Commercial real estate undoubtedly took a turn for the worse in 2020, and although some types have thrived more than others, it will take time to see whether the commercial real estate economy rises or falls overall. Thankfully, as 2021 dawns, CRE experts are tentative yet have good hope for a positive turn for this industry in the coming months. Below is a brief look at the CRE trends for 2021.
Commercial real estate investors constantly need to strategize to get the best deals short-term and long-term. This year, experts expect investors to veer toward multiple sectors, as numerous CRE types are doing well and better. One can expect investors to look to invest in commercial properties that have a positive rent flow. Therefore, investors will likely invest in properties dedicated to e-commerce, essential businesses, data centers, and multi-family units.
Industrial commercial properties include data centers, factories, warehouse and fulfillment centers, showrooms, and research and development centers. All of these industries continue to be integral to the functioning of the country. Data centers and e-commerce centers are especially necessary as the world has gone into isolation. Likely, industrial real estate will continue to prove valuable for investors.
Office space is a complicated sector of real estate. While many companies are opting for permanent remote work and less office space, some may eventually see a shift as businesses regain a sense of community and face-to-face collaboration that only physical office space can give. One might see vacancy percentages drop more in the city than in the suburbs, as related industries may group together to attract customers. Similarly, office parks may see strength in numbers as well.
Challenges and Hope
It is difficult to predict how 2021 will be different from 2020’s commercial real estate history. Some kinds, such as hotels, high-rise office buildings, shopping malls, restaurants, and other retail centers have suffered significant blows. However, as the nation slowly deems it safe to go about business once again, CRE experts expect to see these industries and more begin to thrive once again in the second half of the year.
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If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook and Linkedin.