The Trends affecting commercial real estate:
Growth is important to any company on where they may want to start a business, or invest in commercial real estate. Investing in commercial real estate could be lucrative, and it is important to know how to select an upward market. Here are a few key trends that affect the commercial real estate market.
- Cost: The cost of conducting business will influence investors and companies who want to build a business in a certain market. Take New York City for example. The cost in the big apple is sky high. Everything is more expensive. The cost of starting a business in NYC would be higher compared to Columbus, OH.
- Housing: Real estate prices matter to companies. This phenomenon affects whether workers are willing to move to a certain market. If rents and housing prices are high, it could be tough to attract some workers.
- Development: The urban development of city centers and other areas of the market influence commercial real estate. For example, if you were to open/invest in a restaurant, would you want it located near a booming city center, or out in the middle of nowhere?
- Quality of life: This is important when people are considering where to live and do business. Is there good entertainment? Is public transportation accessible? Is the area safe for my family to live and work?
- Tourism: People who visit present an opportunity for them to spend money on dining, lodging, transportation and many more sectors of a market. Tourism can be great for commercial real estate.