Andrew Jubelt

Commercial real estate is one of the things that underpins modern society -- after all, businesses rarely reach beyond the smallest of sizes if they don't have an office. There are some good reasons to believe that commercial real estate is going to go crazy over the next two years, so let's look at some of the major drivers.

1. Smoother Process Management

Today's commercial enterprises are constantly striving to improve their interior performance, and they're no longer satisfied with old, out-of-date processes for real estate. New companies are starting to link buyers with proven, reliable dealers and vendors, and this pressure is encouraging the entire market to shift for the better.

Commercial real estate hasn't gone through nearly as much disruption as many other industries have. But as technology begins to enter the area and creative entrepreneurs start finding ways of improving the business model, we're expecting that to change.

2. Improved Information Sharing

How much is that office building really worth? That's a fair question for any buyer to ask, especially after they've seen real estate bubbles in other areas implode in on themselves. New ways of sharing information are making it easier for buyers to truly understand the property they're looking at, estimate its long-term value, and enhance the speed at which changes are reported to interested parties.

"Businesses are no longer satisfied with anecdotes. They want solid information and proof that they're getting a good deal."

We're expecting more investors to start jumping into the market as it takes off, and many of them will be relying on real-time data to help them make their decisions. Properties that are providing this information are more likely to be sold, and as the rest of the market realizes this, we expect to see a rush to join in. This could very well be the disruption that finally turns commercial real estate around and changes the way buyers make their decisions.

As an aside, we're also expecting to see expanded use of bridge loans among property buyers who want to get in on deals before bargains rise.As always, we recommend carefully running the numbers before buying property, and making sure you'll be making money instead of losing it.

3. Buyers Returning to the Market

This is an aspect of the real estate market that's been overlooked by many ... though they shouldn't have done so. Seven years is the amount of time it takes for most financial problems (bankruptcy, foreclosure, etc.) to be removed from people's financial records, and those buyers will be returning to the market throughout 2015-16.

We're not expecting these buyers to be major players right away, but it looks like the boom in commercial real estate will be happening just before they start re-entering the market. That's going to create a sense of anticipation and urge them to dive in, bringing a new wave of buyers and almost certainly pushing prices higher as demand grows.

We expect most buyers to be hesitant about pushing prices too far beyond the actual value of the property, but many of them may be willing to accept smaller profit margins if it means they can still acquire the property in question -- especially if they currently have no property at all.

Interested in being a part of the explosive growth of real estate? Start making your plans now and contact Andrew Jubelt at 212-231-9779 or write to him at ajubelt@avant-capital.com.Getting as much possible work done before the boom could put you in a better position to make bids, acquire commercial real estate, and take advantage of changes in the market.