For developers and investors alike, commercial properties have traditionally provided great ROI, and are therefore very appealing. For the most part, this is still true. However, certain global and industry wide trends and changes have presented some new challenges that you should be aware of before putting your money on the line. They aren’t necessarily reasons to panic, but a savvy investor should use this information to build a smart, informed strategy.

The Industry Does Not Take Advantage of Visualization

We live in a highly visual, digital age where high quality photos and videos are ubiquitous. Unfortunately, the commercial real estate industry has not kept up with the trends of presenting its products in a visually appealing manner.

The good news is, this is easily rectified and presents an opportunity for property owners to make their listings stand out. For around a few hundred dollars, a professional photographer, videographer, or drone operator can spend a day getting shots that will present the property in the best possible light. If that out-of-pocket expense is prohibitive, a quick photo or video tutorial on YouTube should be able to help you shoot decent quality footage and stills with your smartphone. It may not be professional-grade, but it will certainly be better than nothing.

New Construction Has Slowed

Another concern in the commercial real estate sector is that, for several reasons, construction of new properties has slowed down. This is a recent development, and it can be attributed largely to supply chain issues and the rise of people working remotely. Office space has suddenly become less necessary for many business categories.

Of course, that’s not the case for everyone, and the solution is for developers to be more targeted about the types of properties they’re listing, and the clients to whom they’re pitching them.

E-Commerce Continues to Hurt Brick and Mortar

It’s no secret that lots of business has moved from traditional brick and mortar stores to the wide-open space of the internet. This has been a threat to commercial real estate for some time, and candidly, it is only likely to get worse. That said, you just need to know what your space is capable of handling, and what could be repurposed or remodeled to fit the needs of a company that can’t take its business online.

Real estate is still a strong, solid investment. Like any other, it is evolving and faces modern challenges. If you know and understand what they are, you can plan your tactics to circumvent or embrace the changes!