The new decade is bringing success in commercial real estate, so don’t fret to invest. With the combination of low-interest rates, a booming economy, and low inflation, commercial real estate is expected to flourish in 2020. If you’re looking to invest, check out our thoughts on why 2020 is predicted to be a good year to invest in commercial real estate.
The U.S economy is entering 2020 in good condition, but will likely slow throughout the year. While economic growth will gradually decline in 2020, a recession is not expected as consumer spending will continue. With unemployment rates at an all-time low since 1969, consumers are expected to keep the economy afloat. With this considered, investing in real estate this year is a sound decision.
With so many businesses expanding over the past few years, more companies are in search of office space. According to CBRE, the technology industry is the number one field looking for more space in 2020. Financial services and health care sciences are also expected to expand. With growing demand, it is a good time considering investing in leaseable space or new office developments.
While retail space, like malls, has been expected to come to an end soon, the Gen Z population has countered that prediction. With the entrance of Gen Z into the economy, malls should see a boost in 2020. More retail spaces are being opened than closed this year. This shift provides investment opportunities in “open-air” shopping centers and mixed-use developments.
Apartment demand is expected to slow in comparison to 2019 but will maintain profitable in 2020. Multifamily developers will continue to stay active in 2020, making it a good year to invest. Likewise, CBRE concluded that developers are focusing on developing suburban areas this year.
The combination of a great economy with the need for more space is sure to make 2020 a good year to invest in commercial real estate. If you’re interested in enjoying the benefits of investing in commercial real estate, but don’t know where to start, contact us today.