COMMERCIAL REAL ESTATE TRENDS OF 2020 ERIC PERARDI
Experiencing success in real estate is all about finding a way to be ahead of the trends. The best of the best in the world of investing find a way to be proactive instead of reactive when it comes to spending their money. If you want to start seeing a return on your investment, you’ll need to know the trends and find a way to get out in front of them. So what trends are on the horizon in the world of commercial real estate? Knowing what they are and how to approach them could be the difference in success and failure.
THINGS WILL KEEP GETTING BETTER The United States is currently experiencing its longest expansion in history. Many experts in the real estate industry believe that the growth is just going to continue meaning there will be more opportunities for investors as we step into a new decade. This is being attributed to the fact that significant amounts of capital are being invested, and the people who invest them are looking for safe havens to invest them in.
LOCATION, LOCATION, LOCATION
Everything in real estate is about location. You can have the greatest home imaginable, but if it’s in the worst neighborhood in the state, it’s not really worth anything on the market. You can find a great commercial building to invest in, but if it’s not in a place where it’s needed, you won’t make any money —research what cities are on the rise and plan on investing accordingly. Current trends indicate that Austin, Texas, Raleigh, North Carolina, and Nashville, Tennessee, are among the three best cities for commercial investors to consider right now.
Knowing the demographics of the area that you’re considering investing in is equally as important as finding the right location. If you’re looking for a multifamily unit to invest in, studies indicate that you’ll want to find an area with a growing millennial population. Millennials are now to the point of getting married and having children, which means they want to find homes and neighborhoods where they can raise those children. Millennials are also more interested in renting than they are owning as they consider themselves willing to relocate for work-related reasons.
KNOW YOUR AUDIENCE
Thank You
Eric Perardi is a successful real estate developer and the President and Founder of Perardi Development in Austin. TX. For more information on CRE, visit ericperardi.com