Looking for what 2020 could mean for the Commercial Real Estate sector?

Well, there seems to be a bright outlook for it this 2020.

All in all, it is predicted that sustainable, but slower growth is expected for the U.S. economy and commercial real estate (CRE) market, with tariffs, recession fears and a flattening yield curve among the issues posing potential risks.

In the commercial market space, investors are expected to pay a premium for multifamily, industrial, and warehouse properties because of low rental vacancy rates and the sustained demand for ecommerce sales. Cap rates for these properties will likely remain historically low due to the premium for these properties over other assets like offices and retail malls.

While industrial properties are expected to continue to offer good returns for investors given the sustained demand for industrial space from online and traditional brick-and-mortar stores. Both are fiercely competing for consumer loyalty and spending by offering both offline and online shopping options, according to the National Association of Realtors (NAR).

Furthermore, technology continues to change the CRE business in wide-ranging and consequential ways. Including raising information security and data privacy concerns.
And as baby boomers who spent their entire careers in real estate retire, the CRE business faces challenges attracting and retaining talent in the face of increasing competition for skilled workers.

The question is, what might CRE professionals take away from these findings?

Let us know in the comment section below!

About the writer:
Shaura Cuyan writes about all the hottest Real Estate trends and predictions for Summit VA Solutions! She has previously written for a number of freelancing gigs and writes her own blog on lifestyle and current issues. She is a Graduate of Bachelor of Arts in Communication, taking up her Masters in Development Communication.

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