The commercial real estate market is changing rapidly. The time for understanding these changes is now. Even the most astute observers are struggling to keep up with the rate of change. The market is changing so quickly that businesses often feel stuck in their real estate solutions. How can we change our business without selling our assets? Change is scary, especially when it involves a major risk factor such as selling your business. Change can be difficult to deal with and sometimes, not even the seller of your business can know what the future holds. The good news is that there are ways to adapt and change your business without selling your soul.
Change is a risk factor in any business. A risk factor is an aspect of your business that is likely to cause problems in the future. Change can be difficult for any business and even the most successful business owners may struggle with change. However, change is inevitable in our fast-paced world. That is why we are going to talk about the current commercial real estate market trends and what they mean for your business.
Why is the Commercial Real Estate Market So Volatile?
The current commercial real estate market trends are caused by many factors. One of the largest factors is the rise in the popularity of coworking and flex work locations. These types of locations attract people who like the flexibility of working from a variety of locations. In 2017, coworking locations increased by nearly 18%. This type of business model can be a great fit for companies that have employees who are looking for flexible work hours.
Another important factor driving the current commercial real estate market trends is the rise in the popularity of e-commerce. Consumers are now choosing to spend their money online instead of in physical locations. This movement has caused the retail market to shrink by nearly 2% in 2017. This change in consumption habits has caused the commercial market to shrink by nearly 0.8% during the same year.
Key Trends in the Commercial Real Estate Market
Now that we understand the drivers of the current market trends, we can discuss the key commercial real estate marketing trends. The first trend is that the market is becoming more digital. This trend is driven by the growth of e-commerce. The second trend is that the market is becoming more affordable. This trend is caused by a combination of the low-interest rate environment and the rise in the popularity of flex work locations. The third trend is that the market is becoming more regional. This trend is caused by the rise of e-commerce.
6 Ways to Leverage the Commercial Real Estate Market Trends
There are six ways to leverage the commercial real estate market trends. First, look for commercial real estate deals in a growing market. Second, learn about the financing options available for your real estate acquisition. Third, leverage the digital trends to research your target customers. Fourth, leverage the regional trends to select locations for your business. Fifth, leverage the affordability trends by finding locations close to your customer base. Sixth, leverage the demographic trends by continuing to find locations where your employees can work.
Smart Investments for the Future
One of the most important steps you can take to change your business is to review your investment strategy. If you have been looking at your current real estate situation as a long-term investment, now is the time to evaluate the risks associated with your current strategy. This change can help you make the best decision for your future growth. You should also look at your revenue strategy. If you have been focusing too much on acquiring more real estate for the sake of keeping your assets, it is time to review your revenue model. Change your business model to reflect the current trends and you can reduce risks in your investment strategy and revenue model.
Conclusion
The current commercial real estate market trends are driven by change. This change can be difficult for any business, but you can leverage the market trends to your advantage. First, look for commercial real estate deals in a growing market. Second, leverage the financing options available for your real estate acquisition. Third, leverage the digital trends to research your target customers. Fourth, leverage the regional trends to select locations for your business. Fifth, leverage the affordability trends by finding locations close to your customer base. Lastly, review your investment strategy and revenue model to ensure you are prepared for the future.
