Commercial Real Estate investors and both small and large business owners nationwide have a variety of positive reasons to start their commercial construction projects during 2019. With a strong economy and contractors ending 2018 on an upbeat note, there are high expectations are for 2019. Investors are optimistic despite potential risks from the tight labor market and increasing interest rates. Many commercial contractors expect commercial investment prospects to flourish in 2019.
Types of Commercial Facilities Projected to Build and Thrive in 2019
Here are some of the best prospects among commercial building types to invest in during 2019:
1. Retail—Brick-and-Mortar Stores
Online retailers will continue to open brick-and-mortar stores, confirming that physical retail is still alive and well. While online sales continue, brick-and-mortar stores are on the rise, justifying their own online sales even more.
E-commerce retailers will open physical stores to both increase business and keep more customers. Retailers understand the value of an actual physical store, realizing they can’t just rely on online customers for the long haul. In 2019 we are expected to see:
- A reinvesting in the brick-and-mortar store
- New strategies to draw people into the brick-and-mortar stores
A brick-and-mortar store offers investors and business owners:
- Profit margins
- Face-to-face customer interaction
- A variety of opportunities to gain new customers
2. Affordable Housing
The job growth in the U.S. is creating a need for affordable workforce housing in major cities. The desire for housing located in close proximity to work and the appeal of major cities creates a clear demand outrunning the supply. In 2019, vacancy rates are expected to be low, and higher yields are anticipated, setting the perfect stage for rental growth in major cities.
3. Warehouse Development
Like Europe and Asia, the U.S. is now building multi-story warehouses. Seattle, San Francisco, New York, Miami, and Chicago all have multi-story warehouse facilities, and the trend is expected to spread throughout the country. Since there is less land available, and with the influx of e-commerce, more warehouse space is in demand. Building up instead of out solves the land and space dilemma, but operational issues may require new solutions due to a new hurdle presented in moving inventory into and out of multi-story warehouses.
The hotel industry is expected to break records this year with their occupancy levels, marking their 10th consecutive year of growth. Some challenges may present themselves due to the number of easy-to-access apps connecting consumers with discounted hotel rates.
5. Multi-Family Residential
Commercial Real Estate investors who embrace the opportunity to take an active role in growing their capital—rather than putting their money into a fund to be managed by someone else—are favoring multi-family assets. Investors embrace the opportunity to invest in everything from apartments and duplexes to quadraplexes and townhomes as a wise multi-family residential asset. Since interest rates are rising, the need for new multi-family residential units is rising as well because at this time, some individuals prefer to rent rather than buy a home.
6. Assisted Living or Retirement Homes
Due to major improvements in healthcare services, medical research, and healthcare coverage, the average expected lifespan of Americans is higher now than any other time in our history. With more seniors living longer, many are turning to assisted living communities and the convenient offerings of multi-level care retirement communities.
Quality builds with wheelchair accessible doorways, bathrooms, and counters are vital for the current and future needs of seniors. This is an attractive time to consider building an assisted living community or multi-level care retirement community.
4 Solid Benefits of a New Commercial Real Estate Building
1. Enjoy the Freedom to Customize Your Building to Suit Your Needs
Building a brand new piece of commercial real estate gives you the freedom to choose the optimal size of your building with the specific floor plan and features you need in the best location.
2. Get Prepared for the Long-Term Needs of Your Business or Commercial Real Estate Property
Overall, a new building will work for long-term needs, while an old building may not. Customizing your new build to meet the needs of your business will prepare the building to support your specific operations for the long-term. And your processes within the building can be streamlined due to the optimal architectural design implemented.
3. Optimize Public Relations Opportunities
Constructing a new building will also provide a vast number of public relations opportunities for your brand, so take advantage of the moment to advertise your business while you build.
4. Long-Term Benefits of a New Commercial Building Outweigh Upfront Costs
Of course, a new building is usually the most expensive option upfront due to the need for designing, planning, material choices, construction crews, and land purchase. But the long-term benefits often outweigh and outlast these upfront costs.
Commercial Construction, Design, and Remodeling
Construction by Daniels, a Tulsa-based professional general contractor who serves clients nationwide, specializes in commercial construction services:
From the inception of each construction project, the bright professionals at Construction by Daniels work as a team to:
- Design your building to fit your needs
- Work within budget
- Complete your project on time
Every construction project is accomplished with the same client-oriented approach from everyone from project managers to administrative staff. With Construction by Daniels, each construction project moves from concept to completion with excellence in every detail.
Construction by Daniels serve business owners on commercial construction projects offering
- General Contracting—We provide general contracting services throughout the country.
- Construction Management—We help manage your entire construction building project.
- Design-Build Services—The architect and contractor work together as a team, combining strengths for a unified goal.