Industry insights, market outlook reports and commercial real estate
news, and trends from the Coldwell
Banker Commercial brand.
Recently, the National Association of Realtors (NAR) released its report on the commercial real estate trends for the international side of the business. It is no secret to those involved in the commercial real estate sector that global investment in the United States has been growing over the last few years.
It should be no secret that foreign investment has been a large source of overall investments in the American commercial real estate market. This can be a testament to the strength and favorable returns that can be found in the U.S. market.
The task of selling or leasing a commercial property for the highest price can be challenging, to say the least. Even in a hot market, it’s essential to use the latest strategies and techniques to keep your client happy and to gain recognition in an often-saturated market.
The name 18-hour city derives from the idea that these cities are not operational 24 hours a day like larger cities such as New York City and Los Angeles. The rise in popularity among these cities is due to multiple factors, all of which can benefit investors as well as residents.
No matter what your interest or role in the real estate market, keeping abreast of the trends is always a best practice. Below, we’ll take a look at some of the top trends ULI and PriceWaterhouseCoopers believe will impact us in the coming year.
While big investors like General Growth Properties and Simon Property Group are shifting their focus to prime properties in desirable locations —those that offer heavy foot traffic and are command the attention of high-end retailers— doors are opening for smaller investors who believe in the value of second-tier malls.
The last couple of years have seen growing participation in the U.S. commercial market by international investors. This can be attributed in part to the relative strength of the U.S economy, and the transparency of transactions here.
The U.S. population saw overall growth of 9.7% in the years between 2000 and 2010, but growth in urban areas was higher, at 12.1%. Urbanization is a significant feature of growth around the world, and has considerable impact on commercial real estate.
To best appeal to international clients, you need to have some understanding of the culture and conditions in the target country. Creating content that is accessible to international prospects may involve setting up a website in the native language, or at least providing a translation feature.
Some of the U.S. restrictions on foreign investment in real estate were considerably eased at the end of 2015. This is likely to boost the already high volume of international CRE transactions in the coming years.