Earlier this month we released our Top Trends and Markets to Watch in 2013 Report. Our goal with this publication is to look at trends beyond the largest commercial real estate markets like NYC, Boston, SF, LA and Washington DC. Many of those markets have been in recovery mode, and as a result, future opportunities will likely reside in some often-overlooked markets.
Of course, not every secondary and tertiary market is seeing the light at the end of the tunnel just yet, but if you read through our 2013 Markets to Watch Report, you’ll be able to identify certain factors that could lead to CRE opportunities with upside. Below is a quick overview of a few of the trends we are seeing.
Large-scale infrastructure projects
In 2015, the widening of the Panama Canal will be complete, allowing larger ships to pass through its locks. This has set off a race to dredge ports along the Eastern seaboard. Industrial properties in areas around ports able to receive these larger ships like Miami, New York/New Jersey, Jacksonville and Charleston and Savannah stand to benefit.
Newly discovered gas reserves and recent advancements in drilling and extraction technology have paved the way for significant economic growth and investment opportunity in places like Louisiana, Ohio, western Pennsylvania and West Virginia.
With an aging Boomer population moving into retirement, and generation Y (the Boomer’s kids) facing an extended period of adolescence and underemployment, we are going to see a shift in attitudes about housing. Even if they could take over their parent’s McMansions, they might not want to be in that market. Gen Y (or Millennials as they are also known) are more environmentally conscious and value-oriented.
This is a generation that is attracted to mixed-used developments along transportation lines (not all of them can afford cars when they have the weight of student loans) and nearby retail and entertainment. In big cities like Boston, they are attracted to 300-sf mini-units, with zipcar parking and shared communal space. However, not all can afford big city prices. This presents a good opportunity for those secondary markets with emerging high-tech communities.
With lower costs of living, and lower barriers of entry for new high-tech companies (many of the companies developing apps don’t need to be right in Silicon Valley anymore to attract talent), markets like Austin, Texas; and Florida’s new tech corridor (from Orlando to Tampa) stand to benefit.
These are only a few of the trends that we cover in our 2013 report that may be affecting your local Apartment, Office, Industrial or Retail markets.
Review or download the Sperry Van Ness® Top Trends and Markets to Watch in 2013.
Read more on the 2013 Markets to Watch Report at National Real Estate Investor.
By Diane K. Danielson, Chief Platform Officer, Sperry Van Ness International Corporation.
All Sperry Van Ness® offices are independently owned and operated.