During pre-covid times, real estate investments were synonymous with buying homes or vacation rentals. But this trend shifted with the global pandemic. As remote work became an attractive option for many, it initiated the sub-exodus, or the transition from compact city centers to sprawling sub-urban neighborhoods. As commercial real estate owners worried over increasingly vacant spaces in the retail and hospitality industry, investors and tenants were compelled to reimagine how spaces should be used.
As the months wear on toward 2021, certain trends are becoming clear. The real estate market is evolving to address growing demands in both residential and industrial real estate. Not only is this big news, but also a hot topic in various social media channels.
Real Estate Investment Trends
All you need is to check out this real estate investor forum and you’ll see investors eagerly exchanging ideas where and how to grow your money. Curious as to what their conversations could be? Read on to know how the emerging trends in real estate this 2021 guide their decisions and how these could turn into investment opportunities for you as well.
- Suburbia And Sunbelt Sites
Remote work and in-home schooling due to Covid-19 lockdowns have prompted workers to seek lower rent and wider spaces in the suburbs. In the United States, the suburbs are seeing a surge of out-of-state guests–either as home buyers or renters–looking for single-home family units and manufactured housing.
Investors can take advantage of this booming residential market and even specialize in certain housing segments. You can choose to concentrate on a specific residential property type or consider a location in the sunbelt market.
The southern areas of the United States–South Carolina, Texas, Florida, North Carolina, Georgia, Arizona, New Mexico, Texas, and Oklahoma–are currently showing real estate investment potential. And, it’s not just because of remote work orders due to Covid-19. These areas boast a diverse range of economic industries, low property taxes, and a lower cost of living. Add in milder winters and sunnier summers, and this can serve as an attractive real estate package for both investors and interested buyers.
- Restructuring Commercial Spaces
While the housing market remains strong throughout the pandemic and into 2021, the opposite is true for commercial real estate. Owners and tenants had to close for the meantime, allowing employees to work from home until such time that vaccines will become available and travel restrictions would ease.
Now that almost everyone is vaccinated and local authorities will now allow the opening of commercial and business centers, the challenge is for them to prove that people can still benefit from visiting or working in person.
Apart from enforcing safety protocols, offices need to offer more than clean workspaces. They would need to provide collaborative areas and offer valuable amenities to promote employee well-being, company culture, and even combine work and leisure.
Those who maintain their commercial properties may soon open their doors to workers and tenants. Hotels, office buildings, retail, and restaurants can still recoup their losses, but they would need to improve their building infrastructure to ensure the safety of everyone. Improved HVAC systems, touchless entry, sensors, and contract tracing apps can ensure establishments remain safe from Covid and other diseases.
- Emphasis On Sustainable Properties
Besides changing demands and demographics, sustainability is another emerging trend in real estate. Homes and buildings transcend their usual purposes of shelter and protection to provide homeowners and tenants with additional amenities that make them healthier and more productive environments.
Energy-efficient systems, such as lighting, heating and cooling, etc., continue as home and building essentials. Smart technologies that monitor and adjust the environment according to the needs of its inhabitants will make homes and buildings livable and healthier.
In addition to technologies, integrating trees and plants into building designs make structures not only improve aesthetics but also act as natural barriers to heat and pollution.
- Industrial Properties As Attractive Ventures
Increasing demand for industrial properties is another emerging trend in real estate. As e-commerce requires additional space for product storage and fulfillment processes, such as packing, sorting, and delivery, warehouses and stock rooms are on the rise.
Apart from distribution centers, investors can also tap into the potential of industrial real estate. Data centers, mobile towers, and medical offices serve as lucrative investments for those who desire to diversify their real estate portfolio.
- Use Of Property Management Tools
Investors can choose to concentrate on one type of real estate or have several to diversify their portfolio. Managing real estate, whether as a landlord or as an investor, can be challenging, especially when it’s scattered across several locations.
One way to manage your property is to integrate real estate investments to handle debts and liabilities. A hands-on approach allows you to make informed decisions regarding your investments. You can also use software to manage rentals and other related activities.
Another is to employ a property management company to handle rent collection, undertake repairs, and other issues. This is a favorable route for investors whose properties are dispersed and who want greater freedom to pursue other interests.
Conclusion
Good investors rely on trends to tell them when and where they should place their money to gain profit. When it comes to investing in real estate, they can look at emerging trends to help them make crucial decisions.
As outlined in this article, investors can look to investing in the housing market in the suburbs and in sunbelt cities as this is where the bulk of remote workers and their families are relocating. On the other hand, those who maintain commercial spaces can now resume their operations, albeit with strict adherence to safety protocols. This is to ensure that work and leisure spaces remain as healthy environments where people can interact and remain productive.
With regards to industrial spaces, investors can convert existing spaces into warehouses, data centers, and fulfillment locations to address the demand of e-commerce. Besides providing crucial spaces for work and business, buildings should also include sustainable features that respond to the needs of tenants, guests, and workers.
While investment opportunities abound in 2021, investors can use property management tools to help them effectively manage their investments.
About Carson Derrow
