The coronavirus pandemic has presented huge challenges to the real estate industry. Real estate professionals face new obstacles, such as looking for buyers during an economic downturn and adhering to a virtual work routine. The current situation is expected to affect real estate trends in the coming months and years.
If you are in the commercial real estate industry, be prepared for what lies ahead. Below are some of the factors driving commercial real estate trends in the coming years.
1. Smart Amenities
Smart amenities and buildings hold significant roles in the commercial real estate industry’s future. Smart technology is no longer filed under nice-to-have features. It’s now an absolute necessity in every workplace, helping improve facilities and catering to the needs of tenants. It can reduce maintenance and operating costs, and collect extensive data insights and analytics that can be used to make significant decisions.
2. Remote Work Is Now a Long-Term Reality
The longer employees operate off-site, the more corporations realize the benefits of remote work, including stronger work-life balance for their employees. This gives the commercial real estate industry an uncertain future, but through flexibility, brokers can still thrive.
Commercial developers may focus on constructing workspaces that are more relaxing and engaging, and less formal. Moreover, they can convert traditional offices to workstations that startups and freelancers can rent, depending on their unique needs.
3. Increased Demand For Essential Businesses
Stability and quality are the keys to long-term success. More and more investors are reallocating their capital to essential businesses such as dollar stores, grocery stores, pharmacies, medical companies, and food businesses. Brands and companies in malls, such as hair salons and nail salons, have previously been immune to economic downturns, but are now in danger of intermittent shutdowns.
4. Importance of Rental Property Amenities
While commercial properties are nearly empty, time spent at home has never been higher. The trend of renters looking for suitable properties is not really new, but because of the pandemic, the value of amenities, such as gyms, dining options, and co-working lounges has never been higher.
5. The Rise of Hybrid Workers
Once everything goes back to normal, a big part of the workforce will only come to the workplace two to three days a week. This is down from five days each week, dramatically changing how commercial real estate assets are used and valued.
6. High Demand for Industrial Properties
The higher demand for eCommerce purchases will continue to fuel a strong interest in warehouse spaces. The surge in online shopping, as well as new factory improvements and productions in the international trade, mean that the industrial real estate sector has demonstrated encouraging performance amid the pandemic. There are also tons of opportunities for investors who want to convert their office and retail properties into multi-tenant industrial facilities.
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