Myth vs. Reality: Evaluating Popular Misconceptions in Commercial Real Estate
Is ecommerce replacing brink and mortar in retail? Have foreign investors soured on U.S. commercial real estate? Is office design really all about efficiency and cost control? Have suburban office locations lost their appeal?
The latest installment from Newmark Knight Frank's thought leadership series, titled Myth vs. Reality: Evaluating Popular Misconceptions in Commercial Real Estate
, examines these questions and more. The report was compiled from researchers across the U.S. collaborating to examine the six most-popular CRE myths of 2018 and determine the extent of their validity. For each myth explained in the report; NKF summarizes the popular theory from a national perspective then explains the reality using examples from three major metro markets.
"With the changing economic and technological landscape in the U.S., there are many ideas and opinions circulating about current trends in U.S. commercial real estate. No major property type is immune from speculation. While trends are new, they tend to gain traction through the industry media, especially if they are particularly alarming or salacious (for example, the ubiquitous claim that “brick-and-mortar retail is dead!”). However, the headline often does not tell the full story, and what has become standard perception is either partially or wholly inaccurate. Trends that are present nationally may be altered or absent when examined at a local level, and metro areas large and small may tell a different story.
The myths we cover here were collected from common questions we have heard from our clients, and from concerns they have about what they are reading or seeing in the market. We believe misconceptions lead to suboptimal investment and development decisions; thepurpose of this white paper is to bring clarity to the commercial real estate marketplace so our clients will be equipped to make sound decisions.
Newmark Knight Frank researchers across the U.S. collaborated to examine six popular commercial real estate myths of 2018 and determine to what extent they are anchored in reality. For each myth, we summarize the popular theory, and then address the reality with examples from three major metro markets."
Download the full white paper, Myth vs. Reality Evaluating Popular Misconceptions in Commercial Real Estate.