Have you noticed that everything is getting more expensive? The same forces that are driving up costs for the average citizen are also driving up costs for commercial real estate, especially in terms of supply chain shortages that are causing significant price spikes in essential materials. 

Climate change, far from an idle threat, is in full view in Charleston, S.C. where “sunny day” flooding occurs at least once a week, according to The New York Times. Despite this, the city is seeing historic population growth and developers are taking notice. Developers are well aware of the flooding risks but choose to build in Charleston anyway. The truth is, climate change is a global problem, not a regional one, and commercial real estate investors will soon need to make it one of their primary considerations.

There is something happening in the commercial real estate industry that just drives me crazy: It’s the perpetuation of false information by those who should know better, or as I like to call it, Big Broker Bullsh*t.

As the world eases out of remote working mode there are sure to be many other gaffes committed by well-meaning but out of touch landlords. Avoiding such mistakes will require a little effort and reimagining on the part of landlords to determine what the “new” office will look like and what will help employees adjust to the change.

For this blog post, we’ve compiled some of the incredible trends and innovations happening in real estate. We think you’ll find them fascinating, and hey, you might even want to share one or two at your next cocktail party :)

We celebrated a milestone birthday here at MCRE recently, our Marketing Manager turned 40 in March. Interestingly enough, a month before she was born—February 1982—was the last time the U.S. saw inflation as high as we did in January 2022. Literally, an entire lifetime, at least for our marketing manager!

There’s an old saying that goes something like this: Buy land, they aren’t making any more of it. Sound advice, if planet Earth is the only place you’re looking for land, but what if there was somewhere not on Earth where you could buy property right now? If you’re thinking of the moon or Mars, start thinking more digitally…start thinking metaverse!

For those still not sold on the work-from-home revolution, consider this: A survey conducted found that productivity in call centres increased 7.6% after a switch to remote working with no discernible decrease in customer satisfaction.

While rents may be rising, the cost of homeownership is rising even faster. As more and more millennials begin to enter their late 30s and early 40s, the draw of small, big city condos dwindles and they look for more space to accommodate growing families. With homeownership firmly out of the grasp of many, renting an affordable and well-maintained family dwelling becomes an attractive option.

In March 2020, back when the world began to realize that this little virus out of Asia had gone global and was leaving bodies in its wake, global lockdowns began immediately and the stock market took one of its biggest plunges of all time. The world was in agreement: Things were only going to get worse from here on in.

Leading up to the pandemic, industrial property was already on the rise as keen investors saw the benefit of owning warehouse space near population centres to facilitate quick shipments.

Investing in commercial real estate can be rewarding—both financially and emotionally—but successful investments require a lot of work. The income may be passive but the work to achieve it certainly is not!

As work-from-home becomes a lifestyle choice for many workers, it seems as though employers who want employees in the office not only have to provide a place for them to work but also a place where they want to work.

Ahh, the cap rate. To hear some investors talk you would think cap rates are the holy grail of real estate investing, and while we won’t argue their importance, we will argue the use of the cap rate as a definitive tool for decision making. Yes, the cap rate is a valuable source of information but it should not form the crux of your investment strategy.

A landlord, by definition, is a person (or institution) who provides the use of land, a building, or an apartment to a tenant in exchange for payment. This last part is very important and sometimes overlooked by landlords eager to attract the best tenants.

Of course, I’m talking about a commercial real estate broker, not a life partner, but the decision process can actually be quite similar. Commercial real estate is a major financial commitment and investment; having the right broker on your side from the get-go is essential.

What’s the most advantageous position to be in when it comes to negotiation? The position that knows exactly what the other side wants. If you know your opponent and what they’re after, you’ve got a much better chance of negotiating a deal favourable to you than someone

When it comes to the differences between commercial and residential real estate, the difference that stands out the most is in how prospective clients select their representation.

I blame TV.

OK, maybe TV isn’t completely to blame, but the popularity and proliferation of DIY house flipping shows have certainly romanticized the idea of commercial real estate investing making it seem like somewhat of a get-rich-quick scheme. Far from it.

If you’re on the fence about whether or not experience counts in commercial real estate, consider the story of Sandra (not her real name) who entrusted one of the most important financial decisions of her life—opening her own business—to not only an inexperienced agent but also an inexperienced residential agent.