Happy Friday, investors! In today’s commercial real estate news, landlords are starting to enjoy start-ups, Radioshack faces new struggles and a consultant predicts 2018 as the end of the current real estate cycle.
Hip, young start-ups are rejuvenating old office spaces. Landlords are installing co-working spaces and offering shorter term leases in an effort to attract the mini tech businesses. The arrangements help owners to get in on the ground level of a potential huge success.
More trouble in the retail world. General Wireless Operations Inc., the company which took over Radioshack in 2015, is filing for bankruptcy. While struggling, it has managed to drop Radioshack operating expenses by 23%, while increasing gross profits by 8%.
Christopher Lee, president and CEO of Los Angeles-based commercial real estate consultancy CEL & Associates, sees an end to the current commercial real estate cycle in 2018. Generational factors like robotic manufacturing and low homeownership rates will be influential in causing this. A new generation of brokers will use immense data to make decisions at the beginning of the next cycle in 2023.