5 Commercial Real Estate Predictions for 2014
A recent article on CNBC talks about the future of commercial real estate in how we live, work and do business. While 2014 is set up to be a banner year in the commercial real estate industry, there are more predictions over the next 20 to 25 years than ever before as to the future of commercial property.
Economists and technology buffs predict five unique directions the commercial real estate will go over the next way five years.
- Many shopping malls may be extinct. Big-box retails and the Walmarts of the world will probably stay that way declining shopping malls into practically extinct, archaic buildings. As smaller markets lose shares and everyone goes to online retailing, you'll see more dead malls across the country and the world.
- Baby boomers could be behind the biggest construction boom. Within seven years, baby boomers will be turning around 75 which is when people usually begin moving into senior housing. This will create a huge demand demographically for senior and independent living housing creating a huge market in the commercial industry.
- Suburbs will be more like urban centers. As cities grow, suburbs will become even more important creating not only jobs and working environments but a play and live lifestyle. There will be mixed use projects, shops, smaller venues and outlet centers perfect for day-to-day necessities and amenities.
- Green buildings will become the Norm. "Efforts to meet environmental standards at this point tends to be costly but their own long-term imperative, and most everyone in the industry recognizes the." The gold standard in the US is the Green building Council's leadership in energy and environmental design (LEED) and there's no doubt that all buildings 25 years from now will be up to these standards.
- Brick and mortar businesses will go high-tech. Even though people want to look and touch they want instant gratification too. There may be an equivalent of a mini warehouse within the store see you can get exactly what you want at that moment. "Efficient distribution will be the key and the increasing importance of logistics and automation will impact warehouses across the country, many of which are obsolete even now, lacking up-to-date technology and adequate clearance height and often too remote to accommodate same day delivery". [Source]
It's true that most commercial real estate across the country is changing over the next 20 years and it will be exciting to see where were at.
Interested in commercial real estate in Minot? Call us today or get started searching for free on our website.