Whether you are new to the commercial real estate business or have been in the industry for years, there are some important trends to keep an eye on. These trends are outlined in this article and should help you better understand the commercial real estate market.
During the first half of the year, commercial real estate sales exceeded the previous record of about $600 billion. The month of December was the best-performing sales month since the start of the pandemic.
Transactional activity picked up again in May. The week of May 17 through May 24 was the slowest week since mid-April. The second week of May showed a 49% year-over-year contraction, while the third week of the month showed a 10% year-over-year decrease. The first two weeks of April showed a 62% year-over-year drop.
The fourth week of March 2020 saw a 36% year-over-year contraction. The month closed with 6% year-over-year sales. Millennials are making their mark on real estate. They are breaking the mold of previous generations and reshaping suburbs. They are making the suburbs their home. They are also influencing the real estate industries and their corresponding industries.
Millennials are known for their tech-savvy and urbane inclinations. They are also known for their progressive views. They are most likely to use the internet to find a home. They are also a highly social generation. They like to live near shopping, entertainment, and transportation. They are also interested in open floor plans, more space, and bigger homes.
Millennials have become the largest home-buying generation. They account for almost half of the home buyers in the country. They are also the most likely generation to use a real estate agent.
Even though real estate is old and has a tried and true formula, it's no secret that the industry is facing some tough challenges. Technology has emerged as an important tool that can help to make managing properties and delivering customer services easier.
Technology is also helping to reduce the barriers between tenants and real estate owners. For example, virtual reality technologies allow prospects to tour properties from the comfort of their own home, and smart locks increase the speed at which vacant apartments can be leased.
Several scientists and economists are looking into the economic impact of the COVID-19 pandemic. This is because the pandemic has spread widely across the world. The study is important for government officials, national banks, and investors. It also has implications for the real estate market.
Currently, there are more than 50 scientific papers focused on COVID-19 and its effects on the real estate market. Most of them are focused on the USA. However, they also discuss the effects on the international real estate market. This article will summarize the most recent empirical findings and market outlook.
The commercial real estate market was the first to feel the impact of the pandemic. The research conducted by the MIT Center for Real Estate showed a substantial decrease in liquidity in all markets from the beginning of the pandemic. Unlike the residential housing market, the commercial real estate market was not directly affected by the recent wave of foreclosures. But this doesn't mean the industry is untouched by the recession.
While the office sector has been in a major reset, the retail property sector has also been hit hard. With high unemployment and an increasing number of work-from-home opportunities, companies are increasingly looking for alternative locations. Some of the best-performing real estate markets have been the coasts, such as Seattle, Denver, and Salt Lake City. However, these cities are not without their own set of challenges. One challenge is labor shortages, which can lead to fears of inflation. Affordability is also a concern. This has contributed to the decentralization trend.
Historically low rates are not enough to offset a supply shortage. As a result, a few areas are holding their properties for longer than the national average.
The best part is that the average homeowner can keep their property taxes in check while they remain in their residence. The California legislature recently enacted a law that will allow seniors to move into a new home with a tax rate that is lower than their old home. This is a big deal for older Californians, who are often fearful of being hit with a tax bill on their next purchase.
In addition, the application of artificial intelligence and machine learning in building management and design could improve building efficiency, safety, and security. Big data analytics tools can also help to refine target buyers and improve the marketing of properties.