Emerging Trends in Real Estate, a trends and forcast publication now in its 34th edition, is one of the most highly regarded and widely read forecast reports in the real estate industry. Here is a brief list of emerging plays or "best bets" for 2013. Is Jacksonville ready to cash in?
These investment and development sentiments from Emerging Trends interviewees deserve particular attention in 2013.
1. Concentrate acquisitions on budding infill locations
"Find buildings where tenants want to be," typically in districts where hip residential neighborhoods meet commercial areas and "not necessarily the top, most expensive buildings." "You can't get enough of anything near mass transit stations," especially apartments.
Transit Oriented Development (TOD) around fixed rail is one of the most popular plays in real estate countrywide. Unfortunately, Jacksonville hasn't investment much into the power of mass transit to spur economic development, downtown revitalization and job creation. The 2030 mobility plan and fee can lead us in this direction but the City Council is currently considering implementing a moratorium in hopes of jump starting a building pattern that's decreasing in nationwide popularity as millennials come of age. In the meantime, expect neighborhoods, such as Riverside and San Marco, where walkable residential integrates with walkable commercial, to increase in popularity.
2. Construct new-wave office and build to core in 24-hour markets
Major tenants willingly pay high rents in return for more efficient design layouts and lower operating costs in LEED-rated, green projects. Jacksonville isn't a 24-hour market.
3. Develop select industrial facilities in major hub distribution centers near ports and international airports.
In these markets, "the industrial sector is where the apartment sector was two years ago," driven by tremendous demand by large-scale users looking for specialized space and build-to-suit activity. There could be opportunity for us here.