Exploring Global Commercial Real Estate for the Next Five Years With James C. Dragon

As with every investment, time is an essential factor. The savvy investor often recognizes that an opportunity’s potential changes with time. This is certainly true with respect to real estate. Markets are affected by various factors that can change dramatically in a matter of years, months, and even days. Commercial real estate expert James C. Dragon always focuses on what’s happening in real estate, especially on a global scale. Let’s explore what’s happening in the global commercial real estate market and what we might see over the next half-decade.

Overall Outlook

According to Research And Markets’ “Commercial Real Estate Market – Growth, Trends, COVID-19 Impact and Forecast (2022-2027)” report, the global commercial real estate market is expected to have a compounded annual growth rate or CAGR of 10%. This means that over the next five years, the overall value of commercial real estate worldwide is expected to grow by 1/10. With pandemic protocols becoming more relaxed, experts see the global market recovering. The following trends have powered growth in this sector of real estate:

  • People moving from rural areas to cities and metropolitan areas
  • Integrating digital technologies in commercial real estate
  • The growing investment by foreign entities

Although Europe and the United States saw a decrease in office real estate, there was significant growth in Canada and throughout Asia.

Where To Look 

Although COVID-19 has most impacted office real estate, James C. Dragon points out that this market is expected to recover. This is most evident throughout the Asia Pacific region, where the population increases, the gross domestic product, the middle class, and office workers drive the demand. Over half of the new office construction worldwide is in Asia and the Pacific Islands.

The pandemic has also impacted the retail industry, but the shift to online retail and companies adopting environmental and social values has increased the need for retail-related construction. The demand for infrastructure to support e-commerce will push retail forward. Innovations in repurposing commercial spaces may also spur growth in the retail sector. Throughout Asia, the United States, and Europe, we can expect continued growth to keep up with increased sales for various stores, including groceries, clothing, department stores, and restaurants.

For commercial real estate veterans like James C. Dragon will be the next five years represent a tremendous opportunity for those who are ready to invest globally. Never has the adage, “location, location, location,” proved more apt when it comes to making sense out of dollars in commercial real estate investment. Five years is both a short and a long time period with respect to making sound investments. Things may look one way in your backyard yet completely different when considering a worldwide vantage point.

Leave a Reply

Your email address will not be published.