3 Disruptors In The Commercial Real Estate Market
What are disruptors? Disruptors in terms of the real estate market might be best described as new trends, technologies or developments, which alter the way business is understood and done in the existing market. This is according to Leon Breytenbach, who is the national manager of the Rawson Property Group’s commercial division.
According to Breytenbach, the commercial property market has endured some amazing changes in the recent past, and there could be more changes down the line due to the occurrence of constant technological advancements. Let’s take a look at three of the top anticipated disruptors in the commercial real estate market.
1. Change In Distribution And Logistics
As digital shopping continues to rise exponentially, customers today expect faster execution of their orders. Many times, people demand same-day delivery. Some retail properties might look to evolve into dual functioning entities, which can receive consumers in person, while also managing and dispatching online orders and deliveries.
2. Shared And Co-Working Spaces
Today, there’s a new niche asset class that’s arisen, based on open concept and collaborative, member-focused working environments. Co-working spaces, or the pop-up office, which can be rented by the day or longer, has become increasingly popular. This is because technology now permits businesses to run offsite, for most of the time, and require only short periods in a formal office.
Businesses and professionals look for temporary workstations and offices that have the technological infrastructure required, but with little commitment. Shared working spaces meet these needs, and will continue to lead the way in new trends in the industry.
3. Shifting Demographics
“The current fluidity in the demographics of the commercial real estate market offers a challenge to investors and brokers to know what the next best investment will be,” says Breytenbach. There is great growth in urban development, thanks to more people moving to the cities. The longer lifespan of the Baby Boomer generation also contributes to this. These are only a few of the game changers that will be impacting the commercial real estate sector in the foreseeable future.
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