The Commercial Real Estate market in North America continues to experience steady growth and development. With a strong demand for office spaces, retail properties, and industrial facilities, the market is thriving.
Customer preferences: Customers in North America have shown a preference for modern and sustainable commercial properties. They are looking for buildings that are energy-efficient, equipped with the latest technology, and offer flexible workspaces. Additionally, there is an increasing demand for mixed-use developments that combine commercial spaces with residential and recreational areas.
Trends in the market: One of the key trends in the Commercial Real Estate market in North America is the rise of coworking spaces. With the growth of freelancers, startups, and remote workers, there is a high demand for flexible and collaborative work environments. Coworking spaces provide affordable and flexible office solutions, attracting a diverse range of tenants. Another trend is the redevelopment of urban areas. As cities continue to grow and expand, there is a need for revitalizing older buildings and repurposing them for commercial use. This trend not only helps in preserving historical structures but also contributes to the economic development of the region.
Local special circumstances: In North America, there are certain local factors that contribute to the development of the Commercial Real Estate market. For example, the presence of major tech hubs like Silicon Valley and Seattle has led to a high demand for office spaces in these areas. Similarly, cities with strong tourism industries, such as New York and Los Angeles, have a thriving retail and hospitality sector.
Underlying macroeconomic factors: The Commercial Real Estate market in North America is influenced by various macroeconomic factors. The overall economic growth of the region plays a significant role in driving demand for commercial properties. When the economy is strong, businesses are more likely to expand and invest in new office spaces and retail outlets. Interest rates also impact the market. When interest rates are low, it becomes more affordable for businesses to borrow money for real estate investments. This can lead to increased demand and higher property prices. In conclusion, the Commercial Real Estate market in North America is experiencing growth and development due to customer preferences for modern and sustainable properties, trends such as the rise of coworking spaces and urban redevelopment, local factors like the presence of tech hubs and tourism industries, and underlying macroeconomic factors including economic growth and interest rates.
Data coverage:
Figures are based on value of commercial real estate.Modeling approach / Market size:
Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.Additional Notes:
The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.
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