In 2018, Commercial Real Estate (CRE) stands to be impacted by several emerging trends. Some of these factors include increased regulatory costs, others relate to technological advances and space-sharing in commercial business and co-living models. Additionally, disruptions to traditional CRE management styles will arise from collaboration and information sharing, coupled with new modes of transportation, especially in urban areas.
Take a moment to read the article below from thebrokerlist.com detailing predicted trends for the coming year and how they will impact business practices of Commercial Real Estate Brokers. Then, give us a call at Caton Commercial so that we can partner with you to take advantage of the positive changes and navigate any challenges brought about by changes in the industry.
Source: thebrokerlist.com | Re-Post Caton Commercial 1/11/2018
Rapid technological advancements and significant demographic shifts significantly influence the real estate industry. These various factors like growing urbanization, longevity of Baby Boomers and differentiated lifestyle patterns of Millennials are changing the way people value real estate. Add into the mix macroeconomic and regulatory developments, and you have the perfect storm for some significant changes to come to the real estate market in 2018.
With the many changes that have already taken place in 2017, many real estate companies find themselves searching for ways in which they can gain a competitive advantage and drive top- and bottom-line growth in the New Year.
To achieve this, we must identify and monitor emerging trends that are likely to impact the economy moving into 2018. Take a look at the top trends that are shaping the U.S. real estate industry right now!
ECONOMIC OUTLOOK: Increasing Interest Rates Could Temper Growth
Federal Reserve is likely to raise interest rates in the short-to-medium term. Volatile global markets have led to continued low-interest rates, but that’s expected to come to an end in 2018. Higher interest rates are likely to increase mortgage costs and could deter real estate investments to some extent.
Gross domestic product growth will likely increase 2.5 percent in 2018. It’s the same as in 2017, but better than the 2.1% growth in 2016. The modest economic improvement could temper the pace of commercial real estate (CRE) transaction activity.