Industry insights, market outlook reports and commercial real estate
news, and trends from the Coldwell
Banker Commercial brand.
As the holiday season swiftly exits, many can relish in relaxation. It has become increasingly stressful to holiday shop, especially for last-minute gifts, as e-commerce and online retail have transformed how we shop during the holidays and all year round.
When Coldwell Banker Commercial Eberhardt & Barry opened its doors in 1970, central Georgia’s textile industry occupied much of the large-scale industrial real estate in Macon and central Georgia. Today, Art Barry III, co-owner and son of the firm’s founder, is revitalizing the area’s industrial real estate business.
According to the 2019 Commercial Real Estate Outlook’s survey of 500 global investors, industrial, along with other “nontraditional REITs,” is the only asset not trading at a discount of its net value. That is despite growing global uncertainty due to U.S. tariffs and Britain’s exit from the Euro.
Every industry has its own lingo, but there are some fields that really have a lot of jargon – and commercial real estate is definitely one of those fields. If you don’t have a background in CRE or CRE experience, it’s easy to feel overwhelmed.
It has been said that it is only a matter of time before blockchain, the proprietary technology that supports cryptocurrencies such as Bitcoin, will begin to infiltrate industries worldwide. Believe it or not, even historically traditional industries are not immune to the disruption – commercial real estate included.
Continuing on last year’s success, the industrial market is still facing ever-tightening space on the coasts and in city hubs all across the country. Mainly spurred by the logistical challenges e-commerce creates, the market shrinks.
Vacancy rates are at all-time lows. Absorption rates are at their highest. The “industrial sector has outperformed all other property types with double-digit total returns” according to the Integra Realty Resources 25th annual Viewpoint report covering the commercial real estate industry.
A lot has been made about the in-store shopping trends we are seeing in retail. What has largely been overlooked are the shipping trends shaping the retail landscape this year. Consumers continue to expect faster deliveries for free, which puts enormous stress on retailers at the last mile.
Augmented Reality and Artificial Intelligence (AR and AI) may still be far from standard in CRE, but it’s only a matter of time. High-end firms have already been using these tech tools on a grand scale. Research by Goldman Sachs estimates that by 2025, virtual reality (VR) technology will generate over $2.5 billion in revenue.
Investing in real estate can be a way to earn passive income and increase your wealth. While plenty of investors have success in residential real estate, others make a move to commercial real estate to gain even more money.