Published On Sep 19, 2024
in Areas of Expertise
As part of PECO's National Accounts Team, I always try to stay at the forefront of what’s happening in our industry. Recently, I came across Placer.ai’s Emerging Trends for CRE in 2024 which provided a snapshot of the latest trends and emerging opportunities within commercial real estate. Below is a glimpse into some of the key shifts Placer.ai listed, along with my own observations:
Return to In-Person Work
As hybrid work schedules become more normalized across industries, there has been a noticeable return to in-person work for people living within 3 miles of their offices, especially in East Coast cities. This desire for convenience and continued populational shifts toward residential areas reinforces the importance of location and the demographic strength of our trade areas. People are staying closer to home and PECO’s centers, situated at the corner of Main and Main in the Neighborhoods they serve continue to benefit from this trend and drive strong traffic to our retailers.
Shopping Center Visits Surge
Foot traffic to shopping centers has exceeded pre-pandemic levels and continues to increase this year. This aligns with the fact that Median Household Income levels have returned to pre-covid levels and re-normalized.
Population Growth in Sunbelt and Mountain States
Sunbelt and Mountain regions are experiencing sustained population growth, leading the way in demographic shifts that are shaping commercial real estate markets. In select states like Florida and Texas, suburban areas experienced rapid expansion over the last four years, outpacing both rural and urban growth. These areas remain highly attractive for PECO, offering strong tailwinds and aligning well with our top market strategies.
Conclusion
These trends highlight the resilience and adaptability of the commercial real estate industry as it navigates the post-pandemic world and the ever-changing terrain of consumer demand and expectations. They also reinforce PECO’s commitment to our current focus and strategy, encouraging us to continue leveraging these positive changes. It will be exciting to see how these current patterns unfold in the coming months and years.
Brian Sheehan
