The world is changing every day and so are the trends in the Commercial real estate. It’s not a surprising fact that the trends in real estate keep changing and is super dynamic!
It’s been like that since ages and will continue to be so. One can never precisely predict what’s going to happen in the future in the commercial real estate.
However, what can be predicted is the trends of commercial real estate concerned with the near future say a year or two.
If you’re an investor who’s just starting out your portfolio of investments, here’s all you need to know about the 2018 mid-year trends in the commercial real estate in Miami.
Also, read how 2018 is different from 2017 for commercial real estate.
Now, what’s in it for you in knowing the mid-year trends in prior? You can’t control what’s going to happen in the market of the commercial real estate.
But what you can control is the extent of loss of profit you might incur or make in the coming months as you can be well prepared for what’s going to come.
Isn’t a good idea to prepare you and get all tucked up to face it? Read on to learn about the mid-years trends in the commercial real estate in Miami. Let’s dive right in!
Mid-year trends of 2018 in the commercial real estate to look out for in Miami
Number 1 – Industrial real estate sector will continue to see more and more new construction projects
Similar to what happened in the year 2017, the year 2018 will also continue to see more construction projects in the industrial sector.
The construction of urban warehouses was on a spree last year and this year, there will be more and more distribution centers coming up.
So, if you’re an investor looking to invest in properties through crowd-funding or joint ventures, investing in the industrial real estate sector might be a great idea!
With more and more warehouses being built, there is an increase in the demand for the construction of more and more distribution centers and 2018 is going to the year that’ll see massive developments in the construction of distribution centers.
Smart investors always focus on investing in sectors that are on a spree to conquer the market and that’s where your focus must lie too unless you’re looking to invest in residential or commercial real estate.
Number 2 – The trend of co-working spaces is not going to be flushed. They’re here to stay!
Companies offering co-working spaces like WeWork are performing well and more and more customers are mind blown by the concept of co-working.
It’s the best solution for hustling startup founders and entrepreneurs and there’s a significant market for the industry of co-working spaces.
In the last year, co-working spaces giants Ike WeWork performed significantly great and did not fail in providing a tough competition to traditional office spaces!
The real estate investors who are in the business of providing traditional office spaces had a hard time last year due to the advent of co-working concepts and this trend is going to continue in the year of 2018 too.
Now, this might sound as a bad news to many real estate investors who are into the business of selling individual office spaces or office space complexes, but, if you look at the broader picture, it’s a great news to the real estate investors who’re selling large spaces.
Investors with large pieces of lands or complexes no longer have to wait to find each and every tenant to fill up their space.
They can simply sell the whole area or the complex to companies involved in the service of providing co-working spaces and make fortune out of it.
The whole burden of penetrating the market and getting hold of every tenant who’s interested in your office space, negotiating the deals with them, closing the sale gets cut short with the invention of co-working spaces.
All you’ve got to do is to find someone who’s into providing co-working spaces and sign deals with them or partner with them.
All other processes like finding the right tenants to fill up the office space are now the burden of this new company!
Made the whole process simple right?
This is why the concept of co-working spaces is great! And this is why you should not back out from buying large complexes!
This trend of co-working spaces was highly appreciated by the people last year and one may say that people are going to love this concept of co-working even more in the coming years! So, look out for large spaces and spacious complexes.
Number 3 – Increase in Datacenters. They’re nowhere close to slowing down!
With an increase in the trend of moving more and more data into the cloud, the age of cognitive computing which was typified by the technology giant IBM, has begun.
This age of cognitive computing is going to see its early developments in the year 2018 and data centers are going to increase in size significantly.
The real estate research agencies are almost certain that the data centers market would be in great demand in the year 2018.
This is the hot cake market where many investors are interested in investing in such data center markets. Besides, the traditional data centers markets in the regions of Northern Virginia, the Mid West and the North Carolina are definitely going to see new constructions in this sector.
The real estate research agencies predict that these new constructions in the traditional data center spaces won’t be adequate to meet the demand.
This calls for a whole new opportunity for other regions in the United States to become the next best spaces for data centers and Miami tops the list.
Number 4 – The trends of Residential properties will continue blurring
For the past two years, there has been a significant shift in the trends of residential properties in the industry of real estate.
These trends will continue blurring in the year 2018 as well as the new generation of the millennial is on their spree to occupy residential spaces with very varied demands.
Things that were expected by the residential property tenants two years ago is very different from what they are now.
Buying a home was more of a personal connection with the type of home and the area it’s located in two years ago.
But now, buying residential spaces is not only dependant on the type of home and the facilities inside the home, but it’s a bundle of experience depending on various external factors like the proximity to the theatres, shopping malls, the quality of the crowd living in the community and so on.
The millennial generation is the new tenants that are trying to find residential spaces to live in and their list of expectations from the property are very dynamic and subjective, making it almost impossible for the landlords to decide what they must be doing to attract new tenants.
Bottom-line, there still hasn’t been much light on what trends are green for residential properties and it’s still an unexplored area and the real estate research agencies predict that this trend is going to continue.
Thus, there’s a warning bell to all the real estate investors investing in residential properties with the intent of renting it out or leasing it out.
It’s quite a challenge to understand the needs and demands of new generation millennial and it’s more like the game of chances! You might get lucky or you might end up making losses.
Number 5 – Increase in the demand for multi-family properties
The midyear trends in a commercial real estate in Miami have shown a significant increase in the demand for multi-family properties.
People are moving on from the idea of having a private villa or a large mansion to having a good community around them and are in love with the concept of multi-family properties.
While the investors of multi-family properties are already having a plethora of advantages over having various separate residential units, the year 2018 is going to pleasantly surprise then as this year will see a boom in multi-family properties.
So, if you’re looking to invest in the multi-family properties, now is the best time! On the other hand, if you already own a multi-family property unit, there are various ways through which you can attract high paying tenants by making little upgrades to your property.
At Private capital investors, we receive many questions from our clients who write to us about their multi-family properties and one of the most frequently asked questions is “How do I scale up the income I’m drawing from my multi-family property?”.
Well, of the many ways through which one can scale up the income drawn, the most applied and useful way is to provide value additions to the tenants like converting that old unused, non-functional storeroom to a bright board game room or a laundry room.
Such small innovative ideas will help you scale up the income you can draw from your multi-family property because what tenants are now looking for is the whole experience they get from living in a property rather than just the basic amenities provides to them as a tenant.
That was an overview of the 2018 mid-year trends to look out for in the industry of commercial real estate in Miami.
Feel free to write to us about any queries you’ve got concerning the real estate market and our team of real estate experts will be glad to provide you their timely and valuable advice!
