Commercial Real Estate Trends Property Developers Should Know About


Property development is all about expansion. And it doesn’t only involve building new homes — much of it deals with creating new opportunities for growth in the commercial sector. Sure enough, there is a strong demand for commercial space now that the market has fully recovered from a decade ago. This has prompted property developers to secure more space to accommodate new constructions.

It’s still crucial for developers to know about new innovations in the field. Industry standards, tools, and approaches are constantly changing. Indeed, being able to adapt allows industry players to save money, fast-track quality projects, and push for better products for small businesses and large enterprises.

Here are the top commercial real estate trends that companies in property development should be aware of:

  1. The anticipation of interest rate hikes

The Fed is announcing a major interest rate adjustment as the consumer market continues to stabilize. No one knows for sure how many times the rates will be jacked up, but what’s certain is that borrowing and consumer spending will be impacted by the hikes. Consumer confidence is one factor that determines the demand for new commercial spaces. Developers will then have to keep tabs on the Fed and make adjustments to their business objectives for this year.

  1. Renting remains popular

Many Americans still consider renting as a better alternative than owning a home. The apartment building sector will definitely benefit from a high rent and job growth environment, attracting investors who want to wade in the waters of multifamily investing. We can only expect more people to jump in and leverage opportunities for better cash flow. Developers, on the other hand, may want to focus more on creating affordable products for people that are renting out of necessity. Workforce housing, for one, is becoming more in demand, considering the volume of people migrating to so-called emerging markets.

  1. Emphasis on planning and cost-efficiency

No doubt, property developers often face the challenge of handling complex projects. That is why they are investing in approaches that ensure better safety when it comes to activities such as putting down gas and water pipelines without much hassle and disturbance. In these cases, developers may need to hire contractors providing solutions that cost less in terms of excavating and that reduce the risk of polluting groundwater sources. With a reliable boring company that’s capable of directional boring, you can reduce your construction risks and improve your efficiency.

  1. The toll of online shopping

The popularity of online shopping comes with a risk, and that is a shift from physical stores to e-commerce. This could, in some way, affect the demand for commercial space. Property developers will have to grapple with this reality by building commercial complexes that are functional as well as aesthetically pleasing to consumers.

If there’s one thing we can glean from all this, it’s the fact that property developers will have to take their fields seriously. Careful study goes a long way when it comes to understanding the trends that will surely affect the commercial property sector as a whole.


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Founded in 1994 by the late Pamela Hulse Andrews, Cascade Business News (CBN) became Central Oregon’s premier business publication. •

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