4 Real-Estate Trends for 2016
Digested from 2016 Real Estate Trends
Yardi (12/18/15) Cutright, Elizabeth
Following a strong performance in 2015, the apartment industry is eager to see what 2016 holds. Four major trends for the year ahead highlight the markets overall sentiment of cautious optimism.
Based on a report from PricewaterhouseCoopers and the Urban Land Institute, the next two years look very favorable for real estate. Here are four trends the report predicts will play out next year:
- More than 9.7 million square feet of office space will be added to the commercial real-estate market in the coming year. Many of these commercial spaces will have more contemporary designs to attract millennials who desire a more modern work environment.
- Secondary markets, such as Austin, Texas; Charlotte, N.C.; and Denver, are experiencing population growth, and restaurants, shops and other businesses in these cities are expanding their operational schedule to adapt. This is making these cities increasingly attractive because they offer the same lifestyle amenities as larger metro areas but at a lower price point.
- Suburbs are becoming increasingly attractive, especially to millennials, because of job growth and family-oriented lifestyles.
- 2016 will be the year of energy-efficient retrofits in everything from senior housing to medical offices. Urban agriculture, increased infrastructure spending and less parking lot construction are contributing to a greater focus on sustainability as well.