If you are in the market for commercial real estate, then you know that keeping up with the market is a complicated, but ultimately necessary, undertaking to ensure that you are receiving returns on your investments. While the real estate market across all sectors can be tricky and fickle, the experts at NAI Isaac keep close tabs on rising and falling trends to make sure that our clients are fully prepared to buy or lease their own commercial real estate. Keep reading to learn about commercial real estate trends to watch in 2019 near Lexington, KY.
Commercial Real Estate Market Trends for 2019
After years of continuous, rapid growth, our economy is reaching its largest period of stalling, and possible downturn, since the 2008 financial crisis. This does not mean that you should forego investing in commercial real estate, however. What it does mean is being aware of the limits that currently exist when it comes to pricing, particularly for the rent that may be imposed on potential business tenants. Many demographics are reaching a cap for what they are willing to pay, so when you are choosing your commercial real estate, be sure to walk the line between intended profits and reaching your target market’s breaking point.
After the middle classes fled en masse to the suburbs in the middle of the last century, Millennials and the first group of adult Gen Z kids are rushing back to the cities. Because of this, one area where profits continue to be viable is in metropolitan areas, which is one reason why commercial real estate is such a booming market here in Lexington. When you purchase or lease commercial real estate in a city, you can guarantee that you will either easily find tenants to lease the space from you, or find a steady customer base for a business you intend to open for yourself, something that is harder to come by in the suburbs and rural areas.
No longer does the internet exist in a separate space, accessible only from our home computers. Now it is with us everywhere, in our phones, our watches, our jewelry, and exists practically everywhere we go. Consumers are starting to expect the ability to interact with spaces digitally as well as physically for added convenience, as well as a more enriching consumer experience. Because of this, make sure any spaces you are interested in either include or can be upgraded to include digital infrastructure. Particularly for consumer businesses, fighting to keep brick-and-mortar relevant in an Amazon age can be tough, so make sure your space is up to the task.
The real estate market can be a daunting place to explore, so make sure you have a team of experienced guides to help you. Contact NAI Isaac today to learn more. We are conveniently located in Lexington, KY, but we also proudly serve the surrounding area.