Seasoned commercial real estate pros will tell you that achieving success in this dynamic field means keeping up with trends. Two other key factors often mentioned are learning to be opportunistic in spotting promising deals — and a proactive ability to spot potential losing situations.
Newbie commercial real estate entrepreneurs can obtain these traits through constant professional development. That means studying the field and tapping into resources that offer leading-edge information on what happening in real estate. The fresher the information the better.
Here, then, are some suburb commercial real estate informational and educational real estate resources that will keep you on top of what happening:
This multi-platform digital media provider is a producer of both news and a creator of live events. Owned by Wicks Group, a private equity firm, Bisnow covers 27 top metropolitan markets in the U.S. along with Canada and the U.K. The excellent “must-have” information of Bisnow has earned it a robust 600,000 subscribers. The latter is a strong indication of the quality and value of the information offered.
Founded in 2014, Connect Media has a news division that has grown rapidly since its start-up. It now produces 11 daily newsletters along with 10 commercial real estate newsletters that are handled by a crack team of professional editors.
Furthermore, Connect Media creates and promoted north of 200 digital events that draw many prominent names in the commercial real estate sector.
The Real Deal
Industry observers call it “the premier real estate news outlet in America.” The Real Deal has an enormous reach, capturing millions of professionals through print, digital and social media outlets. It offers breaking real estate news, market intelligence reports, proprietary rankings, custom research, trends, profiles and a lot more.
The Real Deal has been rated among the 300 most-visited sites in the United States – and is ranked No. 1 among websites that cater to wealthy followers.
This source is a leading platform that connects commercial real estate professionals with other key players. Those who frequent the site include building owners, building managers, commercial lenders, brokers and professional services firms.
Commercial Observer’s offers weekly coverage and real-time updates on its digital platform. It hosts live events and offers a cogent mix of breaking hard news along with in-depth feature stories. Here you will also find exclusive industry columnists and detailed analyses of market trends.
The 2020 occurrences transformed the operations of commercial real estate. The pandemic quickened the pace of numerous modifications that were underway. Consequently, tenants and investors had to rethink the best way of running their businesses and utilizing their spaces. However, it is hard to distinguish the changes that will remain and the ones that emerged as an immediate reaction to the pandemic. Investors aiming to allocate their money to commercial real estate should consider the following trends.
Strong Demand for Industrial Property
Industrial real estate will continually have strong interest due to increased E-commerce transactions. CBRE research shows that every $1 billion used in incremental e-commerce produces an extra warehouse space of around 1.25 million. Commercial real estate demand is expected to remain robust considering the 44.5% rise in e-commerce sales from the first quarter of 2020 to the second quarter. The same research reviewed that industrial space absorbed by the end of 2021 will be around 250 million square feet exceeding the historical annual absorption of 211 million square feet.
Adoption Of Omnichannel Sales in Retail Trends
Due to Covid -19 and other changing patterns, the retailers cannot solely depend on storefronts. They must optimize their income-generating ways by using digital devices and platforms. Therefore, retailers need to use both storefronts and digital channels like social media and websites. Subsequently, this leads to considerable investments in digital capacities and increased traditional sales strategy.
Increased Demand for Stock Room
Shifting to digital platforms means more incoming orders from various channels. Therefore, retailers are likely to continue converting their sales floor into mini delivery centers in their stock rooms. Apart from pulling, packing, and shipping orders via digital channels, space will also manage the business’s local pickups.
Rise of Alternate Assets
Private real estate exposure is likely to rise in 2021. Most asset allocators will prefer private real estate because it offers resilience during this imbalanced recovery. Negative yields and high equity valuation from government bonds will potentially push more investors to alternative assets. Serious wealth advisors and wealth managers are likely to engage in private real estate, especially data, industrial, and healthcare centers.
In conclusion, commercial real estate trends in 2021 will drastically change following the ongoing covid-19 pandemic. Some of the changes will outlive the pandemic, while others will vanish when the pandemic ends.
For any Millenials considering or even beginning to scope the real estate world, you’re on the right track. Real estate investing is one of the smartest moves anyone could make, considering the versatility and potential returns. Investing in property comes with neat benefits like passive income, tax benefits, and full control over not only the property and your investment strategy but also your profits.
That being said, deciding to invest in property can be super daunting. Where do you start? What do you do with the property?
To nudge you in the right direction, here are some essential things that Millenial real estate investors should know before jumping in.
Know your budget and credit score
While it’s not necessary to be wealthy to invest in real estate, having some savings will help buffer any risks from investing or at least reduce the uncertainty.
