Elevate with Tyler Chesser - The Real Estate Podcast for Investing, Mindset and Personal Development E294 John Chang - Commercial Real Estate Market Trends and Outlook For The Next Five Years: What Serious Investors Should Know
Despite cyclical headwinds such as rising interest rates and an inflationary economy, the real estate industry is taking a long-term approach to assets and displaying cautious optimism for sustained growth and strong returns. This raises the question – how can real estate investors reposition their businesses and investments to adapt to market changes and take advantage of current trends?
John Chang, head of Marcus & Millichap's Research Services team, joins us from the Best Ever Conference to discuss the current state and future of the commercial real estate industry. John shares his expertise in translating economic data into actionable insights for investors stressing the need to stay focused on long-term strategies and staying on top of the market to make informed decisions. He talks about the trends in the industry over the next five years, including the growing importance of medical and suburban office spaces, the re-emergence of retail, and the democratization of commercial real estate investment. Click now and hear John’s crucial advice for real estate investors in these volatile markets and uncertain times.
Key Points from This Episode:
- John introduces himself and explains his work at Marcus & Millichap, a commercial real estate brokerage and financing firm.
- What is the status of real estate investing now given the market changes and the Fed’s intervention, and interest rate hikes in the past 12 months?
- How can investors avoid being negatively impacted by all the financial and economic doomsayers?
- How can investors anticipate and project their moves in the next three to five years given the volatility of the marketplace, the yields, the cap rates, etc?
- What factors should investors look for when considering multifamily investments?
- What factors should investors consider when looking at commercial real estate investing in the next five years?
- Why do suburban offices and medical offices make compelling buying opportunities now?
- Why are retail spaces outperforming despite multiple predictions of a "retail apocalypse" brought about by e-commerce?
- What is the long-term outlook for industrial real estate given its inventory reduction, reduction in imports, and issues such as shipping, supply, and logistics?
- Is the multifamily market still an attractive investment opportunity? What are its long-term household formation trends, and growth potential?
- Why does John say that commercial real estate investing has been undergoing democratization although private investors are still underrepresented?
- How does John see today's market in the broader context of the historical market cycle?
- John advises investors to invest in real estate, understand the underlying drivers, and partner with the right people.
- John’s contact information
Tweetables:
“Investors must stay on top of the market and be aware of what's going on.”- John Chang
“Don’t miss out on the opportunities that are here today that actually will play well into your future goal.”- John Chang
“There's always another piece of real estate but it's very, very hard to replicate knowledge, experience and seasoning and understanding of the nuances of the market.”- John Chang
“The huge advantage of real estate is it is generating cash flow. It is paying you on a month-to-month basis and it allows you to have income throughout your entire retirement cycle.” - John Chang
“The momentum in the real estate space is enormous. The amount of capital coming into commercial real estate is the greatest that's ever been.”- John Chang
“Real estate is a long game. We're not day trading.” - Tyler Chesser
Links Mentioned:
About John Chang
John is the senior vice president of the National Director of Research & Advisory Services at Marcus & Millichap. He is a leading analyst focused on commercial real estate performance and sales trends. He provides industry-leading insights that blend economics, demographics, performance metrics, and sales trends to offer investors a unique and insightful perspective. John has in-depth background blending marketing, advertising, media strategy, promotional campaign creation, PR, web development, eCommerce, and product development adding contextual experience and understanding to insights and analysis.
With an extensive experience across the entire real estate sector, John has published articles, videos, and webcasts and has been a featured speaker in industry events and conferences focusing on all commercial real estate property types: hospitality, industrial, manufactured housing, medical office, multifamily, office, retail, self-storage, and senior housing.