5 CRE Trends to Watch in 2017 by Sector


5 CRE Trends to Watch in 2017 by Sector

If you’re looking for the latest predictions of where Commercial Real Estate is headed for 2017, particularly for your sector, you’ve arrived at the right place! Welcome to the future.



The Internet of Things is rapidly changing the landscape of what it means to be a living space- even, or perhaps especially, in multi-family constructions such as apartments. The constant interconnectivity of things such as appliances, locks, and thermostats make for a more streamlined and easier-to-manage space, not to mention more cost effective and efficient.

Also keep an eye on those interest rates (there could be hikes soon), and just try to keep up with the rapid, continuing pace of the developments occurring- the multifamily construction boom isn’t slowing down for anyone, especially not now with the current swing back into urbanization! There’s a mass migration of sorts moving from the rural and suburban areas into metro and urban areas, which means more apartments, more hotels, and even more construction.


Shared spaces are on the rise in workplaces, which may spell big changes in what’s desirable in an office space. More open and dynamic floor plans, with things like standing and rolling desks are taking hold of the office habitat, and with this change will come inevitable changes in real estate!

The office sector will also benefit from the urbanization trend that is occurring and will continue to occur for the next several years. As the cities grow and the suburb sprawl shrinks, and as more people move into the cities, they’re going to need workspaces, and they’re going to want them flexible, as described above with the shared spaces trend.


The retail sector could see a massive shake-up as early as next year in the form of drone delivery services and driverless vehicles. Without the need to rely on the human component for delivery, the retail sector can expect to greatly and quickly change the configuration and placement strategies for stores and warehouses.


Retail also benefits from the ongoing urbanization- more people near the stores inevitably means more shopping to be done- as well as the increased and constant connectivity that the Internet of Things will soon provide, for things such as more efficient stocking, increased security ability, and new considerations for products and advertising.


The industrial sector may seem to be getting the short end of the stick here, but this is not the case. This sector, while moving more steadily and changing less rapidly, is seeing a marked increase in automation and new technology considerations, which, along with the advent of driverless vehicles, could mean entirely new places for industrial facilities relative to the consumers that drive the industry itself.

Though not directly benefitting from urbanization, as industrial zones are typically at least a little bit removed from the sprawl of the cities, a trend that is following in the wake of the urban migration is an increase in capital investment- good news to anyone’s ears.