Whether you’re a business owner looking into commercial real estate financing to give your business a new home or you’re an investor looking to make money in the long term, commercial real estate remains an extremely smart choice. As The Wall Street Journal details, unlike the housing market, the commercial real estate market is better constructed to withstand economic shifts, both the micro-shifts that affect particular industries and the macro-shifts that affect national and global economies. You need only look at the speed with which the commercial real estate market recovered following the Great Recession to see the proof of that.
Even if commercial real estate investing is a smart move, that doesn’t mean it’s guaranteed to yield the results you want. As any broker specializing in commercial real estate lending can tell you, one of the biggest challenges when investing in commercial spaces is knowing how to follow the trends. In an instant, a trend can transform a solid investment into a foolhardy one, a guaranteed return into a loss. Make sure you don’t fall into one of these traps by educating yourself on three of the biggest trends coming to the world of commercial real estate in 2015.
Three of the Biggest Trends Coming to the Commercial Real Estate Industry in 2015
Buildings Can’t Only Be Functional from Nine-to-Five
One of the biggest shifts moving into 2015 will be the move away from the nine-to-five economy in more places. Both LA and New York have gained a reputation for doing business around the clock, but with consumers and investors expecting more, the eight-hour workday is out; the 18-hour day is the new norm. If you’re looking into commercial real estate loans to invest in a new space, make sure it’s built to do business around the clock.
Green is the Way to Go
As recent statistics from Statista show, more and more businesses are looking for commercial real estate financing to purchase green buildings and construct new ones. There are multiple reasons for this trend, but the most important are costs and public perception. Choosing to go green is initially more expensive, but it saves businesses and their investors money in the long run. Additionally, consumers are increasingly sensitive to businesses that fail to do their part to fight global climate change. Be smart, and only consider commercial real estate financing that you can put towards greener options.
Coastal Cities Aren’t What They Once Were
It used to be that being located near the water was the key to success in business. From Seattle to New York, businesses located in these coastal cities could more readily disperse their wares. Today, in a world that increasingly does its business online, there isn’t as much need to be in coastal cities. That’s why, according to the investing news site ThinkAdvisor, smart investors are increasingly moving into more affordable, yet equally advantageous locations. Houston, Denver, Austin — these are just a few of the non-coastal cities where investors are taking their money in increasing amounts.
Which of these trends do you think will be most significant when it comes to investing in and buying commercial real estate? Share your thoughts in the comments below.