Optimism, Action Driving 2014 Commercial Real Estate Trends
Posted On January 30, 2014
“The glass is half fillable.” We recently heard this phrase in an online discussion and it stuck with us. It doesn’t declare the state of the glass as either half full or half empty but rather implies that the situation at hand can be improved through action.
A lot of commercial real estate forecasts for 2014 focus on the state of the industry as either poised for continued gradual growth or on the verge of a slowdown. While our take on the coming year is optimistic, instead of describing the state of the industry sector by sector, we decided to focus our forecast on specific actions we expect to see in 2014 that will influence commercial real estate for the better.
- “Cool factor” added to new and existing multifamily developments. We’re talking rotating art installations, designated dog parks and the like. This action addresses an apparent preference for renting over home buying in some markets. There are a number of contributing factors, including the tendency of millennials to put home buying on hold while, at the same time, empty nesters are looking to downsize.
- More public-private partnerships. Developers seek out public incentives to develop projects, so there’s a growing effort to understand and leverage public-private partnerships in development deals and transactions.
- A push for more mixed-use developments. The millennials are behind this movement, as well. They prefer to work and play in close proximity, in dense, pedestrian-friendly urban developments with a variety of retail and restaurant options. In response, many suburbs reconfiguring around a New Urbanist model.
Toasting the start of a new year, keep in mind that it might make all the difference to see your champagne flute not as half full or half empty, but as half fillable. Happy 2014!