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Myth vs. Reality: Evaluating Popular Misconceptions in Commercial Real Estate

June 2018
Newmark researchers across the U.S. collaborated to examine six popular commercial real estate myths of 2018 and determine to what extent they are anchored in reality.

Myth: Brick-and-mortar retail is being replaced by e-commerce

Reality: Brick-and-mortar retail remains vital, but a transformation toward experiential retail is accelerating

Myth: Office design is primarily about efficiency and cost control


Reality: Office design is about creating productive workspaces and attracting/retaining talent

Myth: Foreign investors have soured on U.S. commercial real estate

Reality: Foreign investors are becoming more cautious but are still investing significantly in U.S. commercial real estate

Myth: Older, close-in industrial product is often vacant and obsolete

Reality: Industrial locations close to major cities are highly desirable for last-mile distribution facilities

Myth: Suburban office locations are no longer desirable

Reality: Suburban office space is highly desirable to some tenant types, particularly if the space is amenity-rich

Myth: Millennials are the future of multihousing demand

Reality: Seniors and boomers are increasingly drawn to apartment living

The study concludes with action steps for owners, investors, and tenants in light of the implications of our findings.