Commercial Real Estate Trends to Watch in 2024

The commercial real estate realm is always shifting, and 2024 will be no different.

Every year brings new challenges and trends that will reshape how you conduct your CRE business. Factors ranging from the economic to the technological will bring about big changes, and keeping up with those changes will help you benefit from the opportunities they present.

Here are four commercial real estate trends to keep an eye on in 2024.

Industrial Real Estate Growth

One of the biggest shifts over the last year has involved the industrial sector. As consumers have begun shifting their buying to e-commerce sites and increasing the growth of online sales, the need for more industrial real estate has expanded significantly. This opens new opportunities for selling, buying and leasing warehouse and manufacturing properties, as well as refueling and rest stops for the trucks that deliver to and from these properties.

Continued Neighborhood Retail Success

While e-commerce continues to play a huge role in consumer buying habits, it still represents an overall smaller percentage of global retail. For the time being, brick-and-mortar shopping remains the dominant option, and that means plenty of opportunities for CRE success in 2024.

The biggest retail trend to watch involves neighborhood shopping centers. These collections of shops and restaurants continue to generate steady income for landlords, particularly when they’re situated in areas with dense populations. This sector is expected to continue performing well throughout the next year, and if the trend holds, neighborhood retail could prove to be a smart investment for the foreseeable future.

Office Space Shift

It’s no secret that the pandemic has changed the way we work. Office spaces in particular have been majorly impacted by the shift to working from home, but this doesn’t mean such spaces are now obsolete.

On the contrary, landlords have been finding creative and financially beneficial ways to repurpose office spaces in the post-pandemic era. This includes updating offices with the latest technologies, saving room with shared and co-working stations, and revamping offices to feature more flexible, open, collaborative spaces for workers.

Another trend to keep an eye on is the complete refurbishment of offices into entirely different spaces, such as apartments or even data centers. The necessity of this option will be largely dictated by the needs of your specific market; if there’s little demand for office space near you, converting your property into something that is in demand might be worth considering.

Increased Technology Use

You’ll likely see technology and AI top a lot of trend lists in 2024, and it’s easy to see why. The latest tech – particularly the rise of artificial intelligence-driven software and solutions – is changing the world at an exponential rate, and the CRE landscape is set to reap many benefits from this massive shift.

Property owners are now using a wide range of advanced “proptech” to make their lives (and the lives of their tenants) easier. This includes digital payment options, new organizational software, communication apps, smart thermostats, virtual reality tours and inspections, AI-powered analytics and much more. Keeping up with these advancements and how they’re improving workflow, tenant communication, bookkeeping and research is no longer optional for those in the CRE realm; it’s a necessity.

Conclusion

2024 is shaping up to be a watershed year in how commercial real estate business is performed. From a greater focus on industrial properties and neighborhood retail centers to the creative repurposing of office spaces and the rise of AI, the next twelve months will offer plenty of opportunities for growth and success. By recognizing these trends and their benefits, you can seize those opportunities and make 2024 your most successful year yet.

Need a trusted partner to help you identify and take full advantage of this year’s CRE trends? The experts at DRK will answer your questions, give you market insights and guide you through every step of the buying, selling or leasing process.

Take a look at the lineup of properties available in the Columbus, Ohio, area right here.

Until next time,

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