The year 2023 brought significant changes to the commercial real estate (CRE) industry, with various factors impacting tenants and investors alike. Amidst the challenges, several trends emerged, pointing towards new opportunities and innovative approaches. This blog explores ten noteworthy trends that captured the attention of CRE professionals and are likely to shape the industry in 2024 and beyond. From self-storage investments and the impact of rising interest rates to innovative office solutions and unique property conversions, let’s delve into the evolving landscape of commercial real estate.
Self-Storage Investment: A Growing Asset Class
Self-storage investment gained turbocharged appeal in 2023, as global investors recognized its potential for consistent growth and resilience during uncertain economic times. We explore the reasons behind the increasing interest in the self-storage sector and highlight key considerations for curious investors.
NNN Retail Properties and the Influence of Rising Interest Rates
Triple-net lease (NNN) retail properties, known for their reliability and low-maintenance nature, faced the impact of rising interest rates in 2023. We examine the basics of investing in NNN properties and discuss how interest rate fluctuations affected this asset class.
Reinventing Offices for the Future
The return to the office in 2023 required innovative approaches to attract both employees and corporate decision-makers. We explore the need for office spaces to evolve and provide environments that foster productivity, collaboration, and unique experiences for workers.
Empowering Small Businesses through Lease-to-Own Models
With a lease-to-own commercial property company, emerged as a solution to help small business owners secure their futures. We discuss how this startup aims to empower entrepreneurs by enabling them to become property owners, transforming their businesses into generational wealth.
NYC’s Hottest Property Sectors: Subsidized Housing, Outdoor Parking, and Neighborhood Retail
Despite slow capital markets, certain sectors in New York City showcased potential in 2023. We chat with industry experts about the appeal of subsidized housing, outdoor parking/storage, and neighborhood retail, discussing the value and opportunities they present.
Vertical Farming: A Green Solution for Office Vacancy
Calgary-based company Agriplay introduced an innovative use for underutilized office properties—vertical farming. We explore how this technology can transform vacant office spaces into profitable farms, enabling the cultivation of fresh produce for local markets.
Global Real Estate Investment by Individual Investors
Real estate investment has become a global pursuit, even for smaller entrepreneurial investors. We examine the top ten countries where private real estate investors are actively placing their bets, offering insights into emerging opportunities worldwide.
Navigating Distressed Commercial Property Investments
The pursuit of distressed commercial properties gained relevance in 2023 due to rising interest rates and an increase in foreclosures. We provide guidance from legal experts on defining, acquiring, and capitalizing on distressed properties.
Transforming Malls into Multifamily Apartments
As malls face challenges, investors explore innovative ways to repurpose these retail spaces. We discuss the opportunities and challenges associated with converting malls into multifamily residential complexes, offering insights from industry experts.
Emerging Retail Concepts: Pickleball and Beyond
Pickleball, a sport that gained immense popularity, made its mark on commercial real estate in 2023. We explore how the enthusiasm for this sport has influenced multifamily projects, retail centers, and other emerging retail trends to watch.
Conclusion:
The commercial real estate landscape witnessed dynamic changes in 2023, driven by factors like self-storage investments, office innovations, unique property conversions, and emerging retail concepts. As the industry evolves, staying aware of these trends will help investors, developers, and professionals navigate the changing market and seize new opportunities in the years to come.