By: Craig Young, CCIM – Partner / Sr. Broker, The Boulos Company
Take advantage of these commercial trends to maximize your profit.
We are still seeing the ripple effect in commercial real estate from the major events of 2022. From the war in Ukraine to rising inflation and spiking interest rates, stakeholders are still trying to catch their breath. However, that means it is the perfect time to prepare for 2023 trends, to take full advantage of the shifts expected in the months ahead.
Lean and Green: More than ever, green building and development are not optional but necessity. Far from a buzz word, environmentally sustainable goals must drive progress, with energy-efficient buildings and low-impact maintenance as key. To stay relevant in the market, investors, builders, and developers alike must pay close attention to their carbon footprint.
Maximize Incentives: One way to return to pre-pandemic levels is to take advantage of the tax credits and incentives available for the commercial real estate sector. As mentioned, energy-efficiency continues to receive incentivized support from the government, but the list doesn’t stop there. Job credits, tax increment financing, Brownfield and health incentives, and real estate tax abatement are just a few of the options that can generate major savings.
Close to Home: The concept of the 15-Minute City is gaining traction. This decentralized approach to development means residents can access all they need, including their job site, within a 15-minute walk or bike ride from home. Location becomes even more important, i.e., suburban access to office space or major tenants like grocery or fitness facilities.
Keep Your Tenants: Close Attracting and retaining key tenants has always been important in commercial real estate, but more so than ever in the current economy. Keeping these anchor or “golden” tenants is a major priority and may see landlords willing to sacrifice rent or providing significant allowances to lock in key tenants to long-term leases.