Commercial real estate is a tricky business, especially if you’re planning to purchase a property!
When it comes to purchasing commercial properties, it’s the location, analytics, and information that make all the difference.
But market analytics change from time to time because the market trends for the real estate industry keep changing. This is because prices fluctuate every couple of months.
What are the market trends for 2020 that you should keep in mind if you’re planning to purchase a commercial property?
Let’s take a look:
More IT Businesses Are Leasing Properties
According to the Real Estate Market Outlook Report, IT businesses are more likely to lease commercial properties, with 4,000 tenants expected to lease over 174 million square feet of space.
A report published by Deloitte shows that the tech industry is expected to grow in 2020, with 58 percent of businesses already using Amazon Web, Google Cloud, and Microsoft Azure.
The market for cities like Salt Lake, Austin, and Nashville will likely grow within a year.
The U.S. Commercial Real Estate Industry Is Strong
Despite problems with the economy, another report published by Deloitte shows that the U.S. commercial real estate industry is still booming.
Over ninety percent of tenants plan to make more technological investments in commercial properties, even if the economy slows down. The report also shows that commercial property cap rates are expected to remain stable. Last year, they trended at 6.6 percent.
The Internet of Things (IoT) is The Next Big Thing
A trend report established that IoT-enabled commercial buildings are becoming increasingly popular. Tenants want commercial properties that are equipped with advanced technology.
This accounts for more than 61 percent of businesses. In addition, 68 percent of tenants are likely to pay an additional 6 percent premium to lease or purchase a technologically-advanced building.
It’s safe to say that commercial properties that are IoT-enabled and equipped with the latest technology are expected to dominate the commercial real estate industry in 2020.