In a recent blog post, we shared Anchorage commercial real estate trends to watch for in 2018 and among them was indeed an improvement in the office market. It is likely we will see the office market progress, albeit at a slower pace than last year, with tenants and investors favoring newer buildings and their varied amenities. This week, we’re diving even deeper into the Anchorage commercial office market and what you can expect to see as we head forward into the new year.
We’ve rounded up four more predictions for the office market in 2018 and as your local Anchorage commercial real estate experts, we’re sharing them with you below!
Rents will rise
The commercial real estate market is showing signs of increasing office rents in the coming year. Factors like an improved job outlook may even keep them rising until 2019.
Vacancies will rise
As supply grows in the Anchorage commercial real estate market, so too will vacancies. In the past two years, vacancy rates had stabilized, but as we move further into 2018, we will see these rates rise especially as more office construction is made available.
Suburban markets will grow
Suburban markets have been on the rise and that trend is slated to continue in 2018. Investors are growing more interested in walkability for tenants and employees and less with features like large parking lots. Such suburban markets that offer a variety of housing choices and amenities, such as public transportation and entertainment, will be high in demand this year.
Investors will favor office space
It will not be uncommon in 2018 for investors to begin to favor office space over industrial and multifamily properties. While these two sectors of commercial real estate are indeed growing, investors will look toward the office market this year to add to their investment portfolio.
Questions about the 2018 Anchorage commercial real estate market? Ready to invest in Anchorage commercial real estate? Not sure which property is the best fit for you? Give us a call!
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