As with many markets, we expect to see plenty of changes to the future of commercial real estate within the next decade. We are rapidly making our way toward the year 2021, which leaves many potential buyers wondering what the future holds. Buyers, owners and residents have begun outlining previously unexpected demands regarding their occupancies.
Ultimately, these new expectations are a byproduct of an evolving society that will shape commercial real estate trends in the year 2021 and onward. Below, we’ve outlined some of what we think you can expect in the years to come.
Technology Will Determine the Next Commercial Real Estate Needs
The technology industry has been growing for years, as is evidenced by the smartphones, tablets and computers we carry around daily. Our technology is continually developing, changing the way we view the world and what we expect from it. As technology evolves, we can expect this to cause the commercial real estate market to change in multiple ways, such as:
- Supply chain improvement demanding efficient utilization of commercial spaces
- Additional availability of retail and commercial spaces due to streamlined processes
- Increasing demands for high-quality spaces in prime locations
These are just a few of the future real estate changes we can anticipate as technology continues to develop our society. With this growth, we can expect to see improved regional development analysis, which will cause further changes to our predictions for the real estate market.
Commercial customers will seek property arrangements that provide them with room for growth and that actively attract potential clients to their locations.
Medical Practices Will Shape Real Estate Market Trends
Now more than ever, accessible and affordable health care solutions are in demand. The need for these spaces profoundly impacts our predictions for the future of real estate given the necessary privacy requirements these types of establishments require.
Additionally, these facilities need to be in easily accessible locations and should be easy to find so that individuals requiring medical care can quickly receive it.
Plus, a layout that accommodates waiting areas, office areas, reception and friendliness for those with disabilities is essential for medical facilities. Therefore, the medical industry has adapted to the trends by inhabiting retail spaces. They are easy to access and convenient for patients and provide plenty of parking. The layout of many of these spaces is already ideal for medical purposes, ultimately making it easy for individuals to take care of their medical needs while running their daily errands.
Many commercial locations that are readily available for purchase require only limited adjustments to be suitable for medical facilities. There are dozens of potential uses in these areas, including doctors’ offices, urgent care centers, vision and glasses centers and dental services. The overall layouts and designs of these facilities are adaptable and affordable, and a great choice due to the cost and location.
Construction Costs Shape Real Estate Market Trends
In the last decade, the cost of new construction has risen relatively dramatically. There are a variety of reasons this took place. To begin with, the quality and availability of land and construction materials have increased in recent years. Additionally, the availability of skilled construction labor has caused these services to be in demand, leading to higher prices for services.
The cost of land in residential and commercial areas has also been on the rise in the last five years. Purchasing land and obtaining building permits can cost builders thousands of dollars. New buildings must meet local construction codes, which can vary based on the location of the structure. Moreover, owners who want to build new commercial sites in prime real estate areas often pay thousands of dollars to purchase the land in the area, making it an unworthy investment.
This leads to many potential tenants requesting improvements to locations readily available to meet their real estate needs. Real estate agents should expect to see demands for improvements increase as buyers and renters will begin “settling” for readily available real estate in their desired areas.
Fast Food Industries Require Reworking the Commercial Real Estate Market
The development of popular food delivery platforms has caused many fast food chains to require more real estate. These companies need large areas for accessible cold storage. Other companies began looking for centralized real estate, allowing them to offer delivery to a larger radius of local customers.
These requirements may seem insignificant, but they broadly impact the value of certain types of real estate and will continue to do so. Newer, centrally located real estate designs feature the ability to comfortably accommodate these needs as society leans on the technology sector to make fast food accessible to a broader audience collectively.
Making these types of changes will shape the future of real estate by location. We also expect it to change the way commercial real estate presents itself in specific areas. Ideal locations for fast food will see an increase in food-centric commercial real estate to provide accommodations for the equipment and technology essential to daily operations.
What Does the Future Hold?
Ultimately, society’s expectations of commercial real estate have changed within the last decade, and we predict these changes to impact the way the real estate market functions. However, it’s important to keep in mind that society is perpetually growing and changing. The changes that have taken place now will likely be vastly different than the changes we can expect in yet another decade.
Keeping up with the changes can be difficult. Technology is rapidly growing, advancing and driving consumerism, which in turn alters our expectations of real estate. If you want more information about how the commercial real estate world has been impacted by technological advancements, we encourage you to reach out to LCI Realty. Our team is ready to provide you with details about the growth and development of the real estate world and to guide you in making the best buying and selling decisions.