Technology isn’t just changing the way savvy real estate investors are finding distressed multifamily, office, and retail properties. It is now literally changing the map, altering real-estate cycles and where the hot spots of the future will be, too.
Top tier commercial real-estate markets may have stayed buzzing through the last couple of years, but they clearly may no longer be where the best opportunities or cap rates lie.
Recent data has already been revealing the best cap rates, and investment opportunities have been found in secondary or tertiary markets around the country. Yet, this doesn’t even begin to touch on the difference and growth some of the markets are set to see from new advances in technology.
Technology developments in the realm of communications and trends in remote employment are an even bigger game-changer. No longer are we just talking about outsourcing call center agents, low level data entry tasks, or virtual assistants offshore, but remote working, even at the highest levels, as the norm in many industries.
This means eliminating the need to stay or flock to Manhattan or Silicon Valley to ensure business success, to secure funding, or to be able to draw on the best talent. This will change population migration patterns and the location of the hot business hubs of future.
Perhaps this is not so much applicable to industrial space, but certainly finding distressed office, retail, and multifamily properties which stand to see the biggest gains over the next few years.
Watch these trends or help forge them and lead the pack, while your investments produce stellar returns.