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2025 Commercial Real Estate Outlook: Key Predictions and Insights

As we approach 2025, the commercial real estate (CRE) landscape is poised for significant transformations. Drawing from industry analyses and emerging trends, here are eight key predictions shaping the future of CRE:

  1. Data Centers Leading Performance: With the exponential growth of digital data, the data center sector is expected to outperform other CRE sectors, driven by increasing demand for cloud services and digital storage solutions.
  2. Interest Rate Reductions: The Federal Reserve is anticipated to continue lowering interest rates, aiming to stimulate economic growth and investment within the CRE market.
  3. Rise of Shadow Spaces: The emergence of ‘shadow spaces’—areas repurposed for temporary or alternative uses—is set to become more prevalent, offering flexible solutions in the evolving market.
  4. Retail Sector Evolution: Retail spaces are expected to undergo significant changes, adapting to new consumer behaviors and technological advancements to remain competitive.
  5. Industrial Sector Growth: The industrial sector is projected to continue its expansion, fueled by the rise in e-commerce and the need for efficient logistics and distribution centers.
  6. Office Space Reimagined: Office environments are likely to be redefined, focusing on flexibility and adaptability to meet the changing needs of the workforce.
  7. Sustainability and ESG Prioritization: Environmental, Social, and Governance (ESG) considerations are expected to take center stage, with a growing emphasis on sustainable and socially responsible investments.
  8. Technological Integration: The integration of advanced technologies, including PropTech solutions, is set to revolutionize property management and tenant experiences, enhancing efficiency and engagement.

At Cohen Commercial Realty, Inc., we are committed to staying at the forefront of these developments, ensuring our clients are well-informed and strategically positioned to navigate the evolving CRE landscape in 2025 and beyond. Cheers to the new year, wishing everyone a successful 2025!

For a more in-depth analysis, you might find the following resource insightful: https://www.youtube.com/watch?v=iNKTr9Jnnxg&t=16s

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Odd Burger Expands into Florida: 40 New Locations Planned

Exciting news for vegan food lovers! Odd Burger, the Canadian quick-serve vegan chain, is set to open 40 new locations across Florida over the next eight years. This announcement comes on the heels of their previous agreement to launch 20 locations in Washington state, adding to their current roster of 16 locations in Canada.


Odd Burger offers a diverse menu featuring vegan burgers, sandwiches, wraps, salads, breakfast items, and desserts, catering to a growing demand for plant-based dining options. Their expansion strategy in the U.S. involves partnering with area representatives who have a deep understanding of local markets. These representatives play a crucial role in securing franchise partners, assisting with site selection, overseeing construction, and providing ongoing support.


The partnership with StarMatt Corporation, led by Prashant Dalal and Vishal Valsadia, marks a significant step in Odd Burger’s U.S. growth. Dalal, a co-founder of Odd Burger, brings expertise as the area representative for Ontario, while Valsadia offers valuable experience in real estate and commercial development.


Stay tuned for more updates as Odd Burger continues to make its mark in the fast-casual dining scene!


Boyd, Mike. “Vegan Burger Chain to Open 40 Florida Locations.” Connect CRE, 20 May 2024, www.connectcre.com/stories/vegan-burger-chain-to-open-40-florida-locations/.

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Florida: The New Frontier for International Business Expansion

By Commercial Brokers International

Florida’s dynamic business landscape is attracting international companies and brands at an unprecedented rate, creating exciting opportunities in the state’s commercial real estate market. As a worldwide trading hub and gateway to the Americas, Florida provides unique advantages that are drawing international investment and fueling economic growth.

Why Florida?

  1. A Thriving Economy

Florida’s economy is the fourth largest in the United States and the 14th largest globally, outperforming nations such as Indonesia and Spain. Florida offers a huge market opportunity for foreign enterprises, with a population of 22 million people and an economy worth more than a trillion dollars. (Source)

  • Strategic Location

Florida provides unmatched access to emerging markets as the main commercial gateway to Latin America and the Caribbean. The state is a great starting point for businesses wishing to reach throughout the Americas because of its advantageous geographic location and sophisticated multimodal infrastructure. (Source)

  • Business-Friendly Environment

Florida’s pro-business climate consistently ranks it among the most business-friendly states in the U.S. Key advantages include:

  • Low taxes and no income tax
  • Favorable regulations
  • Competitive costs of living and doing business
  • Skilled Workforce

Florida provides multinational businesses with a vast talent pool of highly educated, technically proficient, and culturally diverse workers, numbering 11.1 million. The state’s concentration on higher education, with 12 public universities, provides a consistent supply of skilled workers.

