Yet another good year is on the horizon for the commercial real estate market, according to Transwestern’s 2019 Broker Sentiment Survey, even in light of a few uncertainties. Transwestern queried brokers on expectations for office, medical office and industrial properties.
Respondents asserted that sound job growth and solid consumer and business confidence will again bolster fundamentals in all three sectors. And despite minor concerns, survey participants contend that economic growth will play an ongoing role in commercial real estate’s strong performance.
In the office sector, vigorous economic activity and increased interest rates will spur greater leasing activity, according to 52 percent of the respondents. Tenant walkthroughs and asking rents will also go on the rise, as predicted by 48 percent of the brokers participating in the survey. Office occupants will maintain their focus on amenities and transportation and parking accommodations will top clients’ lists. Coworking space, however, is expected to be quite low on tenants’ list of highly desired amenities, with only 3.5 percent of respondents indicating that shared accommodations will be very important.
Participants in Transwestern’s survey foresee the medical sector experiencing many of the same conditions as the traditional office sector in 2019. Leasing activity and tenant walkthroughs will also increase. Rents will rise as well. A whopping 92 percent of respondents believe asking rents will be slightly higher, and the remaining 8 percent suggest the numbers will be flat.
Like the office and medical office sectors, the industrial sector is forecasted to experience a higher level of walkthroughs and rising asking rents. Overall, 2019 is expected to be a good year for industrial—the property type will garner the greatest amount of investor attention among the three sectors. Seventy-two percent of survey respondents indicate that industrial investment sales will be significantly or slightly higher in 2019, while a respective 54 and 60 percent anticipate a significant or higher increase in the office and medical office sectors.
“Industrial continues to attract investors seeking to weather an eventual recession,” Transwestern notes in a recent sector analysis report. “Indeed, the growth of distribution networks to support e-commerce and last-mile delivery will likely sustain industrial demand for another three to five years.”
Source: CPExecutive
Larry W. Genet is a Senior Vice President in the CBRE, Inc. Miami, FL office. As part of the CBRE platform Mr. Genet can provide a wide range of services from local to Fortune 1000 clients including agency and tenant representation, asset or portfolio management, high level logistics, labor and data analytics prior to site selection, project/construction management, capital markets, owner user sales and valuation advisory services. CBRE is the global leader for real estate services worldwide.
Larry has extensive experience in landlord agency, tenant representation, acquisitions, dispositions and property management. As a third-generation commercial real estate professional and South Florida native, Larry boasts deep community ties, an intimate knowledge of the South Florida market and numerous professional contacts. Larry’s leasing expertise of industrial, office, land, retail and medical properties coupled with his experience in acquisitions and dispositions gives him the ability to represent a myriad of clients in the South Florida market. Additionally, Larry controls a portfolio of 13.5 million square feet allowing him to see every deal in the market. This ensures his clients never miss an opportunity. His knowledge of tenants and buyers in the market is top notch and when coupled with his team's vast portfolio, it's a winning combination.
