An overview of challenges facing the retail realtors
Writen by Ángela ·
The global economy offers opportunities and threats across different business types. When it comes to commercial real estate, the fact is no different. Coming out of the global financial crisis in 2008, the real estate sector has since been showing an upward trajectory, if not all, but in most of the developed economies. Let’s take a look at two of the many trends in the global commercial real estate market from Morgan Stanley report (2017):
- Real estate sector has benefitted from the declining interest rates in most of the developed countries
- Faster growth in the central and eastern Europe offers repositioning of the office assets to prime locations
That said, what are the different spaces that come under the commercial real estate sector? Retail stores, malls, strip malls, and, office buildings are prominent customers in this sector, performing activities such as leasing, development, investments, and marketing.
What factors impact your commercial real estate investment?
There are factors that are required to be paid 100% attention to, to overcome the difficulties:
1) Technology and Internet of Things (IoT): They are impacting the way businesses operate and create strategies. The digital world in the commercial sector interrupts every aspect from construction to finance and transportation. It is vital for realtors to develop a good relationship with the technological advancements for better profits.
2) The socio-demographic and economic data: this constantly fluctuating metric that entitles several data from population to the unemployment rate, effect a change in the real estate market. How well you know and update the social information helps gain insights into the long term returns on your investment.
3) Similar to the social and economical information, zoning and accessibility play a vital role in real estate investments.
But what are the realtor’s challenges?
Ernst & Young points out that the challenges revolve around planning, delivering and managing the property with a long-term vision, which is a painstaking job in a rapidly changing environment. But the base of all this is choosing a suitable location that sustains the above strategies. This as well consumes plentiful time, money and effort from the realtors making them arrive at decisions based on intuition and past experiences. Though the past experience helps in gaining a first view of the next business plan, it is not accurate.
Is there a solution for commercial realtors to overcome the above challenges and drive their investments to success? Yes, Location Intelligence!
Geoblink provides location analytics for realtors to enhance their leasing, development, investment, and marketing activities. It provides accurate economic and demographic details of a specific location (information updated on a regular basis), list of profitable places to establish a commercial centre and helps organisations to ameliorate their communication and marketing strategies by directing their campaigns to the right target audience.
Location Intelligence is perceived to be more critical than Internet of Things (IoT). Learn what it can do to your business:
Beforehand, presenting a snippet of the European market statistics; according to the information drawn from Property wire, the European commercial real estate investment activity in 2016 was the third highest with a total sales of €207 billion. UK is the largest commercial investment market at €59.1 billion followed by Germany (€52.7 billion) and France (€27.4 billion). The outlook at the end of 2017 also appears positive with more investments expected from the realtors into the European markets.
Thus, with a positive outlook of the European market, we can expect more real estate investments in the future business years. However, what are the two solutions to overcome the above discussed challenges? Follow this space to know them.