‘Tis the season for holiday celebrations, but, more importantly, ‘tis the season for economists to take a closer look at the data on economic, employment, and real estate trends to create a commercial real estate outlook for the year ahead. When it comes to buying commercial real estate in Chicago and throughout the U.S., it’s important to be aware of the upcoming factors in the market. Here are some of the trends you should look out for in 2020.
The United States is experiencing its longest expansion in history, and, while we saw extensive expansion in 2019, many industry experts expect the market to continue on the path of slow and steady growth through 2020. Many experts believe that current markets and the current economic environment are prime for investment in real estate, as many are looking for safe places to use their money, and real estate is often seen as offering sound returns when compared with other asset classes.
Demographic Trends in 2020
Both baby boomers and millennials are expected to have strong effects on the commercial real estate industry in 2020. Baby boomers will likely impact the real estate industry because they are healthier, living longer, and retiring later. Their healthier lifestyles can have effects on the success of certain investments in the commercial real estate industry.
For those looking into buying commercial real estate in Chicago, millennials will also present an interesting pull on the commercial real estate industry in 2020. Many millennials are beginning to age and move out of the urban core and into suburban areas. However, this demographic is looking to retain the “live-work-play” feel of a big city. In certain suburbs, there is a huge opportunity to cater to this demographic through a significant amount of retail, restaurants, and activities.
An Increasingly Digitized Market
As many baby boomers are inching closer to retirement, newer generations of workers in the commercial real estate industry are going to take the business to a new level of digital. When speaking specifically about the effects of big data on investment decisions, those looking to invest in commercial real estate are presented with a massive opportunity to use it to their advantage.
If you’re interested in more information on the commercial real estate landscape in 2020, or in buying commercial real estate in Chicago, contact Front Line Real Estate partners today.