The tech and commercial real estate (CRE) industry are becoming more closely intertwined. However, the relationship is complex, and a booming tech industry is shifting growth and decline in different sectors.
The Urban Land Institute (ULI) recently forecasted the CRE industry’s movement in Emerging Trends in Real Estate 2015. One of the ULI’s core platforms was, “Real Estate’s Love/Hate Relationship with Technology Intensifies,” which examines how we, as commercial real estate brokers, must adapt to the impact of tech growth on retail, industrial and office space.
- Tech businesses are driving office growth. Especially in core markets, tech companies are replacing the financial industry as the largest buyers and leasees of office space. These businesses do have unique office needs, often requiring flexible meeting rooms, server space and room to grow.
- Retailers see the internet as competition and a marketing tool. The internet and social media can help recruit foot traffic to brick-and-mortar locations, but the convenience of online shopping poses a threat to in-store sales.
- Warehouse space is a hot commodity. Stores are reducing inventory, but demand for ecommerce next day delivery is putting fulfillment center warehouse space in high demand.
At Intelica, we keep a constant pulse on the changing industry. We have an Industrial Brokerage Team that can assist with investments in a rapidly growing warehoue sector. Our Retail Brokerage Team can help identify prime locations to maximize convenience for your target demographic to help better compete with online retailers, and the Intelica Office Brokerage Team specializes in using market research to help our tenants and buyers make informed decisions about their business space.
What are your thoughts on the “love/hate” relationship of tech and CRE? Talk to us today.