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Top 5 Commercial Real Estate Trends of 2017

Top 5 Commercial Real Estate Trends of 2017

2017 has held surprises that significantly made a great impact on the commercial real estate as well as the economy around the world. The commercial real estate industry has relatively evolved for the past years due to various trends and changes brought about by technology and modernization. Now, let us again take a closer look at the trends that will transpire this year. Here are the top 5 commercial real estate trends in 2017:

Creative Office Spaces

One of the top items of note for this year and years before it is the demand over creative office spaces primarily for startups. Inspiring office spaces such as Google and BarkBox have shown opportunity for future companies to achieve working in similar spaces. The demand for spaces where the creative mind can work and develop has increased over the past few years. This trend shows no sign of slowing down.

Interest Rates

It was announced by the Federal Reserve that it will be increasing interest rates by a quarter of the total percentage point. Moreover, the yield of the Treasury has moved up to over 50 basis points ever since the presidential election on November 8.
High interest rates can constrain commercial property deals and make commercial real estate more expensive. However, it can also give incentives for lenders and borrowers for them to be cautious in bids to minimize the risk.

Virtual Reality Tours

Commercial real estate developers are noticing that in order for a company to be successful, one must effectively take advantage of today’s technology. Because of this, virtual reality tours are becoming more common between many commercial real estate companies. The client can now take a tour of a potentially new commercial real estate space without breaking away from his or her busy schedule. While this trend is still very new, it shows a lot of promise for the remainder of the year.

Pop Up Spaces

New companies and those in the experimental stages have jump-started this trend. This trend has shown popularity over the past couple of years. Despite still being very new, it has shown a positive impact for the demand in these retail spaces.

Eco-Friendly Developments

Employers for any business have to focus on employee retention. One of the alternatives they have found was that the commercial real estate development should be a healthy environment. Eco-friendly spaces with big spaces, open windows, and room for adding live plants have proven to increase happiness, resulting in employee retention.
All of the above mentioned commercial real estate trends may continue to be observed throughout this new year. Nevertheless, there may still be other trends that can transpire within the year.

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Zoobiz

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