Establish a financial goal and investment strategy
Know your goals and the best plan to get there. Generally, most investors don’t need to pay for an entire, say $250,000 property. This is for the Millenials who are still struggling to pay off school debt: don’t worry, you can invest as well. The cool thing about real estate investing is you can purchase most properties with a down payment, which tends to about 20% of the total price. Options like getting a bank loan or lending from a trusted partner are also helpful for millennial real estate investors with limited cash at their disposal.
Scope the market
Knowing where to look for viable property options requires looking at patterns like population growth, rental demand, and job availability.
Consider the type of property.
Here, you have a few choices at your disposal. The top types of real estate include single or multi-family properties, syndications, or buy & hold turnkey funds. Single or multi-family properties are in high demand and involves a short-term strategy. Syndications are larger, commercial properties with a group of investors, resulting in less risk. Turnkey real estate funds are longer-term investments that offer immediate passive income from tenants already living there.
When you know the type of property you’re looking for, it’s time to take a look at locations you’ve identified based on the real estate market. With your budget in mind, figure out if you want to flip a house or if you’d rather be a long-distance landlord for a turnkey property.
Above all, millennial real estate investors must continue learning and growing. While the first step is to try it out without hesitation, further education will make Millenials savvier in their real estate journey.
The most popular choice among real estate investors, the single-family house, is well understood and profitable. Even in a market prone to recession, many people prefer single-family homes over condominiums, duplexes, or triplexes when it comes to investing. However, not everyone is delighted at the idea and wants to follow that route. Some investors may consider investing in multi-family units. And multi-family dwellings, especially with fewer units, tend to increase the value that matches closely with single-family homes, and their cash flow is a lot better compared to single-tenant dwellings.
This information talks about the details of finding a multi-family property and offers insight on why it can be a pleasing alternative.
Location, Location, Location
Location is of absolute importance in determining the value of a multi-family property. When the neighborhood has well-maintained lawns, quality homes, clean sidewalks, and proper signaling at intersections, it’s easier to find tenants. If there is construction activity in the neighborhood, it’s a sign of growing demand. On the flip side, if crime is on the rise in a particular area, people want to move away, reducing the neighborhood’s overall value. A change in zoning from residential to mixed-commercial use can result in a significant price reduction.
What is Inside Matters
The physical condition of the property, age, and structural stability have a noticeable effect on property value. The choice of paint color, cabinets, countertops, and flooring material matters too. The more bizarre the upgrades, the more likely that it’ll lose its market value. Likewise, the quality of craft, both in terms of original construction and recent upgrades, should be considered before purchasing a multi-family property.
Hiring a Real Estate Agent
A real estate agent can help find a multi-family property unless you insist on doing it yourself. With an agent’s assistance, you can easily wade through many unique situations, questions, and doubts that are usually not encountered in a typical single-family home buying. For example, your loan interest rate and type of purchase ( residential or commercial ) will depend on whether you are buying a duplex or an apartment with five or more units. Should you hire an accountant as well? Probably yes, if the number of units and complexity of your overall tax situation increase.
Homeowners often buy and sell their property. The most important aspect of a house listing is to be seen by as many people as possible to increase a sale’s chances. Despite a general market saturation in the housing sector, it is possible to achieve a higher listing and to reach a wider audience with a few tips and tricks as outlined below.
Invest in SEO Marketing
Search Engine Optimization is a tool that, when used properly, gives homeowners a competitive edge when it comes to online searches increasing home showings. The house listing is prioritized through specific keyword searches. It is advisable to have several long keyword phrases that include the general scenery where the house is located.
Make use of a Lockbox.
A lockbox is becoming one of the avenues that are giving homeowners a competitive edge. It allows the agent to show the house to house hunting individuals even when you are not home. It should ideally be located close to the house so that the agent can have easy access to it while you are away.
Host an Open House Event
One way to pull in the masses to a house showing is to host an open house event. Employing channels such as social media, the local newspaper, and website listings will attract many interested buyers locally. During the event, it is crucial to keep the guests entertained by serving snacks, having brightly lit balloons and banners, and having a magician or clown entertain them.
Offer Time-bound Deals
Proposing a good deal that runs out in a limited time is another way to get people looking into the property. Scarcity induces demand. Since everybody wants a good deal, they will be more motivated to purchase soon if the offer is only on for a limited time.
Any homeowner’s goal is to make the most amount of money they can from selling the property. However, sometimes pricing it at the higher points doesn’t work in favor of the home seller. Having a competitively priced house allows buyers to get it at the listing type’s estimated market value.
A combination of the above tips gives a home seller a competitive advantage, and the client handling the sale of the house can have a much smoother time as they coordinate the sale on behalf of the homeowner.