The main commercial building trends for 2016 are mostly hinged on economics. The main focus is on increasing demand for building, increasing building costs and rising construction wages.
In particular, we are seeing growth in the United States. Nashville has seen a good deal of growth, while there is a pull back in Houston occurring. Despite retail claiming the focus for its customers is turning online, and despite seeing more than 100 Macy’s stores closing, and Sears and Kmart shuttering many stores, construction claims retail is a growing sector.
One large commercial real estate firm reports that in 2016, the year-over-year numbers are promising a 24% increase in retail building. The disturbing part of this trend is that despite vacancies, new buildings cost more to rent.
That means that even if there are fewer retailers in the field and in a position to keep bricks and mortars stores, those stores will pay a lot more to rent new space. This, along with the run-away rents in mostly empty high-rises in San Francisco’s housing market, are alarming for the construction industry.
At some point in the near future, it seems we will be reading about the construction workers who have no jobs and no wages, not increasing wages.
Maybe you invest in real estate and want to branch out in your investments. Currently, there are many exciting opportunities in commercial buildings. The trends are leaning more towards student housing but even building commercially zoned properties in big cities is a good investment.
If you decide to invest in a commercially zoned property, be aware that there are many franchises that will be willing to rent from you. If you are lucky, you can sometimes even ask a franchise to give you some of the gross earnings from a particular property.
For example, if you invest in a commercial building and lease it to a major chain restaurant in a college town, you might be able to have this successful restaurant share some of its gross earnings with you. If you lease a hamburger or pizza fast food business your commercial property near a college, this may mean significant extra earnings.
When looking for ideal opportunities, pay careful attention to the work being done in and around colleges and universities. Bear in mind that technology and jobs surrounding it are popular in cities like Austin, TX located away from the coastal US regions.
Hello and thanks for stopping. My name is Dave and I’m a student at University of Arizona, studying architecture. I have been looking around in the market, and I have wanted to see the solutions that are present when it comes to commercial buildings. Some were good, and others have not been as satisfying.
I have started to notice trends over time that have stood out, and I think will become stuck in after a while. These commercial building trends for 2016 have been fascinating because they are unique. I think the first trend is the fact property prices are going up while a number of properties is rising too. This is rare and is often a sign the market is booming, and anything will work in the market. This is the best time to get in.
I have also noticed how people are looking at renting more than going out and buying even though the market is ready to take on more owners. This might have to do with a slight apprehension of how the market is going to be in the future, but it is a trend nonetheless.
Among all of the commercial building trends for 2016 I think it is these ones that stand out and provide great results now and in the future for those who pay attention.
Trying to keep up with the trends is hard. My Dad is the owner of a company that helps construct commercial buildings. As a result, he is always heading to seminars, reading publications and joining forums so that he can keep up with all of the things that are going on in the industry. It seems like he is so far behind even though he is always working around the clock to stay on top of the trends. I am a bit worried about it because it seems like he is always stressed out trying to stay ahead of the game.
The main problem is the fact that several other companies have come to the area and the people who run them are a bit younger. My Dad has been in business since the 1990s, but this means nothing when it comes to staying on top of what is hot for 2016. He is planning to retire in 10 years or so, which is why I am not sure why he is really trying as hard as he is to stay current with everything. It seems like he will be gone by the time he gets a firm grasp on all of the things he should.