How Orange County Commercial Real Estate is Changing

The commercial real estate market is one of the most attractive markets to invest in. With a value of $21 trillion, it’s worth taking a look at the way it’s changed in recent years before one should be considering it.

Let us first take a look at the changes in the commercial market as a whole then use Orange County New York commercial real estate market as an example of seeing that market in action. As mentioned earlier, while the commercial real estate market is valued at a substantial amount, given the state of the financial market, rough waters lie ahead and could lead to severe consequences. Commercial property prices have risen by 13% from 2022’s peak. Following that, there has been a 17.5% drop in office prices, and there have been predictions that it may drop further to the 20-30% range in the future.

In the financial sector, $450 billion of loans will come due in each of the next four years. The market is coming to the reality that cheap money is gone. On the labor side, office employees are spending 25-35% less time in their offices than before the pandemic. This means 15% less office space demand per employee due to home offices. This result is not surprising given the popularity and appeal of remote work even as the pandemic restrictions are waning.

Now we get to the state of New York and discuss some points of interest with their real estate.
The most significant property to discuss is the Colliers Manhattan office leasing. Its volume has grown by 26% giving it a volume of 9.23 million square feet. Its year-to-date leasing volume totaled 24.17 million square feet, which is a nearly 50% increase from the 16.34 million square feet leased during the same period of 2021. Also in Manhattan, luxury retail is growing with the addition of new spaces for companies like Givenchy, Hermes, and Gucci acquired retail spaces.

Orange County Commercial Real Estate

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