Commercial real estate has several benefits over residential real estate. First, your tenants tend to be long-term. They also typically pay for building upgrades, maintenance, and repairs. However, choosing the right type of investment is vital. Therefore, these are a few trends you should be aware of.
Multifamily Unit Amenities
With the rise in apartment living, many individuals seek units that offer unique amenities. One of the most important amenities these individuals are looking for is an event or community space. These areas are often used for private meetings, parties, and other events. Leasing these spaces out can provide additional income, but you can also set up a first-come-first-served schedule for the residents.
However, you should also host events in your community spaces. For example, you may host a farmer’s market, flea market, craft fair or movie night. Preplanned events encourage your residents to build community and get to know each other.
When you create your community spaces, make them adaptable and multi-use to support various event types.
Technology Updates
Many individuals seek facilities with smart technology. For example, many apartment buildings offer smart home amenities. However, you can easily spend more than these technologies are worth. When you invest in any additional technology, be sure you receive at least an adequate return on your investment.
Some technology, such as smart metering, helps you reduce costs, and you should always invest in software that makes your job easier and more efficient. However, don’t forget smart safety and security upgrades.
Warehousing and Storage Needs
Due to the shift to online retailers over brick-and-mortar stores, many companies need warehousing and storage facilities. Recent supply chain disruptions have led organizations to modify their inventory management strategies, resulting in them holding more inventory than they did in the past. In addition, these warehouses should be equipped with technological advances that make inventory management and shipping more efficient.
Co-Working Spaces
Businesses and individuals still demand co-working spaces. These locations can house different businesses or working individuals in the same building. These companies often lease their space for above-market values. In addition, they often require less space than traditional office buildings offer. Because they create built-in traffic, companies are attracted to these locations. If you create a space with regular visitors, larger companies may also start investigating and negotiating leases with you. In addition, companies that build regular clientele and are moving into growth stages will often try to lease larger spaces from you as well.
Whether you are a new or established commercial real estate investor, you must understand current trends and adjust your strategy accordingly.