Latest 5 Commercial Real Estate Market Trends for 2019


Year to year the market trends has change for every industry. Let’s have a look the latest trends for predicted for the commercial real estate sector and analyse how they can impact commercial real estate tenants like your company.

1. The Industrial Real Estate Boom Will Continue this year

As eCommerce and online marketing are growing rapidly, huge online retailers are snatching up industrial space across the country to house logistics and warehousing. The CBRE’s Outlook Report for 2019 states that vacancy levels in industrial space has dropped to 4.3 percent, a historic low, and predicts that the trend will continue in the new year too. For tenants, this means that rental rates will be high in many areas. If you can invest in commercial property, do calculate and search everything and try to buy commercial property or space for you.

2. A New Brick and Mortar Retail Boom Will Begin

Large retailers shuttering their stores has led to a glut of empty spaces in shopping malls across the country. In 2018, many online-only retailers seized the opportunity to rent these vacant storefronts and establish brick and mortar footprints for the first time. Experts predict that more companies are likely to follow retailers like Amazon moves to brick and mortar, increasing the demand for retail space. For companies that rent retail space and are looking to expand, the first half of 2019 may be the last chance to acquire leases for new storefronts at low rental rates.

3. The Adoption of Commercial Real Estate for Start-ups

Global funds are investing heavily in real estate tech companies, providing a coworking and start-ups with innovative technologies that simplify everything from research to property management with funds needed to launch. You can expect to see a wealth of new technologies that could be beneficial to your company, and the chances of your competitors seizing the opportunity to use new tech are likely to be high. If you own a commercial property there are bight changes to use that space for this new technology or concept of coworking and earn a better return on invest.

4. Rethinking for Urban-only Storefronts

In major metropolitan areas across the country, there has been a shift in housing among millennials. As members of the generation reach their 30s, more are moving out of cities and are settling in areas being referred to as Hipsterfies and Urban-Burbs in suburbs. This means that more trendy retailers will be rethinking urban-only storefronts and that for many companies, it may make more sense to consider establishing offices outside the city limits both to attract talented millennials for recruitment and to save money on lease costs.

5. Your Cost for Tenant Improvements and Maintenance Likely to Rise

Constructions costs rose in 2018 and are likely to continue to rise in 2019 due to tariffs on materials like Chinese steel and Canadian lumber and a shortage of construction laborers. If you’re currently leasing in an older building and have rent escalations tied to actual maintenance costs, there is a good chance you’ll see greater occupancy costs this year too. Tenant improvement budgets will also not go as far, meaning that your company may have to pay more out of pocket if you’re building an office to suit your needs in 2019.

Year to year the market trends have changed for every industry. Let’s have a look at the latest trends predicted for the commercial real estate sector and analyze how they can impact commercial real estate tenants like your company.