When it comes to the future of the commercial real estate industry, it is all about disruption. In the last few years, a number of trends have had a significant impact. Moving forward, tech trends will continue to transform the industry in a number of ways. As a result, commercial real estate industry leaders will now need to focus on long-term issues and how they can stay ahead of the coming changes in order to remain competitive.
Below, we review the most vital ways in which tech will continue to have an impact on the commercial real estate industry over the next several years.
1. Talent Battle Will Transform the Demand for Mixed-Use and Office Properties
As the demand for talent continues to grow, it will have a tremendous impact on the commercial real estate industry, including the way in which properties are designed as well as used. In the coming years, the dynamics related to talent will become a vital factor in how projects are developed. This has proven to be particularly true in terms of the millennial workforce, which tends to have distinctive demands when it comes to the workplace experience. As a result of such demands, mixed-use spaces have become increasingly popular and will likely continue to do so in the next several years.
2. The Impact of a Collaborative Economy
As the collaborative economy continues to grow and emerge, the effect on the commercial real estate environment will be undeniable. One of the impacts this trend will have on the CRE industry is the way in which commercial spaces will be redefined. More than ever before, developers will be looking to meet the evolving needs of tenants while simultaneously competing against expanding online marketplaces.
3. Industrial and Retail Properties Will Merge
Same-day delivery along with on-demand delivery are rapidly changing the world of business. Those trends, in addition to technological innovations, such as 3-D printing, are having an incredible impact on both the use and location of industrial and retail properties. Among those impacts is a reduction in inventory holding, which has translated to a decreased demand for warehouse spaces. At the same time, there is an increased demand for smaller and more local distribution centers. In an effort to adapt to rapidly changing technological advances and consumer expectations, flexible store formats will also become increasingly commonplace.
4. Non-Brokerage Services Will Become Increasingly Important
Leaders in the industry will need to evolve while developing new service models in order to meet changing market demands. In particular, it will become increasingly important for firms to focus on client relationship management. Concierge-type services will also become more the norm in an effort to provide long-term service management.
Technology has already had an incredible impact on the commercial real estate industry. Moving forward, that impact will prove to be even more significant as it becomes necessary to meet the evolving demands of consumers.