With every passing year, the necessity of staying up to date on all of the latest trends in commercial real estate becomes increasingly more important. Looking for success in commercial real estate? You must understand the market and keep yourself informed. The year 2019 is no different. If you are planning to invest in or already have investments in commercial real estate, it makes a lot of sense to read up on all of the latest trends in the market. 2019 is shaping up to be a year with tons of potential in commercial property for rent and office space real estate. Keep reading below to learn about 3 commercial real estate trends you should know for 2019.
Industrial Real Estate is Booming
The demand for industrial real estate is absolutely soaring, which is largely a result of a massive consumer shift to E-commerce and online shopping. Brick and mortar retail space is quickly becoming a thing of the past, which means you might be able to find commercial property for sale at a great price. The increasing prominence of E-commerce is a trend that is likely to continue throughout 2019, which means the need for industrial real estate to store and ship massive amounts of physical products will rise as well.
The Fed Is Expected to Steadily Boost Interest Rates
Job growth in the United States is gradually increasing and the unemployment rate is low. There are more homebuyers than homes for sale. These are signs of a steady and stable economy. That means you can expect the Federal Reserve to continue boosting short term interest rates in order to maintain this economy and manage inflation. The Fed already delivered 3 boosts to interest rates last year, so keep that in mind for 2019.
High Investor Demand for Industrial, Retail, and Multifamily Assets
As we mentioned earlier, the demand for industrial real estate is quite high. If you are seeking an investment that allows you to create commercial property for rent, keep in mind that large institutional investors are buying up industrial, retail, and multifamily commercial real estate assets as quickly as they can. A quick look at some of the most popular REITs will confirm that there is high investor demand for this type of commercial property for sale.