Industry insights, market outlook reports and commercial real estate
news, and trends from the Coldwell
Banker Commercial brand.
Augmented Reality and Artificial Intelligence (AR and AI) may still be far from standard in CRE, but it’s only a matter of time. High-end firms have already been using these tech tools on a grand scale. Research by Goldman Sachs estimates that by 2025, virtual reality (VR) technology will generate over $2.5 billion in revenue.
Investing in real estate can be a way to earn passive income and increase your wealth. While plenty of investors have success in residential real estate, others make a move to commercial real estate to gain even more money.
As the future of transportation and city development changes rapidly, developers are reevaluating the demand for parking in retail, office, and multi-tenant spaces. The lack of ample parking has been a reality for people living and working in densely populated areas like San Francisco and New York City.
Retail trends have greatly impacted the industrial market for the last few years. Amazon shifted the entire e-commerce industry to lightning-fast shipping, which means that industrial centers and warehouses are being moved to closer-to-the-city locations to handle the load.
Last year, core assets were ranked second highest among investors. This year, secondary metros took that spot. Some argue that the cap rates for core assets and investors looking for assets that produce higher yields are why secondary markets look so much more attractive to investors this year.
Drone technology was once exclusively used by the military but has entered the consumer market and grown quickly in popularity. Utilizing drone technology for film and photography purposes has added a new tool to many industries, including real estate, and has also created something new for hobbyists.
Sam Zell recently stated: “The real estate cycle is nearing its end” (Pensions & Investments, May 1, 2017). We must admit that Sam had great timing when he sold his Equity Office REIT to Blackstone in 2007 which was the peak of the last cycle.
Going green is more than just a trend now but what options there are to go green has seen incredible changes throughout the last few years. While small changes can help your lifestyle to be greener there are large changes as well that can be made not only by individuals in their lives but also large companies and developers.
Typically, warehouses are expansive one-level buildings surrounded by other warehouses. With different factors having an impact on the logistics industry, one exciting thing to look at from a commercial real estate perspective is the warehouses that are going vertical.
Electric vehicles are becoming more prevalent as Tesla and other car manufacturers continue to change the auto industry. Another industry that has this impact is the commercial real estate industry, as owners of these vehicles need places to plug in instead of stopping at gas stations to fuel up.