Navigating Today’s Commercial Real Estate Market
It’s no secret—the commercial real estate landscape has been through a whirlwind over the past few years.
I’m Scott Elkins, a veteran of 37 years in commercial real estate brokerage throughout Northern Virginia and the greater DC metro area. My background also includes senior executive experience in corporate banking at Sovran Bank, giving me a unique perspective on both sides of the deal—real estate and finance.
While headlines often spotlight struggling high-rise towers, there are still vibrant opportunities in today’s market.
The CRE Market Snapshot
- Retail: Resilient in well-located submarkets.
- Medical & Warehouse: Surging demand and low vacancy.
- High-Rise Office: Facing serious headwinds with refinancing rates jumping from 4% to 8%, slashing property values up to 40%.
Where the Smart Money Is Moving
Even in a volatile market, there are bright spots. Here are three commercial sectors gaining real traction:
- Boutique Medical & Dental Suites – Fairfax &
Loudoun County
Smaller practices are shifting toward ownership, especially with SBA financing making it surprisingly affordable. - Flex Warehouse Condos – Prince William & Manassas
Corridor
Hybrid office-warehouse spaces are ideal for contractors and last-mile logistics. High demand is being seen from both investors and users. - Office-to-Residential Conversions – Arlington &
Alexandria
Class B office buildings near Metro stations are now being targeted for mixed-use or residential transformations, driven by zoning changes and urban migration trends.
Why Small Buildings Still Shine
Small commercial buildings continue to offer:
- Stable and predictable investment returns
- Flexibility for owner-users and niche operators
- Growing seller negotiability and easing interest rates
Commercial real estate is cyclical. The winners are those who stay informed, nimble, and ready for the next wave of opportunity.
