Real Estate Trends: Office Space and Retail Numbers


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When trying to predict the economy and the housing market, one of the biggest predictors of the current trends is the Office Space availability and the Retail Space availability numbers. The numbers in the 2011 Marketing report of Texas A&M University may surprise you.

The Bad News

If you are a corporate real estate agent or business broker, the office space availability numbers are not looking good. Over the last couple of years, the availability of office space has increased dramatically. This could be for several reasons.

New office may have been built in the area. This is the best possible reason for an increase in office space. It means at one point business was very prosperous, and the office space was needed.

Offices may have decided to adopt greener practices. Many businesses are allowing workers to complete their work at home. By switching to this practice, businesses save on overhead and have more money to stay in business. However, they still need a central location to meet for consultations, board meetings, etc. Smaller office spaces with a nice conference room will be needed as businesses continue to switch to greener ideologies.

The last reason office space may be available is the downsizing or closing of businesses. Unfortunately, downturned economies cause businesses to close their doors, and often, it is hard to predict which ones will have to close. The good news is there is more office space available. The bad news is it may not be as profitable a market as it was before.

The Good News

According to the Texas A&M 2011 Marketing Report, the availability of retail space is very small. In 2009, the availability of retail space had skyrocketed to the highest it had been in almost a decade. The fact that retail space is now scarce is a sign that the retail market is starting to boom again in the Dallas area. This is great news and a sign that the Dallas economy is on an upward trend.

As the availability of retail space decreases and office space increases, businesses may have to become more creative in how they use and acquire space. One consideration may be the rezoning of office space to retail space. Office spaces with a few slight renovations are easily changed into boutiques and small speciality restaurants. This is great for smaller businesses that want to open or expand but are afraid they may not be as successful in a mall with all of the larger chain stores. By opening in an exclusive area, these businesses will be marketing for a higher, trendy clientele.

By looking at the numbers, the potential for growth in the real estate industry is apparent. Real estate agents may have to be a little more creative in what they advise sellers and market to buyers.  For more information on the real estate business, look us up at Homevestors.com.

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