For those keeping a closer eye on new investment opportunities, commercial real estate is often a popular choice among many. To stay in the know, realtors have collected the data to see the latest opportunities and trends for the year 2023. To start, data centers and industrial real estate are expected to be the most resilient for the coming year. As pandemic restrictions are petering out, we can expect the hotel sector to continue to recover in due course. Concerning that, office occupancy may jump by 10% as employers demand workers return to their desks – but the phenomenon may be short-lived with the idea of remote work becoming a more attractive post-pandemic work style.
The persistent housing shortage and high demand for suburban homes will continue to draw in multifamily investors for things like apartments. Dynamic pricing on a lease-by-lease basis will involve improvements and concessions for office space. Office and industrial tenants are looking for new or reimagined spaces with large windows, full amenities, and greater open space to foster collaboration. These trends also lend themselves to new opportunities. As of this year, landlords are considering converting empty office space into residual units. This means demand for industrial space could continue due to supply-demand imbalances and low land supply
However as there is no such thing as a free ride, it is also good to look into the obstacles and challenges that this market will be facing, especially during these economic times. For one there is uncertainty in the market. Many investors are pausing investments and waiting for the market to correct them. However, the US is widely considered a stable market with good growth prospects. Compared to other regions, America outperforms by 10.4% per year. Overall, the market is waiting to see if we are about to see opportunities, or if it will take 6 to 12 months.