Industry insights, market outlook reports and commercial real estate
news, and trends from the Coldwell
Banker Commercial brand.
Ten years ago, the industry barely existed. Today it is a multibillion industry in the U.S., raising nearly $20 billion over the last three years. Although the majority of the top financial technology or “FinTech” startups are small business and individual lenders, blockchain and cryptocurrency companies, and data analytics firms, there are several FinTech startups that are impacting CRE.
Vacancy rates are at all time lows. Absorption rates are at their highest and the “industrial sector has outperformed all other property types with double-digit total returns” according to the Integra Realty Resources 25th annual Viewpoint report covering the commercial real estate industry.
Investing in real estate can be a way to earn passive income and increase your wealth. While plenty of investors have success in residential real estate, others make a move to commercial real estate to gain even more money.
Last year, core assets were ranked second highest among investors. This year, secondary metros took that spot. Some argue that the cap rates for core assets and investors looking for assets that produce higher yields are the reason why secondary markets are looking so much more attractive to investors this year. But if you look closely, there are 4 macro reasons why investors are shifting monies and setting their sights on secondary metros.
In a recently released report from the National Association of Realtors (NAR), one fifth of agents that participated in the survey dealt with a commercial transaction where one side was internationally based. Of these transactions, the most international representation came out of China.
It should be no secret that foreign investment has been a large source of overall investments in the American commercial real estate market. This can be a testament to the strength and favorable returns that can be found in the U.S. market. The most foreign investment in commercial real estate is coming from China for a total of 29% of all foreign investment in the country that is approximately $19.2 billion of foreign money coming into the U.S from China. Coming in at second is Canada which invested $13.1 billion in the last year.
You’ve just won a listing for a commercial property — congratulations! Now, the real work of commercial real estate marketing begins. The task of selling or leasing a commercial property for the highest price can be challenging, to say the least. Even in a hot market, it’s essential to use the latest strategies and techniques to keep your client happy and to gain recognition in an often-saturated market.
18-hour cities, or second tier cities, have seen in a rise in popularity among employers, employees and investors as well. The name 18-hour city derives from the idea of these cities not being operational 24 hours like larger cities such as New York City and Los Angeles. The rise in popularity among these cities is due to multiple factors all of which can be beneficial to investors as well as the residents of these cities.
Released in October, the Urban Land Institute’s annual Emerging Trends in Real Estate Report profiles some of the biggest trends set to impact the real estate space in 2017. Although the U.S. market has seen a lack of security in recent months —from Brexit to the U.S. presidential election— the report shows a much more favorable outlook than the rest of the world.