Whether you’re brand new to the world of commercial real estate in Denver or you’re a seasoned investor, you should always keep on eye on industry trends. The commercial real estate market is constantly changing.
What can you expect in 2017? Here are some of the trends that are predicted to shake up the commercial real estate industry during the year:
It’s predicted that developers will seek out multi-use projects in 2017, such as buildings that can be used as co-working spaces or transformed and rented out as single offices. Flexible projects are a wise investment because they allow developers to quickly and inexpensively adjust as the market and neighborhood changes.
Many developers may also try to tackle redevelopment projects in the New Year. These projects have already begun to pop up across the country and have been widely accepted by the communities they are in. Developers can often market these projects as an effort to “bring back” a certain community or “restore a community’s beauty,” so they tend to receive a lot of positive PR as a result of this spin.
Both residential and commercial real estate properties will need to incorporate green technology in 2017, especially if developers want to attract the younger Millennial generation who are heavily invested in green technology. What should developers put into their properties to make them more eco-friendly? Think smart technology, such as programmable thermostats and remote-controlled lighting. Learn about the 10 sustainable features that are changing the definition of smart house
Warehouses will continue to be in demand.
The average national warehouse rent is expected to increase once more in 2017. Why are warehouse spaces so in demand? As online shopping becomes more popular, retailers have to find spaces to house all of their goods. Because consumers now expect their items to be delivered so quickly, retailers have been forced to create new warehouses in multiple locations across the country so products can be delivered to customers as soon as possible. As these retailers continue to grow, so will the demand for warehouse rental spaces.
Construction costs are climbing.
In 2017, construction costs will continue to increase, meaning it is not the right time to buy empty lots and build commercial spaces. Why are construction costs climbing? For starters, there has been a serious shortage of workers. In April of 2016, there were over 200,000 job openings in the U.S. construction industry. The fewer workers there are available, the more it will cost for you to hire them. The rising construction costs could also explain why so many developers may choose to redevelop existing buildings rather than build something new from the ground up.
Do you have questions about commercial real estate? Are you curious about these predictions for the 2017 commercial real estate market? Contact Denver commercial real estate
experts at The Sherman Agency to learn about the various services we offer! Call 303-572-8778 to speak to a member of our team today!