As real estate investment booms, the real estate landscape is also changing dramatically. With a considerable emphasis on engagement, community living and co-work spaces are shifting the commercial real estate industry. Sites like Airbnb and VRBO continue to thrive causing investors to turn their focus to short-term rental opportunities. With these new trends, our concept of what a good real estate investment changed as well. All these trends will continue to shape the real estate industry as we head into 2018 and offer great options to consider when building out your real estate portfolio in the new year.
As rent prices continue to skyrocket in many major cities, co-living spaces have become an excellent opportunity to satisfy the needs of tenants and investors alike. Living with roommates isn’t a novel idea, but by offering an opportunity for people to meet others without the pressure of living with your best friend or college fraternity brother provides a more controlled concept. Think of it as a cost-effective option for many young adults with more pros than cons.
As TechCrunch sat down with three business professionals at the forefront of the short-term real estate growth, they described, “Community being first and foremost, given that it’s become a scarce commodity in today’s day and age,” as the most prominent benefit of co-living spaces.
Co-work spaces are moving the needle for the same reasons co-living spaces are so popular. For smaller companies, co-work spaces are an opportunity to partake in all of the amenities a larger group might be able to afford – outdoor areas, stocked kitchens and a plethora of high-end meeting spaces to name a few.
Not to mention the creative aspect of both these spaces. Community engagement creates an opportunity to foster growth and creativity. As described in Forbes there is a host of benefits to coworking, but to name one “Proximity gives you the chance to “pick the brains” of professionals in your own line of work as well as those in related fields.”
Short-term rental properties create a wealth of opportunity for major investors and a young entrepreneur just dipping his or her foot in the water. Based on location and peak seasons, rental properties make it possible to make the same rental income in less time. Not to mention, you may even find yourself with a vacation locale tailored to your own needs when the property goes unoccupied.
That being said, there runs a higher risk if you fail to find enough customers or invest in a market that is already inundated with high end overnight stays. The important thing about investing in these types of properties is understanding the market and what you are getting yourself into.