A Look Ahead: Commercial Real Estate News and Trends to Watch in 2020
As we move into 2020, many in the real estate industry believe the market is going to continue the path of slow and steady growth that’s emerged in the last few months of 2019. Throughout 2019, some were concerned about the possibility of a recession when it came to commercial real estate news.
However, now, there’s a general acceptance that we are at a point where long-term economic growth would be slower, but sustainable.
Some have said that the current economic environment is ideal for real estate investments. This is because many investors are searching for safe havens for their capital. Real estate offers stable returns compared to other asset classes, making it a smart choice.
As the end of the year gets closer, it’s likely that even more will be learned about 2020 commercial real estate news and trends; however, here are some things that market expects expect to see as of now.
The Growth of “Hipsturbias”
While it’s a made-up word, “Hipsturbias” is a term that’s being used more and more in some real estate circles. It’s used to describe a specific real estate market that is considered desirable to real estate investors.
Hipsturbia refers to suburban markets that are creating unique versions of the live/work/play environments. There are a few prototypes in place, including northern New Jersey and Evanston, Illinois, which is just to the north of Chicago.
This new real estate market element is designed for those who can’t make city life work. The close-in suburbs mentioned above offer an attractive alternative. It essentially provides an all-inclusive community of stores, shops, and housing solutions.
The Top Markets for Developments and Investments
Recently, the top markets for overall development and investment prospects in 2020 were released. Surprisingly to some, Austin dethroned the Dallas/Fort Worth area this year in the top spot, followed by several other surprising cities. The top five on this list include the following:
The majority of the cities in the top 10 of the list are in midsized markets that have been projected to experience the most growth in the population and highest net migration. Even though the bigger metro areas, such as Los Angeles (ranked in the top 10) and Boston, have a slower population growth, they still offer real estate markets that are highly sought-after, which allows them to continue attracting capital.
A Silver Tsunami
Several demographic trends are occurring at the same time. Particularly, life expectancy has increased as the baby boomer generation reaches retirement age.
In the next two decades, the number of Americans over the age of 80 will double from just six million to 12 million. Also, one out of three households in the U.S. will have someone over the age of 65 as head of household.
The last of the individuals in the baby boomer generation won’t reach the age of 80 until the year 2044. This means there’s a huge influx of seniors who will be looking for new housing options.
Some of the things they are searching for include upscale urban apartments and communities that encourage an active lifestyle. Real estate investors need to pay attention to this trend to ensure they can meet this new demand, which includes the construction of new senior living facilities.
Commercial Real Estate News and Trends to Know
There’s no question that there’s a lot coming in terms of commercial real estate news and trends. Remaining updated and aware of what’s going on is the best way to continue to grow and succeed in this industry.
If you want more information or help with commercial real estate investments, request a consultation. We can provide you with the information and resources you need to make smart real estate investment decisions.