It is no surprise that the real estate industry has been a hot topic. The industry has been surrounded by topics such as the rising interest rates and the popping of the real estate bubble. The commercial real estate market is currently worth 21 trillion dollars. Even with this impressive number office vacancies increased from pre pandemic to post pandemic. Looking specifically at San Francisco the office vacancies pre pandemic were at 6%, this rose to 15% in 2022. If the statistics show that commercial real estate is suffering then is investing in this industry a golden deal or a dead end?
Commercial real estate specialists focused in Orange County, New York, dug into this question to find how it applies to the state. What was found was that office spaces seem to be the most effective area of commercial real estate. Other sections of commercial real estate are still strong and in New York Luxury retail has helped with this increase. Brands such as Givenchy, Hermes, and Gucci have all acquired commercial real estate in this area.
There are many different types of commercial real estate, and New York offers them. Some of the commercial real estate that can be found include retail, industry, hospital use, and multifamily use to name a few. This multitude of commercial real estate offers New York many possibilities to fill these spaces. This also provides their economy with multiple opportunities to grow, either from retail, housing, or industrial.
With the United States still sitting in a bear market many investors have held back with their investments, this includes those of commercial real estate. However; investors believe there is still hope for golden investments in commercial real estate. There have been noted opportunities in New York for landlords to convert empty office spaces into residential units along with the demand of industrial space due to supply-and-demand. While there may have been setbacks in the commercial real estate industry it seems there is still hope for golden investments.