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New Trends in Commercial Real Estate – Where to Look for Your Next Investment

December 9th, 2020

Similar to the stock market, investing in real estate should be done with your long-term goals in mind. Sure, you can find deals and flip them for a quick and easy profit. However, they aren’t readily available. Instead, choosing to buy and hold, or lease out can create a profitable portfolio that you can hand down to your children and grandchildren. The year 2020 has turned the whole world on its head, and you may question your investing decisions and wonder what you should do next.

Get a grasp on the commercial real estate market when you speak with our knowledgeable team at The Estes Group. We keep a sharp eye out for the trends so that we can serve our clients better. Whether you’re looking to sell or acquire a new property, lease out warehouse space, or find your next multi-family property, we can help.

Growing Areas of Commercial Real Estate to Consider  

There are investment opportunities everywhere. One article in Business Insider listed the various sectors within the market and how they’re faring. Here are three areas experiencing the best of the pandemic’s fallout that they discovered:

  1. Lab Space – The pandemic brought the need for new testing and vaccines, resulting in higher demands for laboratories. Demand may be high, but you may lose out without a knowledgeable commercial real estate broker helping. However, if you find the right deal, your portfolio will grow.
  2. Data Centers – Our technologically-demanding world continually sends and receives data. Think of all of the video and audio streaming happening or the cloud-based storage used. Companies need a place to house those servers.
  3. Ghost Kitchens – This new phenomenon is an area for professional food preparation and cooking for delivery-only meals. Think of it as your favorite restaurant without the dining room or wait staff. COVID-19 has brought on a new concept in eating out.

Areas Being Hurt by the Pandemic

Not every area is booming. Here are three sectors struggling to make it through:

  1. Large Retail and Office Space – As some companies packed up their offices in exchange for remote working, large office buildings lost some tenants. Some companies see the potential for when in-person collaboration can resume. Until then, retail and office spaces are feeling the effects.
  2. Hotels and Casinos – One of the first areas to feel the pandemic’s full brunt is the hospitality industry. As states open up, travel is tentatively resuming; however, it may be too little too late.
  3. Student Housing – Colleges across the country quickly shut down and went to online learning environments in March of 2020. While some opened back up for the fall semester, many colleges plan on sending their students home for an extended holiday break and resume online classes.

Find Your Next Best Deal with Help from The Estes Group

Continue building your portfolio with help from The Estes Group, Jackson’s trusted commercial real estate broker. Our team is dedicated to listening to your needs and finding the right options to fulfill your goals. Not only do we service Mississippi, but we can assist with properties in Alabama, Tennessee, and Louisiana. Let’s talk!

Call us at 601-362-9633 or contact us online to discuss your real estate goals with our knowledgeable and experienced commercial real estate brokers. We’ll help you research, choose, and purchase a commercial investment property that delivers the best return on investment.