The real estate market is estimated to have an annual value of at least $10 trillion. With that much money on the table, you must stay ahead of the curve to create what your customers want.
Whether you’re an established developer for commercial real estate development, or you want to get into the industry, it’s important to know where it’s at.
Taking a look at information trends allows you to keep on top of the latest, giving you a competitive edge. So without further ado, here’s our guide to commercial real estate trends and what they entail.
1. The Rise of the Millennial Generation and Their Unique Preferences and Needs
The Millennial Generation is the largest and most diverse in American history, and their unique preferences and needs are trends shaping commercial real estate development. Born between 1981 and 1996, Millennials are now adults making their own decisions about where to live, work, shop, and play. And, they are doing so in a very different way than any other generation before them.
For example, Millennials are much more likely to use technology to research and purchase a home or rent an apartment. They are also more likely to prefer urban living and want to be close to amenities and public transportation.
What all of this means for commercial real estate developers like is that they need to be aware of the changing preferences and needs of this generation and adjust their plans and offerings accordingly. Those who don’t will likely find themselves struggling to attract and retain tenants and customers.
2. Increasing Awareness of the Importance of Sustainability and Energy Efficiency
There is an increasing awareness of the importance of sustainability and energy efficiency when it comes to commercial real estate development. This is shaping the way developers like The Talons Group approach projects, as they are looking for ways to reduce the environmental impact of their buildings. This includes using energy-efficient materials and construction methods, as well as incorporating green space into their construction growth plans.
In addition, developers are working to create buildings that are adaptable to changing weather patterns and capable of withstanding extreme weather events. As the world becomes more aware of the need to protect the environment, commercial real estate development will continue to evolve to meet these challenges.
3. Changing Demographics and the Resulting Shifting Patterns of Urbanization
As the world’s population continues to grow and urbanize, the demand for commercial real estate development will continue to rise. However, the nature of that demand will be shaped by changing demographics and resulting patterns of urbanization.
For example, the growing popularity of “live-work-play” neighborhoods is a trend that is being driven by young professionals and empty-nesters who are seeking more vibrant and convenient urban lifestyles. This is leading to the development of more mixed-use buildings that combine residential, office, and retail space in dense, pedestrian-friendly environments.
Another trend that is being shaped by changing demographics is the increasing demand for “senior-friendly” environments that offer amenities and services that cater to the needs of an aging population. This includes things like easy access to transportation, healthcare, and recreation.
Impact of the Trends in Commercial Real Estate Development
Each of these trends is having a profound impact on the way commercial real estate development is carried out, and they are all likely to continue to shape the landscape in the years to come. Developers who can anticipate and respond to these trends will be well-positioned to succeed in the ever-changing world of commercial real estate.
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