Commercial Real Estate: An Outlook to 2024
Commercial Real Estate: An Outlook to 2024
The commercial real estate market is at a pivotal moment, according to CBRE’s comprehensive analysis. Their 2024 report forecasts that the U.S. office vacancy rate will rise to 19.8%, a significant increase from current levels. This increase reflects the ongoing post-COVID-19 adjustment in workplace demand as companies re-evaluate their office space needs in light of increased remote work. However, CBRE also anticipates a resurgence in office leasing activity, suggesting a slow but steady recovery as companies adapt to new work models. This nuanced landscape offers investors an opportunity to reevaluate their portfolios, focusing on properties that align with emerging trends such as flexible workspaces and tech-enabled offices.
Retail strategies
The retail scenario is also complex. A prolonged drought in new construction has led to a limited supply of retail space, potentially benefiting landlords with premium locations. However, consumer behavior has shifted dramatically toward online shopping, a trend that has been accelerated by the pandemic but is expected to continue to grow. Retailers and investors must navigate this dual reality, where physical stores must offer something beyond mere transactions-experiences, convenience, or unique value propositions. Companies like Amazon and Walmart are leading the way in integrating their online and physical retail operations, demonstrating the potential of omnichannel strategies. For investors, there is an opportunity to reimagine retail spaces to meet these evolving consumer expectations, potentially transforming traditional retail into mixed-use developments or e-commerce distribution hubs.
The role of technology in real estate
The use of technology and the push for sustainability are becoming central themes in the office and retail real estate sectors. Smart buildings that offer advanced energy efficiency, improved air quality and an enhanced occupant experience are no longer a luxury, but a necessity. This shift is being driven not only by tenant demand, but also by regulatory pressure and the broader societal movement toward sustainability. Companies like Google and Salesforce are leading the way, investing in campuses that are as environmentally friendly as they are technologically advanced. For investors and developers, this means prioritizing properties that can accommodate or are already equipped with such technologies. The potential cost savings from energy efficiency, combined with the attractiveness of these spaces to forward-thinking tenants, can have a significant impact on investment returns.
Adapting to consumer and business needs
The retail landscape is changing, driven by the rise of e-commerce and changing shopping behaviors. Retailers are now tasked with creating engaging in-store experiences that complement their online offerings, blurring the lines between digital and physical shopping. Innovative companies like Shopify and Nike are experimenting with concept stores that offer immersive brand experiences, personalized services, and seamless integration with online platforms. For real estate investors, the focus is shifting to supporting these hybrid retail models, which require versatile spaces that can adapt to different experiential concepts and technology integrations. This evolution points to a future where retail spaces serve as brand showrooms, community hubs, and fulfillment centers all at once.
Conclusion: Embracing change for growth
The U.S. office and retail landscape is undeniably changing, and CBRE’s forecasts underscore the changes and opportunities that lie ahead. For investors and companies, success depends on the ability to anticipate and adapt to these trends, leveraging technology, sustainability and flexibility to meet the demands of tomorrow’s tenants and consumers. As the market evolves, those who can navigate these complexities with strategic foresight are likely to emerge stronger, ready to capitalize on the new era of commercial real estate.
Jack C Bharat
AmeriGroup Residential & Commercial Properties. Inc.
122-15 111th Avenue, S Ozone Park, NY 11420
Email: jackcbharat@gmail.com
Phone: (718) 805-6982
Jack C Bharat has been in the Real Estate Business since 2003. As a Realtor & Developer, his experience in buying dated, distress or fixer upper and renovated them back for resale can help both buyers and sellers in their transactions. Graduated in 1999 from Queens College (CUNY) Flushing, with a Bachelors of Arts Degree and in 2012 from LaGuardia College with Goldman Sachs 10K Small Business Certificate Of Entrepreneurship, Mr Bharat is always educating himself to stay current and sometimes ahead of Real Estate Market Trends. He is currently a Notary Public in the State of NY as well.
Mr Bharat has completed real estate projects in New York-Queens & Long Island, Florida-Ocala & Coral Springs & recently (Nov 2023) 8 Units Apt in Providence, Guyana. His passion for creating projects that blend functional modern architectural design in harmony with the natural environment are evident in his most recent commercial project in Providence Guyana, currently under initial phase of construction. Mr Bharat also is the CEO of Liberty Office Supplies & Equipment, Inc. A Certified Minority Business Enterprise (MBE) with New York City & New York State. Established in May 1999, Liberty provides a wide range of office supplies and work as a sourcing company for the Federal Government by being a GSA schedule holder.
Jack is Licensed as a Real Estate Broker in State of New York and in the State of Florida. He has knowledge in both residential and commercial sales. His motto “Working with Clients to achieve their real estate goals” is what drive him to be on top of his game. He is very involved in his community especially with social and educational issues. He is the proud sponsor of a local Cricket Team, Boxing and donates his time and money to various organizations that work with children, abuse victims and the elderly. He is cited by NYC Mayor’s Office, NYS Assembly and NYC Council for his leadership role in his community.
Mr Bharat has three daughters: Alicia who graduated with her Masters Of Science in Education from Queens College and is now a STEM Teacher with the NYC Dept of Education, Kayla who has recently (2024) graduated from CUNY School for Public Health with her Masters of Public Health in Environmental & Occupational Health Sciences & works as an Environmetal Health & Safety Specialist with Sloan Kettering Cancer Ctr. and Jessica who is currently enrolled as a senior at Queens College pursing her goal as a Dentist.
Mr Bharat has completed real estate projects in New York-Queens & Long Island, Florida-Ocala & Coral Springs & recently (Nov 2023) 8 Units Apt in Providence, Guyana. His passion for creating projects that blend functional modern architectural design in harmony with the natural environment are evident in his most recent commercial project in Providence Guyana, currently under initial phase of construction. Mr Bharat also is the CEO of Liberty Office Supplies & Equipment, Inc. A Certified Minority Business Enterprise (MBE) with New York City & New York State. Established in May 1999, Liberty provides a wide range of office supplies and work as a sourcing company for the Federal Government by being a GSA schedule holder.
Jack is Licensed as a Real Estate Broker in State of New York and in the State of Florida. He has knowledge in both residential and commercial sales. His motto “Working with Clients to achieve their real estate goals” is what drive him to be on top of his game. He is very involved in his community especially with social and educational issues. He is the proud sponsor of a local Cricket Team, Boxing and donates his time and money to various organizations that work with children, abuse victims and the elderly. He is cited by NYC Mayor’s Office, NYS Assembly and NYC Council for his leadership role in his community.
Mr Bharat has three daughters: Alicia who graduated with her Masters Of Science in Education from Queens College and is now a STEM Teacher with the NYC Dept of Education, Kayla who has recently (2024) graduated from CUNY School for Public Health with her Masters of Public Health in Environmental & Occupational Health Sciences & works as an Environmetal Health & Safety Specialist with Sloan Kettering Cancer Ctr. and Jessica who is currently enrolled as a senior at Queens College pursing her goal as a Dentist.
