As a top commercial real estate broker in Greenville, at Spencer/Hines we’re always looking at real estate trends to predict how local commercial property will perform over the next few months, if not years. When working with our clients we frequently bring up a number of trends that Greenville commercial property investors should keep in mind as they make investment decisions. We thought it would be a good idea to outline these tips in a blog on our commercial real estate website.
- The Bull Market Can’t Last Forever – While we’ve been in a strong market for the past 5-6 years, there’s no doubt that this significant upswing in the Greenville commercial real estate market can’t last forever. Because supply is significantly low and interest rates are down, the market is likely to continue to do well, but companies should be aware if these factors change.
- The Rise in Interest Rates – As mentioned above much of the growth of the market has been due to historically low interest rates. As the Fed gradually raises rates it will no doubt have an affect on the commercial real estate market. However, due to the fact that central banks own huge amounts of government debt and pension funds and insurance companies are being forced to own more bonds, a rise in rates will not have the effect that some may imagine. While there is definitely a connection between rising interest rates and lowering cap rates, supply and demand are actually much more important.
- Brick and Mortar vs. Ecommerce – There is no doubt that online businesses have changed the traditional retail landscape. Online retail is growing at incredible rates and people are finding it easier to purchase many things online, especially when they can be delivered in only a few days. The traditional megamall is likely a thing of the past and even traditional retail centers will likely have to change their business models to survive in today’s fast paced marketplace. A model offering a combination of retail and online offerings is likely to be a winner in the years ahead. Traditional retail will still exist even in today’s economy, but store owners just have to work much harder to market their brand among the crowd.
- Growth of Crowdfunding – While the commercial real estate market has just recently entered the wide world of crowdfunding, other industries have been using this type of technology for a number of years. With real estate technology startups popping up all over the place it’ll be interesting to see what the future holds for crowdfunding as it relates to commercial real estate in Greenville and beyond.
- Growth of the Urban Population – The trend to live in close proximity to city centers is continuing to be more appealing to Americans, especially young people. Dense mixed used commercial real estate projects stand to be extremely successful as more people want to be able to walk to where they can eat, work and play.
Interested in Commercial Real Estate in Greenville or Spartanburg?
At Spencer/Hines we’re excited about all of the opportunity that we see in the local commercial real estate markets. If you’re interested in discussing your investment strategy with one of our commercial real estate agents, don’t hesitate to contact our team today at 864-583-1001.