Real Estate Market Trends and the Affects On Business Moves

We are here to provide a current market analysis to help companies assess their desire to move office locations. The trends are highly affected by new technologies, worldwide pandemics, and the cultural changes 2024 has brought about. Long-distance moving companies will see an increase in the number of commercial moves booked.

The real estate market plays a surprising role in long-distance business moves. As companies think about their relocation options, market trends influence their decisions. Companies want to have access to the best workers at the best rates and will move if needed. This article explores trends in the real estate realm that are affecting long-distance businesses and making them move.

1. Work From Home and Flexible Office Spaces

Since the days of COVID-19, remote work growth has dramatically changed the commercial real estate world. 2020 was a game changer for many reasons, but in our line of work, this was a big one. Many businesses are downsizing their offices or signing on workers that demand flexible work arrangements. This trend impacts long-distance moves:

• Reduces The Need for Big Spaces: Companies moving to areas with lower living costs may choose smaller offices, which will lower their moving expenses.
• Suburban Trends: Many businesses are moving from urban areas to suburban areas, where they can find more affordable office space and a better quality of life for employees. Employees care first and foremost for their families and will choose to remain at a company that moves for their happiness. 

2. Increased Demand for Distribution Centers

E-commerce is booming! Businesses need logistics hubs for warehousing and distribution of their products. This trend impacts long-distance moves as companies expand or relocate their operational facilities.

They want:

• Proximity to Public Transportation: Companies want locations near major transit options to get their goods where they need to be. Think about shipping ports and airports- these areas are prime real estate and are in high demand in 2024.
• Availability of Space: As demand for warehousing increases, businesses must assess available real estate options in their desired locations, impacting the moving process.

3. Real Estate Prices Continue To Rise

Rising real estate prices are influencing business relocations. Companies are starting to find themselves asking the question of whether to move to more affordable areas to save or invest in high-cost locations. They do a cost-benefit analysis to figure this out. Businesses are weighing the costs of moving against potential long-term benefits, such as access to a better workforce and growth. As the cities become extremely expensive, it just doesn’t make sense to remain. For smaller start-ups, high-priced real estate is just not an option. Also, rising costs have started to push companies to consider renting space instead of buying, and this has changed their moving strategies.

4. Environmental Sustainability Governance 

Sustainability has become a priority for many businesses, influencing their real estate decisions. ESG reports are now mandatory for the big companies and they consider this in their real estate decisions. This trend affects long-distance moves in many ways:

• Green Building Initiatives: Companies want to find spaces that meet sustainability standards, impacting their choice of location and the type of buildings they occupy. They will pay more for carbon-efficient spaces that will in turn give them carbon credits, saving them taxes.
• Long-Term Investments: Businesses are considering the long-term environmental impact of their moves, often choosing locations that support sustainability goals. Moving is an environmental nightmare due to the amount of plastic used, cartons thrown away, and gas used. 

5. Technology 

Advancements in technology are reshaping the commercial market and influencing business relocations. AI isn’t just helping us write school papers, but it is even affecting the real estate market as a whole

• Smart Buildings: The demand for smart building technologies is rising, prompting companies to consider spaces that integrate these features.
• Virtual Tours and Remote Assessments: Businesses use AI and other technology to remotely assess potential locations to move their offices, this can affect the results. Back in the day, the office manager would be in charge of finding the new location and they could personally be influenced by personal factors. 

6. Economic Volatility of the Market

Economic changes in the stock market create financial challenges for businesses considering long-distance moves. Economic uncertainty can lead to cautious decision-making, ultimately delaying moves until market conditions stabilize as we all have seen over the past years, wars, pandemics, and more cause the market to change rapidly. When this happens to their shares, companies may have to reassess their budgets, impacting their ability to invest in new locations.

7. Urbanization

Improved infrastructure, amenities, and cultural fun sites play a role. Companies are moving to remade urban areas to attract and keep their talent, particularly younger workers seeking fun environments. To attract a good worker in 2024 is not simple. As companies move out of these urban centers, the competition for commercial space gets bigger which then in turn impacts the relocation strategies of other companies. It is a bit of a snowball effect.

Trends Always Change

Real estate market trends impact long-distance business moves and we have seen many fluctuations in the past decade. Market trends influence decisions for companies about location, space requirements, and overall strategy for moving. As businesses navigate these trends, and understand the implications, they make their real estate decisions.  Understanding market trends is essential for businesses to make informed decisions about their real estate needs. This is where the importance of real estate appraisals comes into play. Appraisals provide an objective evaluation of properties, taking into account current market conditions and trends. This information is crucial for businesses to determine the value of a property and make strategic decisions for their long-distance business moves.

By reading articles just like this and really staying informed about the market dynamics, companies can make more strategic decisions that meet their workforce needs. For a company to complete a successful long-distance move, they need to be adaptable and understand the market trends. 

Frequently Asked Questions

When would one use a packing service?

Professional packers will work at Lightspeed to pack all your items safely and in record time. While you might get stuck sorting through old nostalgia, they will have your entire home packed up and bubble-wrapped in no time. If you are in a rush, stuck at work, have young kids, or are elderly, this option should be seriously considered.

Is a garage sale really profitable and worth my time?

Yes if you have the capacity to do so during the moving process. Depending on your advertising methods and the items you bring in, a garage sale can be a great way to make a few extra hundred bucks! Organizing and managing a garage sale can be very time-consuming, so consider this before starting, as donating your unwanted items might be a better fit.

How do I help my pets adjust to the changes of moving?

Pets pick up on our energy and need a common schedule. If you are stressed, you are likely to stress out your furry friend. Try and make the experience fun for them with lots of walks and treats. Associate the move with positive things your pet loves to make the day less hard for them. Ensure to set up their home base as soon as you get into the new home so that they can feel they have their own corner with food, water, and their bed. Try and send them to doggy daycare the day of the move to avoid stressing them out.

How can I make a lofty moving goal realistic and attainable?

Every time you finish packing up another box or room, take a moment to celebrate your accomplishments. Acknowledging the small milestones helps you reach the bigger ones. This will keep you motivated and boost family morale. Finishing up packing a room and cleaning it out is a bigger task than usual. Reward yourself and your family.

Why should I take the time to build a personalized moving inventory list?

Having your own moving inventory list is likely to be helpful for insurance claims and just to keep things clear when packing and unpacking. This list will be your guide to knowing everything that needs to fit in your new home.