The world of investing in real property remains robust in Massachusetts, leaving many investors excited about remaining active in this field. But what exactly does the future of commercial real estate investing look like? Here is a rundown on a few trends that investors can expect to dominate next year.
First, more investors in commercial real estate will likely bypass primary metropolitan areas in the United States to place their bets on assets located in growing secondary markets. At the moment, secondary markets are enjoying growth in the double digits. They are also enjoying more robust price increases compared with primary metro markets. Of course, if the economy starts to slow down, investors might return to primary markets — mostly coastal markets — simply because they are larger and more liquid.
Second, with retail stabilizing this past year, real estate experts expect retailers to start reinvesting in physical buildings in 2019. This will enable them to achieve an omnichannel-buying experience for today’s consumers. Likewise, companies that exist only online — also known as digitally native retailers — will focus more on opening physical stores so that they can grow their businesses as well as retain customers.
The demand for assets in the United States is expected to keep the volume of commercial real estate transactions strong. This includes both sales and leasing. Of course, both of these activities can be confusing for investors who are not familiar with them — for instance, investors who are just starting to get their feet wet in real estate. However, an attorney can provide them with the direction they need to successfully complete these types of transactions in Massachusetts.