Emerging trends to watch in America’s commercial real estate market


Over the last several years, things have been on the uptick for the commercial real estate in the United States.

With signs that the worst days of the global financial crisis are now behind us, investors can now focus more on growth than loss avoidance.

Firms like the Welfont Group are salivating at the opportunities that await in the days to come. If you take heed of the coming trends in 2017, you can prosper as well.

Let’s take a look at them below…

1) The continued growth of cities

The trend of jobs moving away from the countryside and into the city will ensure their growth through 2017 and beyond.

An even more interesting trend is the fact that Millennials are continuing to favor urban environments over rural settings despite the mobility that their digital jobs are affording them.

This means that there will be a continued increase in demand when it comes to retail commercial space in desirable cities, and a continued deflation in value of those same spaces in smaller towns and villages around the country.

2) The first interest rate increase since the Global Financial Crisis

It has been a long protracted recovery since the depths of the Great Recession, but the continued strength in the American housing market and other sectors of the economy have prompted the Fed to seriously consider increasing interest rates for the first time in almost a decade.

This will have an effect on mortgage payments for current holders of commercial real estate and it might impact whether some may delay getting into the market in the coming months.

Whether that translates to a flurry of activity before the anticipated increase in rates, and a subsequent decrease in activity after that date remains to be seen.

3) America will continue to be a safe haven against economic uncertainty

Despite the progress that America has seen in the past several years, the world at large remains a very uncertain place when it comes to economic growth.

From the effects of the global oil glut in places like Russia and the Middle East, to a slowdown in year-over-year economic growth in China, there are a lot of pitfalls that are making investors nervous at the present time.

One bulwark of optimism and confidence when it comes to short to medium-term economic prospects is the United States.

Having made an impressive recovery from the Global Economic Crisis, its real estate market has rebounded, its industries have seen the beginnings of a rebirth (led in part by the green energy industry), and people are generally confident about the road that lies ahead.

All of this has led investors to pile their money into American assets from the dollar to stocks to real estate.

With several markets possessing plenty of undervalued properties, there are many opportunities for savvy investors to make great deals in 2017.


4) The continued rise of online shopping


The online shopping revolution will continue to put pressure on brick-and-mortar retail outlets in 2017. While many outlets that refuse to innovate will continue to lose market share to players like Amazon, others can realize the benefits of this trend by investing in storage and warehouse space throughout the United States.