Professional property management in Centennial, Colorado or other municipalities near Denver will likely become more necessary in 2019 when the state’s capital city is expected to have a continually strong real estate market.
CBRE’s analysis showed that commercial real estate prices are slated to increase further in 2019 due to the technology sector’s job growth. As more start-up companies require workers, these firms will need a bigger office space. From 2016 to 2017, high-tech job growth in Denver has bucked the declining trend in the U.S., with a 12.5% growth during the period.
How Technology Affects Commercial Property Prices
Whether you own a commercial building or an apartment complex for rent, the technology sector’s job growth in Denver will serve as another reason to review your property management strategies. New companies prefer to set up their business in prime areas, and even nearby areas will become a desirable place for their employees to rent out an apartment or a small house. Inter-state migration has been prevalent because of this since people are willing to relocate in a city where there are plenty of jobs in their chosen field.
Commercial and real estate landlords in other major cities should also consider the need for asset management. In Seattle, for instance, job growth in the tech sector has surged by 25.7% in 2016-2017, compared to just 17.5% in 2014-2015. As a result, asking prices for office rents in the city has become 14% more expensive since 2016. The situation is even more noticeable in St. Louis, where job growth has increased by 23.3% in the last two years, compared to 2.1% in 2014-2015.
Buying Another House as an Investment
Aspiring real estate investors choose the residential property segment as their initial choice mostly because beginners tend to be intimidated by the complexity of dabbling in commercial real estate. Still, you should consult with a property management expert before making an investment decision. In 2019, the expected increase in interest rates will compel some people to decide quickly, such as choosing where to buy a second house.
If you haven’t discussed this with an industry advisor, think about your reason for investing in another house. An analysis showed that many second-time home buyers either plan to derive rental income from the property or wait for the price to appreciate before putting it on the market. Vacation houses are among the popular choices, particularly properties in coastal cities such as Orlando and West Palm Beach in Florida. Forbes even ranked Orlando as the best place to buy a home since prices are tipped to increase by as much as 35% in the next three years.
Job growth is closely tied to the real estate industry’s growth. Booming business in the technology sector has created a domino effect on the price of office space, and rental rates of properties for working tenants. Whether you own properties in Colorado or elsewhere in the U.S., having access to a competent property management service will be important in 2019 to maximize the profitability of your investment.