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Commercial Real Estate Outlook

Before we delve into the residential real estate market, let’s quickly examine how things are looking in

the commercial real estate industry.

KEY TAKEAWAYS:

OFFICE

• Job growth continues to fuel demand, but appears to be slowing
down

• Firms’ decision to increase workplace density will continue to
affect vacancy and rent growth

RETAIL

• Demand for retail space continues to be affected by the growth
of e-commerce (amazon Prime: 46% US households)

• Fundamentals “ok” for now, but developers concern about the

future

INDUSTRIAL

• Demand for industrial space remains strong as online shopping

continues to grow

• More supply is needed and developers are optimistic

MULTI-FAMILY

• Sustained job growth continues to fuel housing demand in the
rental market

• Rent growth leveling off as more supply come on the market

24 The Bishop Real Estate Group • www.TheBishopRealEstateGroup.com