The customer drives the market--that's true in all types of retail, and it's also true for commercial real estate. Experienced chief executive officers and other commercial real estate gurus are pointing to business consumer trends to help predict the future of real estate transactions. For many, the future seems rife with distribution centers, open-office concepts and multi-story warehouses.
Technology is often the driving factor behind some of these predictions. With an increasing number of consumers shopping online, retail establishments are making way for warehouse and distribution centers. While sites such as Amazon currently command a large chunk of the market, smaller businesses are growing in this space and are likely to need space in cities such as New York in the near future.
Online shopping isn't the only tech trend making waves in commercial real estate. The way modern offices operate changes the way businesses seek space. Historically, businesses looked for spaces that included offices, commons areas, some open work spaces, break rooms and traditional conference spaces. Today, technology means many meetings are held via web conferencing and not everyone comes into the office on a daily basis. For some, a desk for each employee is wasted space.
Businesses today, who are looking to tempt Millennials into the work place, want space for creative collaboration. Instead of cookie cutter office and desk space, many businesses are seeking commercial real estate that allows for game rooms, large break areas, common work spaces and creative designs that can be changed with the daily needs.
By understanding trends, commercial real estate professionals can keep up with market needs. Understanding what the customer wants is the first step to success in real estate. Understanding how to navigate real estate law is the first step to protecting your business and assets when dealing with commercial real estate.
Source: Real Estate Weekly, "CEOs see tomorrow?s technology influencing today?s commercial real estate decision makers," Oct. 29, 2015