Roller coaster rides are thrilling. You get a boost to your adrenaline, the views are great and it’s an enjoyable way for most to spend time with friends and family. Unfortunately, a “roller coaster ride” can be pretty jarring when it comes to your profession or investments.
It’s no secret that the commercial real estate world has been volatile in recent years, to say the least. This has generated lots of negative publicity, but there are still plenty of reasons to be optimistic going into 2024. Let’s take an optimistic look at what has been going on this year for commercial real estate professionals.
1. There Are Plentiful Investment Opportunities
We’re currently in a distressed cycle for commercial real estate, but this is key if you want high returns in 2024 and moving forward, as investment opportunities abound. You’re seeing more and more property owners or lenders being likely to sell instead of letting a property go into foreclosure. This gives CRE pros quite a bit of leverage and presents a unique opportunity for informed investors. You don’t want to pursue every sector out there—offices in particular remain unpredictable—but certain areas like senior living facilities, laundry shops, undeveloped land, parking lots and flex warehouses may be a smart investment idea.
2. Several Sectors Are Performing Well
Just because commercial real estate in general has plateaued in recent years doesn’t mean every sector is doing it. Like any investment, there are winners and losers. Sectors like multifamily residential, industrial and neighborhood retail continue to perform well and should continue to do so. E-commerce, in particular, is an intriguing sector, as it “accounted for 15.6 percent of total sales” in the third quarter for retail, according to the U.S. Census Bureau (and should only rise moving forward). If you’re still hesitant, early identification of the sectors that are stabilizing will put you in position for more informed decisions.
3. CRE Technology Continues to Improve
To efficiently act on these opportunities, of course, you’ll need the right CRE tool in your belt. CRE software like Quarem can give you real-time updates on market data, rates and competitor properties. Build reports or dashboards based on the investment data you want to see and prepare more accurate forecasting models for your investments. Couple that with superb customer support and you have a winning formula going into 2024
4. The Environment Builds Perseverance
At the end of the day, volatile environments result in perseverance and improved character for those who withstand them. With the ups and downs of commercial real estate the past few years, it’s weeded out professionals who aren’t a fit for the industry and made those who have stayed more resilient. This carries value in the long run, as you’ll know what mistakes to avoid and be quicker to identify trends and opportunities than those who haven’t dealt with volatility like this before. Put simply, 2023 has made you stronger – springboard off of that into a strong 2024!
Commercial real estate may be a roller coaster lately, but it’s less so if CRE pros have the right technology available. If you’re ready to see CRE software like Quarem in action and how it can help with forecasting, investments and more, request a demo today.
