Investing in Commercial Property Surges Which Means More Buildings, Jobs and Demand for Products from Floors to Commercial Grade Outdoor Furniture

commercial property

Demand for commercial property is on the rise. This in turn increases the demand for related products such as appliances and commercial grade outdoor furniture.

There’s promising news in the real estate markets about the rising values of commercial property. And that promising development is positive for the US economy as well. It will mean an increase in construction, decrease in employment and the demand for more products, including commercial grade outdoor furniture.

The Urban Land Institute predicted in April that commercial real estate transaction volume will grow to $470 billion this year. That’s $46 billion more than in 2014 and a healthy increase of 11%.

In fact, they predict this growth in commercial property will continue to trend upward to pass the $500 billion mark in 2016 and 2017, a 6% bump.

Warehouse rents and hotel revenue per room are forecast to be the leading property types with growth of nearly 4% for warehouse and 5.5% for hotels in the next few years. Experts predict office and retail rental rates will rise by about 2.5%. Apartment rental rates will respond to the demand from millennials and grow by 3%.

Commercial land is growing in value as well. According to Real Capital Analytics, the value of land sales was $21 billion in 2013 and 2014, close to the highs back in 2007 before the recession.

Another positive note is in mall vacancy rates. There has been a consolidation from over-building and the effects of the recession. But now surviving malls are stronger than ever and the occupancy rates are near the 95% level – something not seen in nearly 30 years.

The demise of the mall from online sales is not happening.  In fact, some online stores are not solely depending on clicks but are heading for the traditional bricks and mortar retail model. They include Amazon, Bonaroos and several others. (This is sure to pump up the crowd at the International Council of Shopping Centers mega RECon convention on May 17-20).

The demand for land in all sectors – multi-family, office, industrial and retail projects continues to trend up in demand. One behavior leading this charge is the demand by millennials who want to live and work in urban areas. This group, stunned by the recession, knows this is where the jobs are located. They also don’t want to live in the suburbs like their parents, but prefer city amenities and night life instead.

To meet this demand, old warehouse and factory properties are being razed and replaced. These eyesores are finally going away. Cities are becoming vibrant once again.

The great benefit of this trend is the old adage that success breeds success. If more people are flocking to urban areas because more jobs are being created there, then more business is going to be created catering to this group.

Commercial grade outdoor furniture made in USA

commercial construction cranes

Cranes fill the skyline for commercial construction projects.

That means more construction projects. The sale of more building materials. The shipping of those materials. That also means all those projects will need interior furniture, fixtures and flooring. All those projects will need commercial grade outdoor furniture – benches, bike racks, trash cans, etc.

The ripple effect continues. Many of those items, especially commercial grade outdoor furniture sold by The Park Catalog, are manufactured right here in the USA. (This is because specs for government projects, such as site furnishings for parks, require that the items are made in the USA).

It gets even better. Not only are domestic investors bidding on properties, but so are foreign investors as well. That brings money from outside the country back into the US. This offsets our balance of trade with other countries. And a surge of investment dollars also reinforces the belief that the American economy is still rock solid and remains one of the best places to invest in the world.

Things were tough a few years ago. But Americans, like their cities, are very resilient. Buildings are going up, land and property prices are increasing and that bodes well for an economy trying to rise as well.

To read about the growth in land prices and the trend toward urban construction, click here.

For an enormous selection of commercial grade outdoor furniture, visit The Park Catalog.

Note: The Park and Facilities Catalog now has a ParkExpress program that can ship commercial site furnishings in 1-3 days.


About Robert Caston

Robert Caston
Robert Caston oversees Content Marketing for The Park Catalog. Robert earned a degree in journalism and worked as a reporter for several newspapers. He is a connoisseur of fresh air and loves photographing nature whether he’s hanging out in a national park or a park down the street. With a passion for the outdoors, he is a strong advocate of green spaces and getting people out of the house. His favorite parks are the spectacular Grand Teton National Park in northwest Wyoming and the incredible Twin Rivers Park in Stuart, Fla.

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