MBA Releases Commercial Real Estate Trends.
Report Examines Commercial And Multi-Family Real Estate.
Commercial real estate (CRE) and finance (CREF) markets don’t operate independently of the broader economy, but changes in the broader economy may not translate directly into commensurate changes in CRE and CREF.
OFFICE
Office property markets have benefitted from ten years of steady employment growth — with the number of non-farm employees rising from 130 million in 2010 to 150 million at the start of 2019. But that job growth has had to fight against other trends, most significantly the more efficient use of office space. According to CoreNet Global, North American offices averaged 225 square feet per employee in 2010. That figure fell to 176 square feet in 2012 and 151 square feet in 2017. The reduced space needed as companies move to fewer offices and more open-space desks has cut into the overall demand for space and sapped a significant share of occupancy. Equally important is the changing nature of the use of space.
MULTIFAMILY
Housing demand and household growth are both running at strong rates, with more than 1.6 million households added in each of the last two years. And while single-family new construction is lackluster, there are currently more multifamily units under construction than at any time since the mid-1970s — more than 600,000.
RETAIL
No property type has received as much attention lately as retail. Headlines about the growth of ecommerce, the future of shopping malls and the impacts of tariffs have all led to head-lines casting doubt on the role of brick & mortar retail going forward. And while these and other trends all portend change, the sector continues to benefit from an active U.S. consumer.
INDUSTRIAL
It seems that for every ounce of concern about retail there is an equal amount of positivity about industrial. The key driver has been logistics, and the growth in demand for e-commerce support. The growth is not only changing the amount of space needed, but also the types, with greater emphasis on “last-mile” properties close to the end-consumer.
Click HERE to download the report.
For Specific Information contact us at (941) 921-2117 or EdBertha@DiscoverSuncoastHomes.com
Burns & Bertha – Changing Lives – Red Line Investors – © 2020
www.DiscoverSuncoastHomes.com
Reprinted with permission of Mortgage Bankers Association. All rights reserved. ©MBA®
