Commercial real estate agents are feeling optimistic about the market this year.
According to CIT’s Commercial Real Estate Outlook, 52 percent of commercial real estate agents who participated in the survey believe the commercial real estate market is strong or very strong. Nearly half agree or strongly agree that the commercial real estate markets in the country are in recovery.
What are driving commercial real estate investments? Agents think interest rates, consumer confidence, global economy, unemployment and tax rates.
Although 55 percent believe technology is revolutionizing the industry, only 11 percent rated themselves as leading edge when dealing with it. Half of participants believe they are benefiting already from the latest commercial real estate technology, while 45 percent said new tech entrants are impacting their business. The top two most-used technologies are sophisticated data analysis and mobile and tablet apps, according to the survey.
Nearly three-quarters believe that “adequate” capital is available for investing, while nearly one-quarter believe that capital is available for the “right” deals. Both state and local governments offer incentives like tax credits, and 36 percent of agents said that state and local governments are offering more in terms of tax credits, cash grants and related business incentives, while 44 percent believe they are negotiating more to receive said benefits. However, nearly one-third said at least one of the segments they work with has a lack of supply.
Generally, participants viewed trends such as brick and mortar stores as showrooms, fulfillment centers and clicks to bricks and low-income housing integrated with affluent housing as positive.