As investors draw closer to wrapping up 2018, they may naturally be planning for their future moves. Specifically, investors in Massachusetts may wonder what areas of commercial real estate will likely be the most lucrative in 2019. Here is a glimpse at what experts are saying about the industry’s current and future areas of potential.
First, digital retailers continue to thrive, which means they are demanding more distribution centers and warehouses. This caused the real estate industry’s industrial sector to flourish in 2018, with more than 66 million square feet in new supply entering the market in the third quarter — a 10.5 percent increase from the year before. Even with the large supply, vacancy rates were historically low at 4.9%. In addition, asking rents increased nearly 6 percent.
Second, data center real estate remained a major target for investors looking for excellent alternative opportunities for investments this year. In fact, the absorption of data centers has skyrocketed around the world due to demand from today’s cloud users. Over 170 megawatts in the United States have been absorbed, with seven billion dollars in investment transactions taking place during the first six months of 2018 alone.
In today’s dynamic commercial real estate world, choosing a particular sector to focus on can no doubt be tricky. However, after an investor has settled on a specific sector, it can be just as tricky for this individual to handle the legal aspects of a purchase if he or she has never been through the process before. Fortunately, an attorney in Massachusetts can provide the investor with the guidance that he or she needs to navigate a deal in the most personally favorable manner possible.