3 trends in Commercial Real Estate

The U.S. property market landscape is quickly characterized by strong fundamentals, high transaction volumes, and increased investment flows, and the trend is likely to continue through 2017 and beyond. The U.S. economy is projected to grow, with more gains in employment. This was reflected in the unemployment rate dropping to 5 percent in 2016, which increased demand for commercial real estate across sectors.

last updated Wednesday, November 19, 2025
#Commercial real estate #Real estate Industry

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by John Burson

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Many people are surprised that economic growth has not hit the end of the growth cycle, but there is a general indication over the last seven years, and it’s expected that the current process might take just under two years to hit the top.

So, what trends are expected to affect the commercial real estate market in the U.S. this year? Here are three trends to look out for:

The Concept of New Urbanism

The number of boomers retiring is rising, hitting over 10,000 every day. Interestingly, these boomers downsized from their big homes to walkable communities designed under New Urbanism. The trend has existed since the 80s, but has quickly gained fame over the last few years. The planning and development approach focuses on allocating streets to people, not cars. People can, therefore, easily walk to work, schools, shopping centers, or public spaces.

Uncertainties in Retail Business

Online sales were higher than in-store sales for the first time during the 2015 Thanksgiving shopping weekend. This indicates that retailers may begin adopting a showroom approach to improve sales, while others will continue to balance in-store and online sales.

International Investment Opportunities

Overseas investment in U.S. commercial real estate markets is again at pre-crisis levels. Currently, the leaders include China, Norway, Canada, and Singapore. Many real estate investment experts predict that foreign investment will continue to rise as many overseas investors seek transparency and stability in the U.S. commercial real estate industry.

Other sectors that continue attracting investor interest include senior housing and student housing. The trend will likely continue soon as long as the economic fundamentals and demographics point to rising demand.

 
 
 

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