With virtual meetings, 3D walkthroughs, the shift from centralized offices to remote work, buying, leasing, and selling trends all changing, many have questions about commercial real estate’s future.
As always, commercial real estate trends will continue to change as they are influenced in the coming months – but it is still necessary to be prepared by understanding the most up-to-date predictions and projections.
Brisky Net Lease has highlighted the most critical factors influencing commercial real estate trends this year and beyond.
What Factors Are Driving Commercial Real Estate Trends?
As municipal, regional, and state governments impose limits, smart amenities will move from ‘nice-to-have’ to ‘must-haves’. Adoption was already on the rise before Americans began staying closer to home, and it is expected to continue in the coming months.
Smart amenities like smart lights and locks are becoming increasingly popular in commercial real estate. These smart upgrades give real value and are well worth investing in.
Less Demand for Traditional Commercial Office Space
Today, the status of office spaces is on an unsure footing. The growing movement toward virtual work forced many businesses to adapt quickly. And many organizations may discover that they can function just as well without the overhead expenditures of owning or leasing a physical workspace.
This could mean that commercial real estate sees a rise in coworking spaces, both traditional and nontraditional ones such as workspace cafes and collaboration centers.
Utility Management for Remote Work
Companies weigh the health, safety, and necessity of their staff working remotely against the need for central office locations with backup electrical power, data connectivity, and other security measures to continue sales and operations.
Utilities and security are some of the main factors that companies will be looking to handle successfully and responsibly during periods of telecommuting.
Prioritizing Property Maintenance
Property maintenance has become a central focus in recent years. Consumers are more worried than ever about sanitation and cleanliness, and a well-maintained premise creates confidence by providing everything from pristine floors to regular cleaning schedules.
Businesses will need to invest more in facilities maintenance as it becomes more important to their brand image.
Rental Property Amenities Are Becoming More Valuable
Since many people are traveling and commuting less, some office buildings are emptying, as people spend more time at home. As a result, residential amenities are becoming increasingly important and valuable.
The desire of tenants to have a well-equipped home is not new, but the value of on-site meals, co-working spaces, exercise centers, fast Wi-Fi, and other amenities has never been higher.
As in previous economic changes, there is a considerable reallocation of capital for investment to commercial sectors that are believed to be safer and have more durable cash flows.
Pricing may tighten in the future, and competition will rise in the residential, self-storage, industrial, and medical sectors. At the same time, office, retail, and hospitality may loosen.
Talk to Your Commercial Real Estate Partner
After both the positive and negative changes of the last two years for commercial real estate, many new trends will emerge and continue to grow. Brisky Net Lease wants to be your go-to resource for all things real estate investments.
Our effective and skilled team is committed to providing value to our clients and making sure that their demands and objectives are met.