It’s hard to believe, but it’s true: the 2010’s, a decade that never felt like it was going to end, is finally over, and the 2020’s are here. Each decade has had its own character and flavor (just have a think back to the 1980’s for proof), and while it’s impossible to know how the 2020’s will feel from this point, we can take a look into the future for the commercial real estate industry. Like all industries, we are able to look at the past and present to project patterns that will persist into the future, and keeping abreast of these trends is incredibly important if you are planning to invest in commercial real estate this decade. Because of this, keep reading to let the team NAI Isaac tell you about important 2020 commercial real estate trends for clients near Lexington, KY.
Trend #1- Shifting demographics
As time is passing, we are seeing traditionally dominant groups of buyers – namely the Baby Boomers – starting to wane in terms of market importance. Many Baby Boomers have already passed their prime buying years and are starting to spend less money as they leave the workforce. Because of this, one of the biggest 2020 commercial real estate trends is to keep an eye on younger generations as they gain prominence, specifically Generation X and Millennials. These groups have different tastes and buying patterns than previous generations, with Millennials particularly breaking from past trends, so to ensure that your business will flourish, set aside time for demographic research prior to buying or signing a lease.
Trend #2- Steadily growing economy
While we aren’t expecting any boom in the next year, one of our most exciting 2020 commercial real estate trends is that the economy is expected to grow nearly across the board well into the 2020’s. The growth is expected to be fairly steady, which makes now the perfect time to invest in commercial real estate if you have been wondering when the right time is for you and your business. Market trends are just one of many factors that go into your decision on whether or not your business is ready to transition into a brick-and-mortar storefront or a physical warehouse or manufacturing center, but if you are waiting for the perfect moment, this might be it.