Florida stands out among other states for its thriving economy,
strategic location, and skilled workforce

Impact on Commercial Real Estate

The influx of international companies is having a significant impact on Florida’s commercial real estate market:

  • Office Space Demand

As more international firms establish their presence in Florida, demand for office space is likely to increase, particularly in major business hubs like Miami, Orlando, and Tampa.

  • Industrial and Logistics Growth

Florida’s role as a global trade hub is driving demand for industrial and logistics properties. International companies are seeking warehouse and distribution facilities to support their operations.

  • Retail Expansion

International brands entering the Florida market are fueling demand for retail spaces, from high-end shopping districts to mixed-use developments.

  • Technology and Innovation Centers

With Florida’s growing reputation as a center for innovation, international tech companies are likely to seek out spaces for research and development facilities.

Global businesses are rising in Florida commercial real estate market

Outlook and Opportunities

The future looks bright for Florida’s commercial real estate market, driven by international investment and remains open for business to the vast majority of international investors. The state’s economic development agencies continue to actively court foreign direct investment, offering resources and support for companies looking to establish or expand their presence in Florida.

For commercial real estate professionals, this influx of international business presents exciting opportunities. From helping companies find the perfect office location to developing state-of-the-art logistics facilities, there’s never been a better time to be in Florida’s commercial real estate market.

As Florida continues to attract global talent and investment, we can expect to see sustained growth and innovation in the commercial real estate sector. Whether you’re representing an international company looking to enter the Florida market or a developer seeking to capitalize on this trend, the Sunshine State offers a wealth of opportunities in the years to come.


If your business is looking to expand nationwide, our CRE Affiliate Network can help you smoothly extend your reach to multiple prosperous states in the country. The journey starts in Florida, and goes beyond.

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Six New Projects Reshaping the Future of West Palm Beach

West Palm Beach, often dubbed “Wall Street South,” is rapidly becoming a key destination for finance and urban living. With multiple new downtown districts in development and a surge of high-rise buildings, the city’s skyline is transforming into a vibrant hub for residents, businesses, and investors alike. Here’s a closer look at six exciting projects leading this evolution:

  1. Nora District
    The Nora District is set to become a 40-acre hospitality haven in Downtown West Palm Beach. Groundbreaking for Phase I took place in June 2023, with a completion target of early 2025. This vibrant area will feature over 150,000 square feet of retail, dining, and office space, reimagining historic railway warehouses into modern venues. Notable retailers include Loco Taqueria, H&H Bagels, and Juliana’s Pizza, alongside a brand-new boutique hotel.
  2. CityPlace
    Undergoing a major redevelopment, CityPlace will introduce two impressive office towers designed to attract leading financial firms. The East Tower is poised to be the tallest office building in the county, complemented by a luxurious residential tower called “The Laurel.” Enhancements to public spaces will create a more welcoming atmosphere, making it a premier destination for all.
  3. The District at Northwood
    This 4.6-acre site in Northwood Village is transforming into a vibrant community hub, featuring a multifamily residential complex with 382 units, including workforce housing. The project will offer 63,000 square feet for commercial use, enhancing the local dining and retail scene, along with 12,000 square feet of public open space for community gatherings.
  4. West Palm Point
    A new landmark office tower is on the way at 801 South Dixie Highway, designed by renowned firm Pelli Clarke Pelli. The 24-story West Palm Point will include 447,484 square feet of office space, ground-floor retail, and a 10-story parking garage. With plans for a
    pedestrian-friendly Paseo and ample green spaces, it aims to integrate seamlessly into the urban landscape.
  5. South Flagler House
    Led by billionaire Stephen M. Ross, this luxury condominium project is making waves in West Palm Beach. Featuring two 28-story towers with 108 units, the South Flagler House will offer high-end living along the Intracoastal Waterway. Ranging from 2,000 to over 13,000 square feet, these residences come with premium amenities and stunning views, targeting an affluent clientele transitioning to high-rise living.
  6. Mr C. Residences
    Set to debut in late 2026, Mr. C. Residences promises to blend upscale living with exceptional hospitality. This 27-story development will feature 110 hotel rooms and 146 branded residences, all designed with luxurious finishes and private terraces. Residents can enjoy a rooftop restaurant, a chic café, and an exclusive members’ lounge, creating a vibrant social atmosphere.
    As West Palm Beach continues to grow and attract new investment, these projects are not just reshaping the skyline but also enhancing the quality of life in this thriving city. Stay tuned for more updates on this exciting urban transformation!
    Nicholas, J. (2024, July 15). Six new projects are reshaping the future of West Palm Beach. Florida Tomorrow. https://www.floridaoftomorrow.com/post/six-new-projects-that-are-reshaping-the-future-of-west-palm-beach
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Commercial Real Estate Investing: A Beginner’s Guide to Getting Started

A Beginner's Guide to Getting Started in Commercial Real Estate Investing

Commercial real estate (CRE) encompasses properties used for business purposes, ranging from office spaces to retail storefronts, medical facilities, and industrial warehouses. Contrary to popular belief, CRE isn’t limited to just business buildings; it also includes land used for profit and large residential rental properties like apartment complexes.

