Technology is shaping the commercial real estate industry more than ever, and it’s up to us to stay ahead of the moving trends. Let’s review how evolving technology is changing supply and demand in our future.
OFFICE SPACE REQUIRES LESS SPACE AND MORE MOBILITY
Laptops, smartphones and video conference technology have made it easier than ever for employees to work remote, whether from home, across the country or the local coffee shop. Corporations are adapting to the changing workforce by opting out of big, stuffy office buildings in lieu of more nimble collaborative workspaces with open concepts like glass partitions.
REBusiness Online adds insight to these collaborative workspaces, “New technologies, coupled with an emerging workforce demographic, are driving innovative workplace productivity strategies across the board, but the impact of these shifts on the amount of office demand will be minor compared to the impact on the nature of the office demand.’”
STOREFRONT NATURAL SELECTION
E-commerce is rapidly growing, and in its path to success, there have been some retail brokerage casualties. Once familiar outlets like Blockbuster and Borders are among some of the victims unable to compete with the convenience of online shopping. However, smart retailers are adapting to the changing buying habits by reducing storefront footprint and investing in e-commerce. Early adapters are expanding fulfillment centers and larger distribution centers.
FLOCKING TO URBAN HOUSING
People may be shopping online and working from home more often, but they are living in the thick of things more than ever. There is a resurgence in urban living spaces. According the Urban Land Institute, 14% of millennials live downtown or close to a downtown area, and 34% live in a city or neighborhood just outside of a downtown space. The increased demand for urban residential space presents a new trend in multifamily living. More and more vacant, traditional office space is being renovated into new apartment space in our local markets.
Technology is evolving at lighting speed and with it the commercial real estate market. We’ll keep you on the leading edge of market forecast and trends. Contact us with questions and comments. We’d love to talk more.