Why I’m giving thanks for a bountiful year in commercial real estate – Daily News

on Nov19
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To all my readers, Happy Thanksgiving!

As we gather to celebrate this cherished holiday, I can’t help but reflect on the many reasons we have in the world of commercial real estate to be grateful for in 2023.

The fall season has always held a special place in my heart, with its crisp air and vibrant foliage. It’s a season that culminates in Thanksgiving, a day dedicated to indulging in the company of loved ones, feasting on delicious food, and, of course, watching some football. Wherever you are, I extend my heartfelt best wishes for a wonderful Thanksgiving day filled with joy, gratitude, and togetherness.

As we approach the end of 2023, with only six more weeks until we bid farewell to the year and sing “Auld Lang Syne,” let’s take a moment to count our blessings in the commercial real estate industry.

Booming market: Demand for Class-A industrial has been a bit tepid as we’ve delivered a slug of new inventory and the market adjusts to higher rents. However, within the last two weeks, we’ve seen two large deals transact – one in Fullerton and the other in Brea. I still believe we have some softening ahead, but the green shoots of tenant demand appear to be growing.

Technological Advancements: Artificial intelligence, also known as AI has significantly changed the ways content creation happens. You know those flowery descriptions of your dream home that appear on websites or brochures? Chances are – those were written by bots.

Commercial agents generally lag our residential counterparts by years. However, targeted marketing campaigns, with letters, emails, texts, and collateral will all go twin some generative content soon. Quick responses to listing inquiries will follow. Clauses for letters of intent or contracts could be next.

Sustainable practices: Sustainability has taken center stage, and it’s heartening to see the industry’s commitment to green building practices and environmentally conscious development. It’s not just about reducing carbon footprints; it’s about creating healthier, more sustainable communities.

Adaptability: Commercial real estate professionals have shown incredible adaptability and resilience in navigating the last three years. Industrial in hyper mode throughout 2021 and early 22, the office market cratering and then coming back to life in a different form as hybrid work became a thing, and finally retail placed a premium on experience. The ability to pivot and embrace new ways of doing business has been instrumental in overcoming challenges.

This Thanksgiving, while we remember our blessings, we do have some signs of uncertainty for the year to come – decades of high interest rates, global uncertainty, wars in Ukraine and Israel, an upcoming presidential election, and a potential recession.

As you gather around the Thanksgiving table, whether with colleagues, friends, or family, take a moment to reflect on the collective blessings of the commercial real estate industry in 2023. Let’s express our gratitude for the opportunities we’ve had and our determination to overcome challenges in the coming year.

So, as the aroma of a Thanksgiving feast fills the air and the excitement of a football game captivates our attention, let’s give thanks to the thriving commercial real estate industry and the promising future it holds.

Happy Thanksgiving!

Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104.

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