What The Future Brings: The Impact of Technology on Commercial Real Estate

Technological, social, and economic challenges of the future will change the way people live, work, and shop. These changes can significantly impact today’s climate, not just in residential, but in the commercial real estate sector as well and its portion of the value chain. The ultimate question is who will profit and who will lose money in the future world of commercial real estate. 

What can we expect?

The present evolution of technologies towards digitization and automation will cause massive changes within the industry. The job profiles that exist today will change, along with the clients’ demands on how the job is executed. There will be an increase of redundant low-skilled, blue-collar workers while, white-collar jobs will be more driven by data, performed remotely, which will impact the need for office spaces, as well as functional office design and furnishings. These developments promise to reshape the commercial real estate environment. 


The future is mobile

With autonomous cars just around the corner, we can expect major changes to the ways cities are built and developed. Property managers will have to evaluate how they use space. The decreased need for parking spaces both on and off the street will free up large areas for development. In some cities, landlords are converting parking space into commercial real estate, taking advantage of the premium location and street-level access. The new space requirements will include re-configured parking solutions for driverless cars and warehouses for automated loading machines. 

Tenant health and wellness

As global environmental concerns are gaining momentum, people are more concerned about the impact of commercial spaces on their health and wellness. A global 2016 survey by Deloitte that targeted the Millennial population showed that young professionals consider employee well-being as one of the most important qualities of a workplace. To meet these demands, companies are considering how to improve the health and well-being of their commercial tenants and residents. The overall prediction is that commercial properties that don’t meet the needs of modern tenants won’t see modern tenants. The survey analysis recommends that real estate companies should include tenants in decision-making, so they can better understand design elements that cater to health and wellness. 

Rise of smart energy products

With the UN predictions that the world population will reach 9.7 billion in 2050, over 66% will live and work in cities. As a consequence, commercial places will have to become increasingly urbanized with unprecedented integration of smart technologies, drones, autonomous vehicles, and automated services. The modern urban architecture will rely heavily on smart energy products like industrial lighting solutions shown here, as well as on data and technology to make life more comfortable. As a result, the cost of both commercial and residential real estate is expected to rise in those districts.

3D printing

We won’t have to wait long before builders are able to print entire floors with immense time savings. In China and Dubai, there are already low-rise commercial properties being developed with 3D printing, and the builders are reporting construction time reduced by 70% and cost by 80%. With its huge implications for construction, 3D printing is both a threat to traditional warehousing, as less space will be required, but also an opportunity for retailers to respond on-demand. 

Event-driven shopping

The rapid increase of online shopping will further reduce demand for retail real estate assets, with more demand for just-in-time logistics. Amazon is already experimenting with drone delivery service, claiming it’s much safer and faster than going through couriers or postal service. This way, logistics centers could be located at the periphery, freeing more space in the city center. Upper-end high street miles will still exist, primarily through the leisure PR function, but smaller retail businesses in decentralized regions will suffer the heaviest blow. To meet the demands of new customers and build interest, shopping malls will need to resort to more event-driven concepts that emphasize on experience rather than shopping. 


Fading relevance of real estate brokers

As individual market players in the real estate arena, real estate brokers will become increasingly redundant due to market transparency policies and automated rental negotiations between owners and lessees. Real estate transactions will be based on technologies like blockchain, which eliminates the need for the middle-man. On the other hand, the government won’t miss an opportunity to benefit from new developments through new tax models, such as a tax for automation. Part of this income will be much needed for mitigating social problems due to increased unemployment, which is a result of automated processes. Although the future banks will certainly take advantage of the high degree of debt financing for real estate projects, crowdfunding platforms will take their share as strong competitors to traditional banking. 

The word ‘smart’ has changed slightly in meaning over the last decade, as new technologies granted us even more features that help us manage our lives. The increasing automation of running the business will bring profound changes in the commercial real estate sector, that go far beyond smart buildings and shared workspaces.

Why You Need to Install a Pool When You Build Your Home

One of the questions most homeowners struggle with is deciding on when to install a pool. Some prefer constructing a pool when building a home, while others would rather wait until after they move in to get a pool. Whether you’re looking for a pool for relaxation or you’d rather get a place for your kids to spend their summer, a pool can benefit your life.

If you’re still stuck on when to install a pool, here are some reasons why you need to install a pool when you build your home.

