Upcoming Trends in Commercial Real Estate
Commercial real estate has a huge impact on the world and will continue to dominate the global economy. The subprime mortgage crisis and subsequent economic recession fueled a global debate that shook many of the world’s most powerful financial institutions. These entities know that their survival will depend on how they (re)develop their business strategies for the future. One of the sectors is commercial real estate, widely accepted as having an essential role in defining the future face of human society. So what are the upcoming trends that investors should watch out for?
Technology
It’s about more than finding the right tenant or managing your portfolio. It’s also about staying on top of the latest tech trends and keeping up with the industry’s most cutting-edge innovations. And while there are tons of things on the horizon that will help you grow your business, AI, VR, AR, and intelligent building technologies come in handy:
Virtual Reality (VR) and Augmented Reality (AR)
Virtual and augmented reality have been gaining steam in recent years, and they’re finally ready to make their mark on commercial real estate. These technologies allow you to visualize an entire space before it’s built or renovated. You can walk through it, see what needs fixing, and visualize future changes. This means you’ll be able to save time and money during all aspects of development, from planning to construction.
Artificial Intelligence (AI)
Artificial intelligence is another trend that will change how real estate does business in the coming years. AI allows automating routine tasks like booking appointments, managing customer records, and even handling basic accounting functions like bookkeeping or billing clients automatically based on their preferences or history with the company.
Smart Building Technologies
Smart building technologies are a new trend in commercial real estate. These technologies improve energy efficiency, safety and security, and the user experience. Smart building technology includes sensors for lighting, temperature control or security, cameras for monitoring, and software that allows you to swipe your smartphone to unlock the front door or activate your office lights from home.
Inflation
Nashville, TN Commercial real estate has had a great hedge against inflation for years. As inflation rises, so do the prices of buildings and other assets. This makes it harder for companies to make money from their investments, as they have to spend more and more money to maintain them. Commercial real estate investors should watch out for the following factors that can affect their bottom line:
- Rising interest rates
- Falling vacancy rates
- Higher construction costs
Well, you can get much more for less if you’re a buyer. As prices rise, sellers are forced to sell their buildings at a discount, and someone is always willing to buy them up. For a seller, however, the property might be worth less.
Upgrading Rental Homes
About half of Americans work from home for most of their time. As a result, they need more space and upgraded living rooms for their home office. In this regard, commercial real estate should be looking to upgrade rental homes to attract higher-paying tenants.
Light Modular Construction
Light modular construction is a new method of building that uses pre-fabricated modules to construct buildings. It’s faster, more efficient and cheaper than traditional construction methods like stick framing. This method is also environmentally friendly because it uses less energy during the process. It reduces waste at the end of its use cycle since it can be disassembled for reuse or recycling.
Light modular construction has been used in the construction of affordable housing, hotels and student housing. However, due to its fast growth, it will soon become more prevalent in other sectors, such as office space.
Public-Private Partnerships
Public-private partnerships are becoming more common. It is a win-win for everyone and, at the same time, a problem solver. For example, suppose the public-private partnership needs more money to fund certain projects and assistance with funding. The government may help by providing additional funds through equity investment, grants, etc.
Nashville’s Commercial Real Estate at Southeast Venture
Southeast Venture is a commercial real estate company specializing in finding the perfect location for your business. Finding the right spot for your company takes work, so we have combined real estate, design and development to solve all your real estate needs. Our experts will guide you through the process and ensure that your business has everything it needs to succeed. We’re always on the lookout for new trends in the industry, so we’ve put together an overview of what you can expect to see in commercial real estate soon.
If you’re looking to get your foot in this industry, check out our service listing.
