From design trends to stock market trends, every industry is subject to a range of influences that also create certain trends. Commercial real estate is no exception. Here are the top three commercial real estate trends to watch for in 2019.
A Greater Boost from Technology
There is no doubt that technology is having a strong impact on the world of commercial real estate. From prospecting to blockchain-driven smart contracts, technology is helping investors in every step of the process. The challenge facing investors, however, is determining just how much faith to put into this emerging tech and how much to stick with what is tried and true.
A Resurgence in Brick-and-Mortar Retail Spaces
Thanks to the rise in online shopping, commercial investors have become somewhat leery of investments in retail spaces. There are two trends, however, that give credence to the idea that brick-and-mortar retail is far from dead. The first is the move of a number of previously online-only retailers into brick-and-mortar stores. The second is car dealers ranging from Tesla to Audi moving from large dealerships to smaller retail storefronts and shopping malls.
Millennial Transformation of Suburban Planning
When millennials were predominantly in their 20’s, they craved a more urban environment just like their parents and grandparents did in the full blossom of their youth. As they move into their 30’s and start bearing offspring of their own, they are migrating en masse to the suburbs. Just like their parents and grandparents did before them.
Unlike their parents and grandparents, however, millennials want to take all of the conveniences of the city with them. Rather than moving into sprawling planned communities with a grocery store a quick drive away, millennials prefer smaller, planned communities with all of the conveniences of city life just a quick walk away. This means more opportunities for offices, retail, and restaurants.