Three Macro Trends in Commercial Real Estate

For 2018 we wanted to point out three macro trends in commercial real estate that are becoming increasingly relevant to our clients:

  • Wealth Transfer – The wealth transfer “wave” is growing like a tsunami with trillions of US dollars are anticipated to be transferred from generation to generation over the next 5 to 10 year period. A good portion of this wealth transfer is associated with tangible assets including commercial real estate. Effective wealth transfer strategies are becoming increasingly imperative to address issues associated with real estate transfers and family dynamics.
  • Building Modernization & Technology  – Technology is shifting The commercial real estate landscape rapidly and owners are recognizing that they need to get up to speed quickly on modernization strategies because tenants are demanding these upgrades. Yes, modernization and efficiency costs money but these strategies can be the catalyst to attracting and retaining tenants, yielding operational efficiencies, and leading to financial ROI.
  • Taxes, Taxes, Taxes  – Tax reform has been the big elephant in the room for commercial real estate owners. Our team is constantly working with estate planning advisors to develop effective transition plans with commercial real estate portfolios that help to mitigate tax impact for the next generation of families that inherit these assets.