For each myth, we summarize the popular theory from a national perspective, then address the reality with examples from three major metro markets.
Key findings of the report include:
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- Myth vs. Reality: Evaluating Popular Misconceptio…
Myth vs. Reality: Evaluating Popular Misconceptions in Commercial Real Estate
June 2018
Newmark researchers across the U.S. collaborated to examine six popular commercial real estate myths of 2018 and determine to what extent they are anchored in reality.
Myth: Brick-and-mortar retail is being replaced by e-commerce
Reality: Brick-and-mortar retail remains vital, but a transformation toward experiential retail is accelerating
Myth: Office design is primarily about efficiency and cost control
Reality: Office design is about creating productive workspaces and attracting/retaining talent
Myth: Foreign investors have soured on U.S. commercial real estate
Reality: Foreign investors are becoming more cautious but are still investing significantly in U.S. commercial real estate
Myth: Older, close-in industrial product is often vacant and obsolete
Reality: Industrial locations close to major cities are highly desirable for last-mile distribution facilities
Myth: Suburban office locations are no longer desirable
Reality: Suburban office space is highly desirable to some tenant types, particularly if the space is amenity-rich
Myth: Millennials are the future of multihousing demand
Reality: Seniors and boomers are increasingly drawn to apartment living
The study concludes with action steps for owners, investors, and tenants in light of the implications of our findings.
Research Contacts:
Jonathan Mazur
Executive Managing Director, National Research