A Real Estate Trend for 2016…Food!
Infinity Property Ventures
We use trends to help us predict what industries, products, and markets will be hot over the next several years. The Real Estate industry is no different when it comes to analyzing data trends. Millennials have created a trend within the Real Estate market mostly because they want to be connected and therefore this generation has begun to migrate into downtown areas. One aspect that has been predicted to create a Real Estate jump is food.
Marilyn Alva wrote an article entitled “Food Feeds Real Estate Development in Edgy Urban Areas” for Investor’s Business Daily on this very trend. One noticeable location that she talked about was Durham, NC. About a decade ago the city seemed to be nearly desolate with most people living in the surrounding suburbs rather than in the downtown area. Today the city has been revitalized with many restaurants, retail establishments, and entertainment venues calling the downtown Durham area home. This clear revitalization is where we can see the fledgling food trend for 2016 begin to grow.
Desolate downtown Real Estate is prime for gentrification, and that seems to be the case according to Alva’s article. At first glance many might ask, “Why develop in these areas that people have fled over the years?” Often times the locations fade away due to many business’s moving operations to other parts of the country or world. This leaves many without jobs which force them to migrate in order to secure work. However, to an opportunistic investor with a vision these areas have the ability for a full make over, and can potentially be done for little investment.
In the case of Durham it took many courageous business owners to establish their startups in the downtown area which as we can see eventually revitalized the area. Real Estate again took a foothold in the area when condo rental properties, and offices moved into newly renovated buildings as well as brand new properties began to emerge. One reason for this trend is the millennial generation who has begun moving to downtown areas to both live and work.
We can see this potential trend affect a city like Chicago for instance because many tech companies have moved into the city and throughout the Midwest. Tech companies that now call Chicago home have brought many employees with them. They are a great industry for Millennials to gravitate towards due to the simple fact of technology being part of their life from a very young age. Chicago is very eclectic with restaurants and entertainment venues found throughout the city. The food trend that seems to be on tract for 2016 could provide an already vibrant city with more options in the near future for investors to find Real Estate potential throughout Chicago.
The Urban Land Institute and research partner PWC U.S. listed food as one of the top ten trends to watch in 2016. Land in urban areas tend to be inexpensive and often times unused. Restaurants with creative food ideas have moved into these areas which in turn jump starts the revitalization of those areas. Areas in south Chicago have the potential for investors and new businesses to open up shop. The food trend should be closely observed and Real Estate investors that capitalize on this potential opportunity can find themselves in the green and secure themselves as a leader in their industry.