Major shifts in how we do business are shaping a new commercial real estate market in 2015. Due to low vacancy rates in multifamily units, this area is becoming attractive to investors. Higher employment demand in cities and demand for smaller office spaces will also dictate investment trends. Millennials continue to shape the real estate market as the Baby Boom generation starts to retire. Thanks Fred Schmidt, COO and President of Coldwell Banker Commercial Worldwide, for sharing your predictions. See an overview of trends to help with your 2015 real estate decisions. To read more from Fred Schmidt, click here.
2015 Real Estate Predictions
Tailwinds (positive factors that lead to market growth)
- GDP Growth
- Low Interest Rates
- Increasing Sales and Leasing
- Positive Employment
- Energy Self-Sufficiency
Headwinds (negative growth factors)
- Structural Unemployment
- State and local debt
- Event Risk: Wars and Political Unrest
- Interest Rates May Rise
Multi-Family Trends
- Lowest Vacancy Rate since 2001
- Positive Rate Growth for 8 Quarters
- Surge in Demand in Large Cities
Office Space Trends
- Lower Square Footage per employee
- Influence of Distribution Hubs
- 6-7% of retail from e-commerce and increasing
Niche Investment Opportunities
- StudentHousing
- Assisted Living Facilities
- Data Centers
- Urban Mixed Use
- Data Centers