The Future of Commercial Real Estate
Commercial real estate is an ever-changing industry. There are many factors that affect this field, such as the rise of technology and the increasing number of millennials in the workplace. According to CNBC, there will be some major transformations in commercial real estate in the coming years, including fewer brick-and-mortar retailers, more "smart buildings," and fewer jobs requiring office space. None of these predictions are bad news for the commercial real estate field, however; it only means that it's more important than ever to stay up-to-date with the latest news and predictions. Take a look at a few changes that might be occurring in commercial real estate during the coming years so you can stay ahead of the curve.
How Commercial Real Estate is Changing
Developing Technology
As technology becomes more and more advanced, it becomes more present in the workplace. According to McKinsey & Company, technology can now automate 45% of the activities that people are being paid to perform right now - and that number is increasing steadily. This does not mean that robots are stealing our jobs; it only means the workplace is being redefined and new roles are being created. In fact, many children in school currently will work in a job that doesn't even exist yet! This shift is predicted to result in economic growth, so commercial real estate isn't expected to suffer - as long as commercial realtors are dedicated to learning and fulfilling the changing needs of their clients.
More Remote Jobs
With the rise of technology comes the rise of remote jobs as well. A vast amount of work can now be completed from just about anywhere, which means that fewer companies and occupations require office space. Location is less of an issue as well, as most employees can connect with their co-workers without needing to be on the premises. In order to keep pace with this dramatic change, commercial realtors will need to transition their focus to workplaces that can be rented for shorter time periods, such as by the day, week, or month, in order to accommodate the flexible schedules of tenants.
Less Demand for Retail Space
Retail space is becoming less of a necessity due to the significant increase in online ordering. Brick-and-mortar locations have seen a drastic drop in sales, causing many companies like Toys 'R' Us and Radio Shack to file for bankruptcy. This move from physical to online shopping means less need for retail space and more need for warehouses, whether it means building new ones or updating old ones. This is another important development that commercial realtors will need to be aware of as they continue to advance their careers.
Contact SKCR for All Your Commercial Real Estate Needs
Our team at SK Commercial Realty is dedicated to educating ourselves on the latest industry news and trends in order to serve our clients to our full abilities. If you'd like to hear more about our many services, give us a call today. We are always ready to help!