Types of Commercial Real Estate

CRE covers a variety of property types:

  • Office Spaces: Buildings used for business operations.
  • Industrial Spaces: Warehouses and manufacturing sites.
  • Retail Spaces: Storefronts and shopping centers.
  • Medical Buildings: Hospitals and healthcare facilities.
  • Storage Facilities: Spaces for storing goods.
  • Apartment Buildings: Structures with five or more units.
  • Restaurants, Hotels, and Resorts: Properties for dining and accommodation.

How Commercial Leases Work

When a business leases a space, they enter into a lease agreement with the property owner. There are three main types of commercial leases:

  1. Gross Lease: The landlord covers all property expenses, including taxes and maintenance.
  2. Net Lease: The tenant pays rent plus additional expenses like taxes and insurance. Variants include single, double, and triple net leases.
  3. Modified Gross/Net Lease: Offers flexibility in expense negotiations, with a fixed monthly rent.

Triple net leases are common, where tenants cover all operating expenses, leaving the landlord with only mortgage and tax responsibilities.

Investing in Commercial Real Estate

Investors can choose between direct and indirect investment options:

  • Direct Investment: Buying and managing a property personally or through a partnership. This method offers control and potential tax benefits but requires substantial capital and is less liquid.
  • Indirect Investment: Purchasing shares in a real estate investment trust (REIT) or through crowdfunding platforms. This approach allows for smaller investments and offers diversification without hands-on management.

Key CRE Terms to Know

Familiarize yourself with essential CRE vocabulary:

  • Net Operating Income (NOI): Income after operating expenses.
  • Cap Rate: NOI divided by the property’s purchase price.
  • Debt Coverage Ratio (DCR): NOI divided by annual debt payments.
  • Zoning: Regulations on property use and construction.
  • Triple Net Lease: Tenant pays all building expenses beyond rent.

Building Your CRE Network

To succeed in CRE, build relationships with:

  • Commercial Real Estate Agents: Assist with property searches and market trends.
  • Property Managers: Handle tenant interactions and maintenance.
  • Lenders/Mortgage Brokers: Facilitate property financing.
  • Insurance Agents: Provide property and liability coverage.
  • Contractors/Handymen: Manage repairs and renovations.
  • Attorneys: Handle legal matters and contract reviews.

Is CRE Investing Right for You?

CRE investing offers diversification and potential profitability, particularly for those with substantial capital or those who can start with smaller investments through modern platforms like REITs and ETFs. Evaluate if CRE fits your goals by considering:

  • Initial investment size.
  • Competition and market demand.
  • Lease stability and income consistency.
  • Professional assistance needs.

In summary, commercial real estate presents diverse opportunities and requires a solid understanding of property types, lease structures, and investment strategies. Whether starting with small investments or diving into larger deals, having the right knowledge and team is crucial for success.

Works Cite

Lee Huffman                                                                                                                                                                  Edited by : Becca Borawski Jenkins. “Commercial Real Estate Investing: A Beginner’s Guide to Getting Started [2024].” FinanceBuzz, 13 May 2024, financebuzz.com/commercial-real-estate-investing. Accessed 26 Aug. 2024.

https://financebuzz.com/commercial-real-estate-investing

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Best Practices in Buying Commercial Real Estate

Navigating the commercial real estate (CRE) market can be a rewarding venture, but it requires careful planning and execution. Whether you’re eyeing shopping centers, warehouses, or multi-family residential buildings, understanding the best practices can make your investment process smoother and more successful. Here’s a comprehensive guide to help you on your journey.

Understanding Commercial Real Estate

Commercial real estate refers to properties used primarily for business purposes and income generation. These properties include:

  • Shopping Centers and Storefronts: Retail spaces designed for various businesses.
  • Warehouses and Industrial Properties: Facilities for manufacturing, storage, and distribution.
  • Large Residential Rentals: Condominium buildings or apartment complexes with more than five units.
  • Medical Buildings: Hospitals, clinics, and other healthcare facilities.

