Real estate economists and industry reports said their predictions depend on next year’s accuracy for mainstream forecast of economic growth and assume that the economy won’t experience an earthquake from falling off the fiscal cliff. Emerging trends show a sharp turnaround for the upcoming year. Analysts have officially released important trends and issues of 2013 that you need to know affecting U.S. real estate markets.
Ron Herscho is a distinguished real estate developer, a pioneer in the New York real estate market. He developed the Meridian a luxury residence overlooking the Atlantic Ocean and 306 Gold Street a 40 story glass building that overlooks downtown Brooklyn’s skyline. Ron focuses on urban development, affordable housing and high-rise condominiums in the New York area. His mission goes hand in hand with 2013 real estate trends by providing high quality affordable living and to make buying a home a simple experience.
The Emerging Trends in Real Estate report has been a reliable forecast for real estate developers and investors across the nation. The rising trends include:
• Focus on maturing infill locations, such as properties near mass transit stations and commercial areas near hip residential communities.
• Construct new-wave office and build to core in 24-hour markets. Build green, tenants will pay higher rent for buildings with efficient design layouts and lower operating costs.
• Develop industrial facilities in major distribution centers near ports and airports.
• Be cautious when investing in secondary and tertiary cities. Partner with local operators who understand the local tenant trends and issues. The leading secondary markets comprise Austin, Charlotte, Nashville and San Jose.
• Steer clear of apartment development in low-barrier-to-entry markets.
• Investing in single-family housing funds, will add to rental supply and compete against apartments.
• Repurpose the excess of out-of-date properties. Facilities such as vacant centers, old office parks and low-ceilinged warehouses are prim candidates for renovation or redevelopment.
Ron Hershco agrees that real estate firms boost profitability at the margins by keeping lean; anticipation of 2013 will be a reasonably good year for bottom lines. Stronger capitalized firms should continue to gain market share, but the overall size of the Industry will not change.