Owning to Renting While younger people, like Millennials and Gen Z, dominate the rental market, Baby Boomers are encroaching on this territory in 2019. People often go where the job opportunities are therefore places outside and around metropolis cities like New York are hotspots for professionals in the rental market.
Residential New Construction While communities are always evolving, right now places like New York City are experiencing a peak in new development. With Google and Amazon announcing plans for campuses in NYC, owners are going to be renovating properties to meet the heightened demand in the residential market.
Emerging Suburbs Development of large city suburbs usually starts in their downtown area. In 2019, we’ll see this continue and expand throughout other parts of the suburb as well.
Unique Amenities There’s a growing emphasis on experiential amenities being part of the rental experience. This is a new and evolved demand that is independent of the typical gym or pool being offered as an amenity in the rental market.
Integration of Artificial Intelligence As AI continues to develop and emerge in different industries, in 2019 we’ll see a rise in AI technology especially in the residential rental market for purposes like building and tenant management, and security.
Restructuring of Brick and Mortar Right now there is an emphasis on experiential interactions with consumers. Like outlined in the evolving amenities offered in the rental market, consumers are looking for non-traditional amenities that provide some sort of experience. This holds true for retail as well. In 2019, we’ll see store focus less on expanding through increasing store sizes and focus more on honing some sort of experience for consumers that sets them apart from the competition. This will lead to a change in the number of new commercial lease and how these leases are written and executed as the need changes.
As part of the Tax Cut and Jobs Act of 2017, Opportunity zones were implemented as a way to cultivate investment in certain areas. Opportunity Zones are identified parts of communities that allow tax advantages for investments made within those designated areas. In 2019, the hunt for lucrative investments in these designated areas will persist.
Rising Interest Rates
Interest rates have been rising throughout the past year. As we move into 2019, we’ll see this trend continue. With the economy in the stable position that it is, we’ll probably see rates continue to rise at the Fed’s way of insulating the economy from overheating.
Increase in Multifamily Investing
Over the past year, we’ve seen multifamilies become more and more popular of an investment method. Right now, multifamilies are the best-selling asset of their respective major property class. In 2019, we’ll see this trend continue to flourish and we’ll see investors meet that demand.
When it comes to commercial real estate, we’ll see an evolution in the visual aspect of listings. High-quality imaging of properties will take charge in 2019 as a way to capture consumer attention. This means professional photographers, more intentional pictures and videos of spaces, and drone shots.