Seven Essential Steps for Buying Commercial Real Estate

  1. Clarify Your Investment Goals: Before diving into the property market, understand why you’re investing in commercial real estate. Are you seeking income, tax benefits, or portfolio diversification? Defining your goals will provide direction and help you stay focused throughout the process.
  2. Evaluate Your Options: Commercial real estate comes in many forms, from office spaces to industrial sites. Determine which property type aligns with your investment strategy and comfort level. Each type has distinct management and operational requirements.
  3. Secure Financing Early: Obtain financing before you start searching for properties. This step will not only streamline your search but also prevent potential disappointments. Knowing your budget in advance allows for quicker decision-making and smoother transactions.
  4. Partner with Experts: Engage with experienced professionals such as commercial real estate agents or attorneys. Their expertise can guide you through the complexities of the market and ensure that your transactions are handled efficiently and legally.
  5. Find the Right Property: With your goals and financing in place, begin your property search. Stick to properties that align with your investment criteria and objectives. A great property is one that helps you achieve your investment goals, not just a good deal.
  6. Conduct Due Diligence: Thoroughly investigate each potential property. Evaluate risks, rewards, and how well the property fits your needs. Detailed analysis will help you avoid costly mistakes and ensure the property benefits your investment portfolio.
  7. Close the Deal: Once you identify a suitable property, make an offer with a contingency clause, such as an inspection contingency, to protect yourself. Ensure that all necessary insurance is in place and that all documents are reviewed before finalizing the purchase.

The Bottom Line

Investing in commercial real estate can offer significant benefits, including income potential and portfolio diversification. By following these best practices and working with knowledgeable professionals, you can navigate the CRE market with confidence and make informed decisions that align with your investment goals.

Find more wonderful Commercial Real Estate information at Forbes.com! Sonenreich, Aviva. “Council Post: Best Practices When Buying Commercial Real Estate.” Forbes, Forbes Magazine, 13 Aug. 2024, www.forbes.com/sites/forbesbusinesscouncil/2023/01/24/best-practices-when-buying-commercial-real-estate/. Accessed 21 Aug. 2024.

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Navigating the Landscape of Commercial Real Estate

Commercial real estate (CRE) is a multifaceted industry encompassing properties solely dedicated to business purposes. Unlike residential real estate, which predominantly comprises homes, CRE includes diverse assets like shopping malls, medical offices, and senior living communities. Understanding the fundamentals of CRE is paramount for various stakeholders, from brokers to investors and lenders.

Learning about CRE differs from residential real estate due to longer lease terms, larger spaces, and higher capital requirements. Market dynamics within CRE vary significantly across different property types, necessitating a nuanced approach to research and analysis.

The COVID-19 pandemic highlighted how market conditions affecting one CRE sector can differ dramatically from another. For instance, while e-commerce growth boosted warehouse demand, it posed challenges for retail properties. Similarly, shifts in travel impacted the hotel sector, while multifamily properties benefited from increased rental demand due to mortgage rate hikes.

Within the multifamily sector, properties are classified into Class A, B, and C based on factors like construction quality and location. Class A properties, often luxurious with top-tier amenities, command premium rents and attract high-quality tenants. In contrast, Class C properties may require renovation and cater to tenants with lower credit scores.

Affordable housing, senior housing, and student housing are niche segments within multifamily, each serving specific demographic needs. Industrial properties, including warehouses and flex spaces, cater to long-term tenants and experienced increased demand during the pandemic due to e-commerce growth.

Office properties, categorized into classes based on quality and amenities, saw a shift in demand towards more desirable, comfortable spaces post-pandemic. Medical offices, tailored for outpatient services, and retail properties, ranging from malls to single-tenant outlets, face unique challenges and opportunities in an evolving market.

Hotels, with tiers ranging from economy to luxury, cater to short- to medium-term visitors, each offering distinct amenities and experiences. Self-storage facilities, bridging industrial and retail sectors, provide storage solutions to individuals.

Land encompasses agricultural, infill, and brownfield sites, each presenting different development opportunities. Non-competitive CRE includes government buildings and schools, outside the conventional commercial real estate market.

In conclusion, navigating the complexities of CRE requires a comprehensive understanding of its various sectors and subcategories. Whether you’re an investor, developer, or tenant, staying abreast of market trends and property dynamics is essential for success in this dynamic industry.

Article for reference: https://cre.moodysanalytics.com/insights/cre-trends/types-of-commercial-real-estate/