Commercial real estate involves any property owned to gain income. In the United States, the commercial real estate market is valued at about $6 trillion, forming an integral part of the economy. The industry consists of companies that own industrial, commercial, and multifamily residential properties or offer real estate commercial services such as renting, managing, leasing, consultancy, buying, and selling in real estate.
The Commercial multifamily real estate sector in the United States is booming. More than 2 million new apartment units were constructed over the last decade, with no sign of slowing down in the recent decade. The force driving the massive construction growth is the increased demand for rentals within major U.S cities. With such record-breaking needs, real estate experts led by J. Scheel Scott see a guaranteed opportunity for investors in multifamily housing. Scheel is a two-time Street Wall Businessman of the year award winner with over 23 years of experience in the industry. A self-taught businessman, influencer, constant real estate expert, and innovator, Scheel sees the industry as dynamic with new and never-ending trends.
Some of the trends in multifamily real estate include;
The American economy has been booming over the past decade with an unemployment rate of 3.6%, the lowest figure ever since 1969. More than 20 million new jobs have been created across the U.S. with increased wage rates. The majority of these new jobs are within the urban centers driving demand for rental apartments. With the increased wages, the new millennials have more money to spend and are willing to pay higher rents to get better features.
Modern complex amenities
According to a research report on the recent emerging real estate trends, there is a huge demand for properties with modern amenities. Tenants nowadays push for a more robust amenities package that goes beyond the standard multifamily suit. This push has resulted in investors creating an inviting space that goes beyond the standard drab room. Some of the new features to entice new renters are;
- Communal Spaces
- Smart-home Techs
- High-end Security
- Parcel lockers
Apartments are going green
The desire for living green among renters has been rising, with everyone wanting to impact the environment positively. The new modern apartments are coming with some green features to obtain energy efficiency certification. Some of the green features they incorporate are; healthy indoor air, decreased waste, energy efficiency, solar panels, and clean water.
Increased diversity and Inclusion
Over the years, America has continued to become more diverse. This diversification of the people has led to the growth of a diverse renter pool. Renters now prefer living in a multicultural community that hires and support the immediate local community. They also want an organization that provides equal rental opportunities for minorities. Diversity and Inclusion are essential pillars of establishing recruitment and retaining plans for a residential community.
Continued surge of new multifamily construction projects
Even with the pandemic’s economic impact still visible, multifamily construction projects are rising. Surprisingly, investors are still pumping money into new housing projects. In 2020, more than 370,000 new units in the multifamily buildings were developed, a number that doubled 2019 figures. The real estate experts foresee even great numbers in 2021 with the number of new house projects’ continuing growth.
The U.S real estate market is ranked as the world’s best for its innovation. With more housing demand being experienced in the urban centers. We can be assured of new trends as the market keeps on evolving.
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