Commercial Real Estate Trends to Watch for in 2017
While 2016 was full of surprises in the commercial real estate market, 2017 promises to bring even more surprises, some of which may impact the economy as a whole. Here’s a look at some of the commercial real estate trends to watch out for this year.
Use of Space
A shift in the way space and materials are used has already started to become a trend in commercial real estate. The demand for housing units with working space, communal areas for cooking and areas for socializing is on the rise. Many commercial projects already take this into account and it’s likely to become a larger trend in 2017.
Use of Materials
The use of lightweight composite panels is another trend likely to hit the industry in 2017. Functionality is starting to become more important than aesthetics, which means ergonomic features within the design matter. Plywood is out for construction and composite panels are in.
New Showcasing Experience
The days of just slapping together a few professionally taken pictures are gone. Now, it’s necessary to have a video of the property, likely from using drones, along with a full experience. Showcasing properties with the right technology allows buyers and owners to inspect the real estate’s thoroughly without needing to actually visit.
This is a very practical approach to real estate as buyers can look at properties very closely without visiting the location. They will be able to save time and money, while still getting a great tour of the property.
Financial and Political Trends
Usually, it’s pretty easy to expect interest rates to do something specific within the year. However, with the political situation of the United States, the interest rates and financial changes are a bit harder to predict.
However, it’s pretty easy to see that higher interest rates could be detrimental to real estate being sold as buyers may be put off by higher prices. This could be used to the advantage of lenders and borrowers, as the risk will be lower due to the higher interest rates.
More foreign investments in real estate are expected throughout 2017. Most of the investors will likely come from various Asian areas looking to expand their financial power for maximum profit.
These commercial real estate trends are all expected to be a part of the market in 2017. With a new president and administration in office, there is some uncertainty as to what the US may expect. This could lead to many surprises throughout commercial industry and the economy as a whole.