Commercial real estate is an ever-changing market but it is important for commercial real estate investors to review market trends and predictions before making their next purchase. There are a multitude of commercial property options such as retail, restaurants, apartment rentals, and office space. So, if you buy a property for commercial use, how do you decide what type of commercial use is your best investment?
Residential and apartment rentals have consistently saturated markets, especially in urban areas. But an under-utilized commercial space to consider is the office sector. A recent report from the National Real Estate Investor looks at the history of the office sector from 2017 and predictions for this sector in 2018.
Although 2017 saw a slow-down in the office sector of commercial real estate, all hope is not lost for the coming year. The 2017 decline is attributed largely to increasing rents not matching up with occupancy demands. It is projected for 2018 that supply will continue to grow in the office sector and rents will continue to rise. CEO of a Philadelphia based commercial property group predicts a strong 2018 market for the office sector fueled by increased employment.
The strength of the office sector may depend largely on the location of your market, with a rebound in suburban office space projected for the coming year. Suburban areas on the edge of major cities may look to re-zoning in an effort to take advantage of this trend.
With the office space sector looking to make a run in 2018, commercial investors can look to office space as a way to diversify and provide mixed-use opportunities for commercial properties. As with any commercial property investment the acquisition of such properties often involves detailed contracts and in-depth financial transactions, as well as the negotiation of commercial leases. An experienced real estate attorney can assist with all aspects of your commercial real estate transactions.