As we saw in our 2020 commercial real estate investment outlook at the beginning of the year, suburban areas are beginning to gain more attention as great places for living and working. Over the last couple of years, suburban migration patterns show millennials and other young couples have been moving to the suburbs to live and work. The covid-19 pandemic has only accelerated this switch. Investment opportunities in the suburbs are starting to compete with investment opportunities in urban areas. This migration to secondary markets is one that is expected to rise and bring a multitude of opportunities for commercial real estate investors.
Industrial real estate has been on the rise for the past couple of years, and as a result, families are wanting to live closer to their jobs. Additionally, as millennials grow older and start families, they are moving to suburban areas, which is a rising trend. Some of the reasons families are moving to the suburbs is because of the cheaper cost of living, the lifestyle, the space for growing families, proximity to work, better school districts and societal changes due to covid 19. This migration is getting commercial real estate investors attention, as there are increasing opportunities in these areas.
Businesses have also been seen to have similar suburban migration patterns as their employees and customers move also. For short term effects regarding the pandemic, some businesses are looking to establish operations elsewhere that would provide for a safe workspace for their employees. Creating space in the suburbs would provide a better commute for many employees and a safer work environment. Many businesses are expected to successfully move to the suburban areas soon after covid-19. Although, there is not anticipated to be any devastating effects to those urban areas in which they are leaving.
All of these changes will be new to each party involved. While there is an abundance of office space and rental properties that will be of use in the suburbs, the influx of people to those areas will call for adjustment. Despite the effects of this migration and the covid 19 impacts, the demand for office space, housing space and even retail space is high, which is good news for the commercial real estate market. These suburban migration patterns will bring new conveniences to these less populated areas and will provide countless opportunities to commercial real estate investors.
Have you thought of moving your business to the suburbs? If you need any help finding a space, give us a call and we will be happy to help you get it figured out!