Commercial Real Estate Market Changes

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Keeping up with the real estate market over the last four years has been a tall order! Vast changes in commercial space use, interest rates, and rising inflation have affected business operations across the country. Lakeside Title Company has you covered on what’s in store for the commercial real estate market for the coming year.

What to Watch for in 2024’s Commercial Real Estate Market

With the forecast for interest rates to drop slightly, and inflation beginning to ease, we anticipate the commercial real estate market to be more level and predictable in 2024.

Below is a quick overview of the four main sectors of commercial real estate:

  • Creative Uses of Vacant Office Spaces
    The surge in remote work inspired companies to rethink their physical spaces and their policies on in-office time. However, with employee mandates to return and a reinvigoration of face-to-face business culture, we expect an overall normalization to happen in office space real estate this year.
  • Multi-Family Real Estate Reaching Overall Stability
    New construction of multi-family units has increased in the last few years, which has made the vacancy rate increase slightly. However, with new home purchase costs rising and a limited inventory of homes for sale, multi-family units will continue to benefit in 2024.
  • Industrial Real Estate Leveling Off
    The industrial sector has been one of the most productive sectors in the last few years, with companies returning to the U.S. and e-commerce warehouses aiming for faster shipping. While the predictions vary, Phoenix Investors expects industrial real estate to stabilize this year.
  • Retail
    While many have been wary of retail real estate with the rise of e-commerce, the sector has performed well. Vacancies of retail spaces are low and demand is increasing, making it a stable supply and demand market, according to this Real Estate Investment and Market Analysis.

Lakeside Title Company is here to assist you with your real estate investment questions! Contact our team today to have a conversation about commercial real estate possibilities.

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