A Robust Commercial and Retail Real Estate Outlook for 2015

Commercial Real Estate|Real Estate Marketing|Thought Leadership|
Retail Real Estate Outlook 2018

As we move into second quarter 2015, times are good for the real estate industry. After years of cut backs, companies are hiring once again. Nearly 2.5 million new jobs are predicted, according to ADP Research Institute. Mortgage lenders are underwriting loans and pouring money into value-added opportunities.

Commercial real estate investing continues to look stable compared to other parts of the U.S. economy. This fact has not gone unnoticed by foreign investors who view the U.S. as outperforming other Western countries for the best opportunities for capital appreciation. Cross-border-investment totaled about $28.2 billion, according to Real Capital Analytics, a New York City-based research firm. Multifamily ranked as the most attractive asset type followed by industrial, primarily due to online retail growth and increased need for more distribution centers. Other industries desiring more industrial space include: food, medical, construction, and even the growing film industry sector.

A steady demand for commercial space and low levels of development will equal a trend in less vacancy rates according to experts at CBRE’s 2015 national forecast series, “Moving Up the Risk Curve,” which includes forecasts for ten U.S. cities. CBRE reports that the tech and energy sectors will be primary economic drivers for future growth. In our hometown of Atlanta, predictions stated:

  • Atlanta is in the middle of an industrial recovery
  • Retail has recovered with rising rents and property values
  • Multi-housing properties are a preferred choice for investors
  • Office space demand and workplace densities will require a greater emphasis on parking capacity

In addition, a dramatic shift over the last year in the development of the “retail experience” is expected to continue. In Atlanta alone, the opening of Avalon in Alpharetta,
Buckhead Atlanta and Ponce City Market, all open-air
mixed-use developments, are examples of the desire for authentic, street-front shopping that creates an exciting experience for entertainment and dining options for residents and professionals.

Many more great retail developments are on the horizon in Atlanta and across the country and with a steady influx of investor dollars, this trend is expected to continue for years to come.

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