No more COVID-19! We all wish this were true. This pandemic stopped CRE trends in their tracks and has everyone scratching their heads as we revamp our sales offerings and re-tune our future focus.
Commercial property owners have been fielding issues on all fronts, with tenants struggling to pay their rents and record unemployment numbers.
Let us fast forward six months to the one-year anniversary of the shutdown… What are the new trends in commercial real estate? I do not have a magic ball, but here are TeamPAR’s predictions.
- Warehousing. As more consumers turn to online shopping retailers need to adjust from traditional brick and mortar to shipping, receiving and logistics on demand. Last-mile warehousing & micro-shipping hubs are newer terms and helps smaller retailers stay current and fulfill their orders while controlling their logistics and shipping costs. Retail as we “knew it” will never be the same again.
- Micro-Apartments. These living units are smaller than your typical residential apartment (they are 200 – 400 SF on average) but such complexes are heavy on the amenities, which promotes community and provides space for activities outside of the living quarters. Younger residents find significant value in micro-apartments because they are spending less on rent and can spend more money on experiences and fun activities. Micro-apartments can also be significantly more profitable for investors.
- Smart buildings. Big data provides the ability to gain unique and specific insights into buildings, which allows facility management teams to make informed and proactive changes to increase efficiencies, sustainability, and cost savings. Building automation will become key to prevent cross contamination on surfaces and making necessities (faucets, lighting, heating, and cooling changes) touchless. People will always need to come together, but the building size and frequency will decrease.
What will become of traditional malls? Personally, I think they should be turned into communities with food stores and food courts anchoring the apartments with a built-in, indoor walking path (that already exists!) I can see it now! (I wish I had the funding to make it a reality.)
We are all in uncharted waters, but TeamPAR is comprised of professional problem solvers. Let us help you rebuild your environment to meet your company’s new needs. We are ready and welcome your challenge… Let’s solve it, together.