Commercial Real Estate Continues to Grow Over the Years
As with most of the economy, commercial real estate prices cratered during the recession of the late 2000s and early 2010s. However, as the economy has rebounded, so has this lucrative market. There is a variety of factors that have led to this growth. Each of these factors should continue to pay dividends to those who invest in business-related real estate.
The Move to Nontraditional Medical Spaces
It used to be that to receive medical services you had to go to the hospital. That is no longer the case. As technology improvements continue, procedures once seen as exclusive have become more commonplace. Furthermore, as therapies and procedures modernize, the need for outpatient services increases with it. That is, some medical spaces no longer require the need for long-term or even just overnight patient care.
Additionally, patients have grown to treat their medical care from a consumer-based point-of-view. They are no longer willing to travel far distances, hover through nearby streets for parking, or wait excruciatingly long in cold, uncomfortable waiting rooms. As medical spaces continue to move into locations that traditionally catered to retailers, there will be increased demand for commercial real estate.
The Change In Food Purchase Habits Requires Additional Cold Storage
People are always going to eat. However, from where they source their meals has undergone a steady change over the past decade. Increasingly, individuals and families are incorporating subscription-based services into their meal planning. These services offer ready-to-cook meals shipped out from a local or regional distribution center.
The main issue for many of these subscription-based businesses, though, is logistics. Food needs to be cared for, often refrigerated, and travel relatively short distances to remain fresh. To help expand their footprint, these companies are demanding distribution centers that contain the necessary refrigerator and cold storage space to keep their inventory ready for shipment.
In cases where they cannot retrofit existing distribution centers, companies are building their own. To make use of current travel networks, these centers are built near airports, waterways, and interstate highways.
The Evolution of the Hospitality Market
The ability to turn a spare bedroom or condo unit into a short-term rental has upended the classic hospitality market. To battle against these start-up insurgents, hotels are testing new concepts, locations, and services to help bring the business and leisure traveler back into their grasp. This can result in hotel brands seeking unique properties near the type of experiences modern travelers seek out.
As new markets expand and engage in the economic principle of creative destruction, commercial real estate will continue to grow. Knowing the specific sectors that will grow, though, is the key to investment success.