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Commercial Real Estate Predictions for 2014

By
Commercial Real Estate Agent with Tri State Properties BROK.0099563782-ACT

2013 was a big year for commercial real estate. A big, big year. After displaying an incredible increase since 2009, 2014 will be a little bit slower as noted by Bob O'Brien, the United States leader for real estate services at Deloitte & Touche. “If you take a look at capital markets activity, (the) improvement in fundamentals, transaction activity, all of it has been very strong over the past few years. We think the industry has really hit its stride, so although we’re still predicting improvement in 2014, we just think that the pace of improvement slows down a bit,” stated O'Brien.

During the conference though, O'Brien did note that the commercial real estate industry is starting to adapt to a new type of market, focusing on smaller office space, retail options for healthcare and new developments popping up at the fastest pace since 2008. “We’re finally starting to see some additions to supply, and we’re starting to see an uptick in development activity,” O'Brien stated. Now seems to be the time for REITs to focus on business intelligence and analytics to more accurately invest in areas and cities that will provide ample R.O.I.

In addition to investing, multifamily sectors have become well established as a reasonable amount of new development is well underway in multiple seperate office markets. Monroe commercial real estate has seen this new development recently as multiple offices, retail spaces and commercial buildings are slowly springing up around the city. With the increase in e-commerce, new development is being driven primarily by these internet businesses looking to expand and grow. Although it is not the 1980s anymore, it is much better than a few years prior to say the least.

What can we look for in 2014? If the end of 2013 is any sign, we should see substantial improvement once again. The commercial real estate market is on the rise, but do not expect as much of a price increase this upcoming year as we saw all through out 2013. 10-12% increase in price is quite a dramatic growth. We should be looking around the 4-6% mark, still a modest change for the commercial real estate market and Monroe commercial real estate moving forward.

 

Posted by

Ryan Roark CCIM, is a licensed commercial real estate broker. If you are interested in commercial properties in Monroe, Louisiana you may contact him at 318-348-5815. His office is located at 1900 N. 18th Street, Suite 319, Monroe, LA. www.MonroeCommercial.com

Comments (1)

Tracy Oliva
West USA Realty - Arizona - Fountain Hills, AZ
The Oliva Team Arizona Agents

Good Morning,  This is some great Info for all in the business,  keep up the good work and good luck in 2014,  E

Dec 27, 2013 12:16 AM