Trends that Affect Commercial Real Estate in the New Decade
The way that commerce is changing is shaping emerging trends in commercial real estate’s use and construction. Online shopping, changes in real estate marketing, and changes in customer experiences will influence commercial sales and leases over the course of the next decade.
Imagery is Becoming as Important as Data in Getting Your Listings Noticed
The way that people look at all prospective transactions is changing dramatically. Across all industries, every kind of consumer and investor wants to see marketing materials that contain strong visual representations. A property’s location, zoning information and building specifications are no longer sufficient to give prospective buyers or lessors a good sense of what it’s like to be in a particular space. As the shopper or client experience becomes increasingly important to commercial real estate operators, it’s vital to impart a striking and positive depiction of a property’s aesthetic and visual appeal.
Buyers will spend a significant portion of the time that they spend reviewing a listing just looking at the photographs, so it’s of the utmost importance that your listings contain more than one or two. Photographs need to be professional, high quality and not grainy. They should be thoughtfully selected to highlight a property’s features. Pay close attention to lighting and staging. Use angles that will optimize how a property’s interior space is perceived.
Commercial Space Needs to Satisfy New and Unique Customer Experiences
Businesses that operate in commercial space find themselves needing to go to greater lengths to enhance their customer’s experience in order to lure them away from online shopping. They are striving to create a unique experience rather than just a location for a retail transaction. By setting the bar higher for aesthetics and design, industry demand will affect commercial real estate values. To begin with, purchasers will expect more in terms of quality and materials. Meanwhile, purchases may find that they’ll need to be more flexible in allowing tenants to make changes.
Less New Construction Will Be Available
A marked increase in new construction within the past five years coupled with a decline of non-adaptive brick and mortar retail locations is likely to result in a drop in the construction of new retail buildings. Resultantly, the consumer retail construction industry is more likely to be focused on rehabilitation and renovation of existing structures. This is an opportunity for investors to look at repurposing space to their unique needs rather than pay for costly new construction.