AirBnB is valued at $25.5 Billion! Why you should care.

What does AirBnB and commercial real estate have in common? Quite possibly the largest shift of commercial real estate power to hit the market ever, and a signal that now is the time to buy commercial real estate.

We are witnessing a shift in the way people inhabit physical space, and how we can maximize the efficiency and financial opportunity of that space we own or lease. Oh yea – and creating a lot of wealth along the way.

Read this: a fantastic summary of the coming change in commercial real estate power

Think of it this way: what is your 3 bedroom home worth? You might go ask a realtor to show you the comps. Maybe you would go to Zillow and with a few clicks find out for yourself.

But, what if I asked you what a single bedroom in your house was worth? If I told you about a way you could make $1,000 a month for a single bedroom in your house, would it change your mind about the potential income possibility of that house?

The above question is the basis of a huge disruption about to hit the commercial real estate business model, and why buying commercial real estate now is a very smart investment.

Someone once proclaimed, “Brick and mortar is Dead” in response to questions about the future of commercial real estate. But that was before June 26^th, 2015 – approximately the day that AirBnB was valued at a mind-warping $25.5 Billion dollars.

Read this: AirBnB value soars on future potential

 “Why? Why? Why should you care?” If you are in the commercial real estate business like us, your possibly scratching your head and asking this of me. Why would anyone in commercial real estate care about AirBnB?

The answer I will pose as another question. . .

If you are currently in a commercial lease, and you have unused space in your brick and mortar business location – what’s keeping you from making $1,000 a month by sharing that space with another business? The answer is: only technology.

See this: Excellent info-graphic on the AirBnB model.

If you have an unused conference room in your commercial business sitting empty, or wall space in your retail clothing store unused, or your car re-sell lot has an empty corner, why are you not renting that space out?

Consider this: if Airbnb is worth $25.5 billion dollars based on the individual rooms of homes, (and in some cases couches and futons.) What is the potential value of millions of square feet of commercial office space sitting idle at this very moment?

The answer is: Trillions of dollars.

Welcome to the future of commercial real estate and why the AirBnB model is about to transform commercial real estate, and drive fresh air into the lungs of brick and mortar.

Read this: How HiRise will change the commercial real estate world.

The sharing-economy is on the verge of giving every owner of every business the ability to maximize income of every singe square inch of commercial space, and thereby allow a massive growth of small business and upstarts to fuel a real estate boom unlike anything we have experienced.

If you are considering buying commercial real estate – NOW is the time.

HiRise, Breather, Liquidspace  – all of these new business models follow after the AirBnB concept, and they are already changing the face of commercial real estate.

Read this: Breather open new doors to space and income

Read This: Liquidspace breaks new barriers to leasing space

HiRise is currently operating in Washington D.C. this summer, with plans to go nationwide in a very short time. This will be the first time in history where online transactional marketplaces exist, allowing tenants to search for commercial real estate, by the square foot or by the hour, including signing a lease and paying the rent. That’s a revolution.

This concept will literally offer small business and entrepreneurs the ability to operate on a competitive business level with never before access to office space, meeting rooms, tech space, manufacturing space, retail space, shelf space, all  on a scale we have never experienced economically.

Our advice: Buy commercial real estate now.

Brick and mortar is about to become a widely valued asset that will grow far beyond what the current asking prices are based on. That’s a true game changer.

China Grows as Buyer of U.S. Real Estate

Somebody loves investing in U.S. commercial real estate!

Last month China became the largest foreign investor in U.S. real estate – and that’s “all” real estate from commercial to residential. The dollars are big – the projects are big – bigger question: what will be the long term social & economic impact on the U.S. real estate market?

What is it that drives the Chinese investment boom?  Chinese investments in U.S. real estate was all but nonexistent 15 years ago, now the total is nearly $50 billion and could reach $200 billion in short order according to a new study tracking the accelerating trend.

The United States is the country of choice for China buyers.  Canada in next at No. 2 and Australia at No. 3. Similar moves into U.S. real estate happened with the Japanese back in the 1980’s. Now it’s China’s turn.

Quick Read! La Times looks into the Chinese investment boom into the U.S. real estate market and businesses.

Chinese investors see the U.S. as a bargain following the worst U.S. foreclosure crisis since the Great Depression.  In fact, some cities and towns across the country are cheaper than properties in Shanghai and Hong Kong even today, years after our semi-soft recovery still limps forward.

Want to know more? Check this interactive map following the foreign investment dollars into the U.S. markets.

Home prices in the U.S., coupled with economic uncertainties  in China, and tight regulations designed to curb a fresh housing bubble in China, are driving record Chinese investments into the U.S. residential and commercial real estate markets.

Will the Billions of dollars from China hurt our real estate market? Could a China inspired bubble develop and alter the trajectory of our own bubble recovery, still struggling to find its footing? Will  the luxury real estate market become further detached from U.S. influence and ownership?

CNBC has a great article digging into the implications of this new wave of power flowing onto our shores and shoring up segments of our real estate market.

CNBC investigates the markets in China and their impact on investment dollars flowing into the U.S. at record speed.

All told, Chinese real estate investors are likely to dish out an estimated 1.1 trillion yuan, or $178 billion, buying up properties and investing in BIG long term development projects.

Here is a quick summary of 3 big deals that are setting the standard for the future in both development style and size of investment, giving the U.S. born investors a high mark to compete against.

The Boston Glove looks into the $500 million investment into the Pier-4 luxury development on the waterfront.  9-story tower and 1-acre park planned for where the iconic American restaurant once thrived.

 

SF Business Journal analyses the jaw-dropping $1.6 billion investment into the 2nd tallest building in San Francisco with 1.3 million square feet of office space slated. 

 

Chicago Tribune considers the $900 million being invested into the construction of the 3rd tallest building in Chicago by the Wanda Group Chinese developer.

The take-away: Real estate on American soil has always been firmly planted in the perception of stability. As long as foreign investors see our markets as desirable and a winning long-term gamble, we win with new infrastructure and much needed developments,

We often forget how safe and stable our climate is here at home, and this new surge of foreign dollars should remind us that “waiting” to buy is not the best bet. Buy “now” and wait is our best advice!

 

Name(required)

Email(required)

Website

Comment(required)

Submit

Δ