Commercial Real Estate Trends for 2020
Commercial real estate is constantly evolving. This is true not only for architectural considerations, but in the ways businesses are thinking about their space in general. New affordances are becoming more widely available. Employee and customer preferences are continually evolving.
These changes need to be addressed in order to get the most out of your commercial real estate here in Nashville, TN. Our city is constantly growing. This brings more people to the area looking for jobs, leisure, and retail options. This provides great opportunities for businesses to expand, but they have to be on top of the coming trends. Otherwise, they stand the chance of being left behind while other companies attract increased attention.
There are many different versions — such as office space and retail space — but there is some overlap between influencing factors. Here is what to watch out for in 2020.
Technology is constantly advancing at an almost alarming rate. It can be difficult to keep up with the continuous changes. However, it can be quite advantageous to stay on top of the new opportunities afforded by these advancements.
Commercial spaces are becoming increasingly willing to incorporate new technologies like artificial intelligence. This can help the space in various ways like keeping a count of customers in a retail space, or allowing entry to workers in an office space. Smart buildings are becoming increasingly popular and will continue to make advancements in the future.
Open office plans are nothing new, but they will continue to be a common practice in 2020. Many businesses are becoming more interactive. They are encouraging teams of employees to work together to complete their tasks. This means they need spaces in which they can comfortably work together.
Office spaces consisting of rows of offices or huddled cubicles are quickly becoming a thing of the past. Open areas encourage collaboration between employees as well as providing a work space that doesn’t feel quite so closed off.
Many remote workers and smaller businesses are electing to forgo purchasing their own commercial real estate in Nashville, TN altogether. This has made the space-as-a-service business model increasingly popular.
Companies like WeWork provide office space to individuals which they rent for short amounts of time. This allows them to do their daily work without the need for long-term contracts or purchasing the space themselves. This model has demonstrated a desire for such a service so expect more space-as-a-service commercial real estate to emerge.
The retail industry is going through changes. Consumers are becoming increasingly willing to make their purchases online. This has led retail businesses to adapt the way they think about their commercial real estate.
Shipping and storage are quickly becoming more important. Smaller retailers are using their commercial real estate to house potential deliverables until it’s time to ship them out. And larger retailers are taking proximity to storage facilities into account. The habits of retailers will continue to evolve as consumer habits change.
Location is important. So are local amenities. Employee and customer habits play a large role in a successful office space or retail space. Luckily, data is becoming more easily available on these and many other subjects that can play a large role in where a business decides to purchase commercial real estate.
Out-of-state companies are continually looking at commercial real estate in Nashville, TN because the data shows a strong workforce and potential for growth. Data like this will continue to be used in these decisions.
Boutique Hotels Revamp Old Structures
Nashville is seeing a boom in the hotel industry. These commercial spaces are repurposed from previous office spaces, banks, and out-of-date hotels. Boutique hotels offer high-end amenities and often feature their own built-in retail spaces. This effectively combines commercial retail space on top of itself.
And as Nashville continues to be a large draw for tourists, these structures will continue to be in demand. Expect more of these well-designed establishments to open up and become a destination for conferences, meet-ups, and much more.
Combining Business and Leisure
Large structures have combined living quarters with commercial spaces for years. Various floors of highrise structures are used for different purposes. And this trend continues in Nashville with structures such as the Fifth and Broadway project which will offer residential units with direct access to multiple commercial real estate spaces.
This provides unique opportunities not only to the residents, but to the businesses. And with Nashville frequently adding new construction projects, we can expect to see more of these mixed-use establishments.