Reduced Financing Costs
Most homeowners struggle to know how to finance a new pool. You may not have $30,000 lying around to finance a pool. However, you can take advantage of inground pool financing options available. You can also include a new pool in your home equity loan to save the trouble of incurring more debt. This allows your loved ones to enjoy a pool of your dreams at a reasonable cost.

Get in When Everything is finished
Another great reason to have your swimming pool installed when you build your home is knowing that your pool will be ready when you decide to move in. You don’t have to deal with the hassle of always going outside to ensure your kids or pets are not on the construction site. This gives you and your family peace of mind. Furthermore, you get to avoid the noise, dirt, and dust that comes with building projects.

Save Time
Constructing a pool before saves you between four and twelve weeks based on the project’s complexity. You can use this time to unwind in your new pool.

Cut Down Costs

Ever wondered why electricians are hired to do the wiring during the framing process? It’s because there are no walls or ceilings to complicate the process. This is the same case when installing a pool. An electrician can set things up before time to ensure that the process goes smoothly. A plumber also ensures that the home’s swimming pool ready. Over time, you get to save on electrician and plumbing costs.

Protect the Driveways and Sidewalks

You don’t want to be in a situation where your driveway cracks as a result of a crane putting a fiberglass pool in the hole or a truck carrying cement to the swimming pool deck. All this can be avoided by having your pool installed before the driveway and sidewalk are constructed.

Protect Your Landscape
Your home is considered a construction site. Heavy machinery and trucks will come in and out during the day. Installing a pool will require a similar approach. During this time, plants and shrubs near the pool may take a beating, for this reason, it’s best to have the pool installed before your yard is spruced up. You don’t want to end up damaging your landscape in the name of installing a new pool.

A Reason to Stay Home
As a parent, you want your children to have the best. Having your children swim in a public pool may not always be ideal. You can have the pool installed as your home is being constructed to ensure that your kids have a reason to stay at home. Furthermore, you’ll save costs that would have been spent at public pools.

Add Value to Your Home
A swimming pool adds a value of about 5% on a home. This is according to the National Association of Realtors. This means that in case you decide to sell your home, you won’t have to worry about getting extra amenities to get your home to sell fast.

Getting a pool installed as you build your home could help you save costs and add value to your home. Consult a professional swimming pool builder to decide on which type of pool is right for your backyard.

What I Learned Building My First House

Many people dream of building a great home. With the strong housing market, now is a great time to invest in a new home. However, building a home is more complicated than many people realize. There are many variables to consider when building a home. Working with an experienced builder is one of the most important things that anyone can concentrate on. There are many people who are excited about the possibilities in their new home. Here are some things to remember when building a home.   Building a Home is Hard Work Building a home takes a lot of careful planning. Some people wrongly assume that building a home is an easy process. However, homeowners must be willing to work hard in order to finish on time. One of the biggest reasons that homes do not finish on time or on a budget is because the owners are not organized. Before starting the building process, you need to have plans for each part of your home. Your home builder should be able to walk you through the expected cost of the home. It is up to you to get your part done in order to complete the home within the allotted time schedule.   Get a Home Warranty A home warranty is one of the best investments that anyone can make. A home warranty will protect the homeowner in the event of something going wrong. Some people do not want to pay money for a home warranty. However, with just one issue coming up in your home, the home warranty will pay for itself. There are many people who think that the home warranty cost is too high. There are cheaper options available in the market if you spend enough time looking around. However, compared to the cost of repairing a home, a home warranty is a great deal. It is risky to build a new home and not have some sort of home warranty. In fact, many areas of the country require a warranty for people who build a new home. Before you move in, getting a home warranty that covers your needs is vital.   There Will be Delays Building a home is a long and difficult process. During this process, there are going to be times when the project gets delayed. These delays can result from things like weather or simply poor planning. This is one of the reasons that homeowners should put some buffer into their time and financial budget for a new home. Working with a great builder is one way to minimize delays. Experienced builders know how to plan for things that they cannot control. Looking at online reviews is one of the best ways to make sure that you are choosing the right builder for your needs.   Staying on Budget is Difficult Staying on a budget during the building process can be difficult. When building a home, every area of the home can be customized to fit the needs of the homeowner. There are many people who end up spending thousands of dollars upgrading their new home. This is a major financial issue because getting a new loan is a difficult process. In order to prevent these issues from occurring, you need to make sure to stay on budget with each part of the home. When you get approval for a home loan, getting a little extra financing is always a good idea. This will give you some room to splurge on various areas of your home. Some people end up taking a second loan to finish their home. This can result in financial disaster if the housing market crashes.