2014 is already nigh and business experts are started to give their forecast and predictions for the foreseeable of different industries. Many are quite excited to know what this new year would bring for the economy and industry and what commerce will take the lead for the rest of the year.
For big industries like the real estate, 2014 would be the time to see if they can or will continue to reap the rewards of the flourishing commercial real estate industry. It is undeniable that the retail spaces and innovative office space solutions took the front seat for 2013. With the emergence of new breed of business owners and the boom of the small and medium enterprise, space schemes like serviced office and plug and play office became a known alternative for office space hunters.
2013 was also considered as the recovery year for this industry. After recession hit the world economy, the real estate business struggled to keep up with the dwindling commerce. With companies closing or downsizing, business owners and players were forced to move out of their traditional office spaces and look for a physical ground to continue their operation. Luckily, the struggling space owners were able to formulate an office space solution that could accommodate the needs of these corporations and companies. The low-cost, flexible rent scheme worked for both parties.
And aside from the space, additional office services were added to spice up this industry. Office solutions such as virtual offices and seat leases were included to the list.
So what will be the future of this industry for 2014?
Real estate professionals are looking up for a steady and continuous recovery for the first half of the year. Consulting firm Deloitte that the recovery will overlap until the first two quarter but the pace will slowdown since development is still subdued due to stringent standards of construction. But on the good side, the firm also said the there will be intermittent change in the real estate business in terms of business practices such us redesigning traditional office spaces to suit the demand of tenants.
The second half, on the other hand, will start looking up for the real estate sector as experts forecast that there will be a 2.8 percent increase in office rents. Momentum is building in the office for rent sector as cities such as Jakarta, Dubai, San Francisco, and Tokyo are now emerging as the strong regions for commercial and retail hubs. But other regions are also catching up in the space department as countries like Hong Kong and the Philippines continue to build and establish business centers and executive suites on prime locations. Little by little, developing countries are accepting this new office space schemes which are quite popular in the Western region.
Still, realtors and commercial space owners should keep on their toes as this industry is somewhat unpredictable and quite dependent on the individual and corporate commerce. It is a must to watch the economic trend and figure out what alternatives they can give and offer to their would-be tenants and occupants.