2014 is the year when real estate markets will recover through the help of the stable growing demand for commercial real estate properties. This claim is based on the joint research of Pricewaterhouse Coopers (PwC), the world’s second largest multinational professional services network, as measured by 2013 revenues, and Urban Land Institute (ULI), a nonprofit research and education organization on land resources conservation.
Based on the research, the commercial real estate market has reached an inflection point wherein valuations will not be driven any more by capital markets. The research also revealed that the economy recovery can propel market rebound, though it remain to be at a slow pace and while its growth drivers in the commercial estate market may not be earth-shattering.
It was noted by one fund manager who was a participant in the research conducted, that 2.5% gross domestic product growth during the second quarter of 2013 may not be that important and significant but it is enough to help boost and stimulate the real estate demand.
Another participant in the study which is an economist had said that a new paradigm is being developed. The paradigm is not that kind of typical recovery that economists have seen before nor what was expected such as 250,000 new jobs in a month. It is a recovery with only just 100,000 and plus jobs a month.
The top revenue drivers identified for the commercial real estate that was identified in the research were occupancy and rental rates, and property enhancements.
On a research entitled “Emerging Trends in Real Estate 2014”, it gave discernments on issues and trends that dominated the real estate market across the United States, Latin America and Canada. PwC and ULI had conducted a survey over 694 individuals and were able to interview additional 377 more participants from the real estate sector for the research.
The participants of the research were hailed from diversified entities that cater to the real estate market which include the private property investor and developers, real estate consultancy firms, asset managers, banks and lenders, REITs and publicly traded companies.
Mitch Rochelle, PwC real estate advisory practice head and co-founder, shared in an interview with Fox Business, that the positive sentiment for the commercial real estate was up to 18% in 2010 to 68% in 2014. He perceived that is the most positive and strong the commercial real estate can improve. Also, He had noted that commercial investments are expected to rise as well as the result of the uptrend. He sighted that warehouses, office developments and new retail establishment projects are also expected to spring out to support the growing communities as an offshoot of the trend.
Online marketing platforms are very beneficiary to real estate agents to reach their target audience since more and more people shop around for new properties to acquire or lease. RealBiz Media (OTC RBIZ) is one of the few companies, that offers marketing tools for real estate agents and brokers to be able to meet the growing demand in real estate. One of its primary product, Nestbuilder, is used by over 350,000 real estate agents in the US to be able to create an interactive listings and to be able to establish a network with other real estate sales professionals and buyers. Through its virtual tour program, the real estate agents were able to give would-be homeowners and renters a tour of listed properties without leaving their offices or houses.
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