Top 3 Commercial Real Estate Trends to Keep an Eye on in 2018

commercial real estate trends in 2018

The commercial real estate industry is highly competitive, and sometimes to gain an edge and boost sales, you need to stay ahead of the curve. You can do this by knowing upcoming trends that are expected to impact this sector in 2018. Here are several to keep an eye on and ways you can take advantage of them – helping you take your commercial real estate business to the next level.

2018 Commercial Real Estate Trends

  1. Economy Will Continue Growing

  2. According to economic indicators, the economy in 2018 is expected to see continued growth, meaning more investment opportunities for your commercial real estate business. More jobs will be created, and thus more construction projects will get the green light in certain sectors.

    Take this opportunity to expand your real estate portfolio, focusing on new real estate. You won’t have to spend as much time or money searching for diamonds in the rough. Nor will you have to pay a lot of attention towards renovation, as these buildings will be move-in ready for clients.


  3. Industrial Real Estate Will Soar

  4. In commercial real estate, there are many types of facilities you can purchase. In 2018, it looks like industrial buildings will soar the highest. It’s not surprising given the ever-growing demand for distribution centers and warehouses. Consumers constantly want more and more goods, and your real estate company can take this window of opportunity to focus more on these industrial properties.

    If you’re going to follow this trend, there are some tips you need to keep in mind. For example, like with any real estate purchase, you should focus on the location of these industrial investments. Ideally, you want to choose a centralized location since these shipping and production centers need quick and easy access to consumers.

    Surprisingly, industrial real estate is not as expensive as many real estate investors once thought. You still need to come up with a budget, ever before searching for properties. You then won’t be as tempted to engage in impulsive buying and put your real estate business in a financial bind. Think about the long-term payoff, as opposed to shortsighted goals.

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  5. Infrastructure Projects Will Become a Top Priority

  6. Now that the Trump administration has passed a tax reform bill, it’s shifting its attention toward infrastructure. These transportation projects will ramp up in 2018. While this could put a lot of pressure on the construction industry, it can greatly benefit the commercial real estate sector.

    With more access to bridges and railway systems, people will have an easier time getting around. More transportation activity means a higher demand for commercial real estate around these developmental areas. Your real estate company should seek these growing transportation-oriented areas, before the competition and, more importantly, prices rise too much.

The commercial real estate landscape is constantly evolving. Right when you think you’ve mastered all there is to know, regulations or a shift in the economy can change everything. However, the more up to date you are with current market trends – like the ones listed above – the easier it will be for your commercial real estate business to adapt and continue to be successful.