Commercial Real Estate is BIG business in the U.S., but how big is BIG? It can be put into perspective by looking at the many players involved in a commercial real estate deal.
- Investors – Commercial Real Estate accounts for approximately $15 trillion in tangible investments in the U.S. This figure does not include residential real estate.
- Lending Institutions & Mortgage brokers- According to a report by Jones Lang LaSalle, annual commercial real estate lending is projected to reach $1 trillion by 2030.
- Property Managers – Across the country, there are about 20 million actively managed commercial properties.
- Real Estate Agents & Brokers – There are roughly 3 million active real estate agents in the US, and over 5,000 in Miami.
- Developers & Builders – Hundreds of thousands of construction professionals touch the business.
So it is BIG business, but what does it impact? Rise Realty sees the biggest areas influenced by commercial real estate to be job health, market development and new technology business.
- Job Health – When the commercial market is strong, it positively affects employment, and vice versa. If growth declines or halts, many related occupations such as those in construction, architecture, engineering and manufacturing also see a decline in stability and income.
- Market Development – A strong commercial real estate market is a sign businesses are strong. When businesses are strong, reinvestment in the area’s culture and infrastructure happens. In Miami, commercial real estate is an incredibly important business sector, and has a significant influence on the local economy. “Reinvestment into the community creates a circle of life in Miami. When a new entertainment or cultural area opens, it brings in more residents and then it offers the opportunity for businesses to come in or grow, and then more people come in and so on, ” says Keith Darby, President of Rise Realty.
- New Technology Business – Given the size of the business, technology innovators are honing in on the commercial real estate market. They see the opportunity to capitalize on the potential for income and growth. Venture capitalists are investing in products to better serve the sector and developers are creating new apps and infrastructure that could potentially evolve the market. New economic opportunities could arise from these developments.