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Commercial Real Estate Trends for the Second Half of 2019


It has been six months since we bid 2018 goodbye. But as we reel towards the end of 2019, what’s in store for the commercial real estate sector in the coming months? Given that there has been a lot going on in the rental property market, investors and developers will have to keep their eyes peeled for important developments.

Sure enough, there are a few important reasons to keep ourselves busy during the second half of the year. From technological innovation to new methods in property management, the commercial real estate sector is definitely in a state of flux as people focus more on finding better investment opportunities in this consistently growing industry.

For that, we just have to zero in on the two most important trends that matter for the rest of the year and will matter in the months ahead. 

Technology will define the multifamily sector

From AI software to smart home technology, it’s understandable that the entire world of real estate will benefit from what the tech industry could offer down the line. This comes as more and more people demand homes that match their lifestyles. And seeing that millennial renters have well-defined criteria when they’re out looking for the right places to settle in, investors will have to provide the right amenities along these lines or upgrade existing ones.

Sure enough, multifamily properties will have to be equipped with the latest features to better appeal to millennials who want to lead digitally-driven lifestyles. This should include features such as co-working spaces. In terms of property management, software packages can also be included to better track maintenance and repair activities and ensure proper coordination with property managers and contractors. 

Although there has yet to be a significant development in terms of connecting the multifamily industry and technology, investors and property managers could at least use existing tech and leverage big data to unlock insights into rent growth and cash flow optimization.  

Custom property construction

Another important development to watch out for is the rise of custom builders that cater to business owners and entrepreneurs. Along with the popularity of custom home builders like Manufactured Homes, the demand for commercial real estate is steadily rising despite slower job growth and the normalization of interest rates. 

Going beyond these challenges, developers will have to look for ways in order to add to the current market inventory without jacking up rents. By focusing on intuitive building designs that cost less to maintain, property owners would still be able to offer up competitive rates which could entice younger renters. 

What’s more, custom property builders are becoming much more prevalent nowadays, seeing how new methods and techniques in property construction have made it easier to build more durable apartments that are cheaper to construct and won’t cost much to maintain.

Commercial real estate offers up many an opportunity to earn passive income. As investors seek to leverage the sector for easy gain, they will have to brace for what’s to come, especially now that the market is still very much uncertain.

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