Real estate investment is in a constant state of flux, but it’s sometimes possible to identify long-term trends and leverage them to increase the value gains in your portfolio. Here are four developments to watch in real estate.
1. Retail Transformation
More people and businesses are changing their shopping habits, leading to a huge shift from brick-and-mortar stores to online purchasing. For investors and risk management experts like Paul Daneshrad, this means industrial investments like properties designed for logistics and last-mile distribution may become increasingly viable options. People are ordering everything from electronics to pharmaceuticals and even groceries online, so it makes financial sense to get involved with properties that facilitate these services.
2. Repurposing Spaces
Because so many retail stores are closing, we’re left with empty shopping complexes and malls. As even the major retailers have continued to buckle, cities may realize they can benefit from repurposing the properties and potentially even rezoning them to allow for greater flexibility of use. Looking at properties located in former shopping centers can mean an investor is the first in line for a potentially profitable space for something entirely different, like housing. Some experts are pointing to malls as the next frontier for affordable housing, for example.
3. Viability of Sustainable Solutions
Sustainability is beginning to make more and more sense from a financial standpoint in practically every industry. Energy efficiency has come to the forefront for property investors for a number of critical reasons. More major companies are going green and adopting alternative energy, and the cost of energy-efficient project installations continues to drop. Additionally, tenants individual and commercial are more interested than ever in reducing their bills and lowering their carbon footprint, making green building upgrades an investment area ripe for growth.
4. Growing Tech Integration
Real estate, especially the commercial vein, typically responds slower to technological developments than other sectors. However, there are more digital property management solutions available than ever before, and property investors should take note. These solutions can automate basic tasks, allowing staff to spend valuable time on other crucial work, and enticing tenants with a greater range of payment options and shorter payment processing times.
Although many investment conditions are changing, some things always stay the same. Paying attention to trends is important and can give you a leg up on slower competition, but consulting experts and putting in the time to do your own research are always the cornerstones of a smart investing strategy.
Laila Azzahra is a professional writer and blogger that loves to write about technology, business, entertainment, science, and health.