COMMERCIAL REAL ESTATE INVESTING TRENDS IN 2020:
WHAT’S NEW?
Steve Peterson
T
he commercial real estate industry is continually changing, mostly because of technology’s addition to the industry. The real estate industry has been expanding slowly over the decade but remains sturdy and shows no sign of decline, which makes the future looks optimistic. As a new decade begins, it comes with a lot of new trends that will shape the future of the industry and offer investors and tenants many new opportunities.
AN INCREASE IN DEMAND SPACE FOR INDUSTRIES AND A DECREASE IN RETAIL STORES DEMAND Due to the coronavirus, retail stores have had to apply some changes to their operations in order to meet the requirements of the health department. There are many arising questions due to the pandemic, like if the new health guidelines will let businesses to make enough sales to meet up with the rental rates before the pandemic. However, the commercial real estate industry might see an increase in space demand from the industrial sector. These spaces are usually used for logistics and storage. SPECIALIZED REAL ESTATE DEMAND IS ON THE RISE The life science industry has continued to grow over the years and therefore requires more space for research and production to be carried out. Investors have also taken note of the rise in life sciences assets and are therefore considering buying into life science properties for diversification purposes. This will ensure higher profits for such investors than profits, which can be gotten from investing in traditional office spaces. CO-WORKING LEADS TO A DECREASE IN TRADITIONAL OFFICE SPACE DEMAND Over the years, co-working has been on the rise and continues to grow popular among office space owners. The number of demands from tenants, which are smaller than 10,000 square feet, has slowly decreased, but there
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THE POWER IS NOW MAGAZINE | NOVEMBER 2020
