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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.

5 Emerging Real Estate Trends to Get Ready for in 2020

Real estate seems to be one of those investment classes that is always viable to investors, simply due to the versatility of the asset and the numerous ways you can build a positive ROI. Whether you are selling or leasing, or if you’re buying during an economic shift for an affordable price with the intention to wait until the property prices rise again, there are numerous ways you can capitalize on your real estate investment. For example, in 2019 in the US alone, median home prices went all the way up to $316,000, making it one of the best years for real estate agents and experienced investors.

Now that 2020 is well under way, it’s time to prepare for the new emerging trends and adjust your strategy for the new year, whether you are a buyer or a seller. Let’s take a look at some of the top trends you need to get ready for and act on sooner rather than later.

Home prices continue to rise

The growth trend for home prices in the US that has been persevering through 2018 and 2019 seems to the waning, and experts even predict that, while it will continue to rise, the average home price in 2020 will grow by only 2.8%. This means that investors and homebuyers, in general, will be able to take their time selecting the best properties for their needs, without fear of losing out on a good deal and having to overinvest. If you are a seller, you can expect fewer homebuyers to come your way simply because the elevated prices are squeezing them out of the market, however, that also means that affluent buyers will stay in the game.

On the other side, if you are a buyer, you will have to tend to some meticulous financial planning, forecasting, and property research. It’s important that you figure out the monthly mortgage payment according to your budget, and then make sure you stay within that amount. Search for properties that are low on the price list that you can fix up over time and as you build up your financial capabilities.

Real Estate Trends 2020 (1)

Accommodating seniors and Gen Z-ers

While the majority of homebuyers are still millennials, it’s important to note that other demographics are jumping into the fray and that real estate professionals need to optimize their offers and portfolios for other types of customers. Namely, 2020 will see a rise in senior buyers as well as Gen Z buyers. With millions of people entering their silver years and millions of young people entering their home-buying years, it’s important to adapt and stage every home according to the unique needs of these generations.

This is the only way to appeal to the modern buyer irrespective of age, as both generations will have very different lifestyle preferences and requirements. When you’re showing a home, you have to appeal to their current and future needs, which means thinking strategically about what seniors need vs what young people might be looking for. Remember to emphasize indoor safety for the senior buyers, and high-tech features for the tech-savvy Gen Z-ers.

The rise of display homes

Now that buyers are taking a more careful and calculated approach to property acquisition, it’s important to note that their decision-making process is evolving as a result. Whether they are looking to buy into a property development project that in its early stages, or if they are looking into plots of land to build their own homes, people are becoming very particular about the architects and builders they work with. In countries where property prices are sky-high, such as Australia, this has already become a major trend.

This is also why the popularity of luxury display homes in Sydney has skyrocketed in recent years, and why it will continue to rise in 2020, as Australian buyers want and need to examine the builder’s capabilities in real life rather than looking at online portfolios, pictures, and case studies. Display homes will become more popular in all high-priced regions of the world, so be sure to prepare for this trend whether you are an investor, an architect, or a buyer.

The neighborhood is not a deciding factor

Surprisingly, the neighborhood where the property resides doesn’t seem to be a deciding factor anymore. Yes, buyers will still research the neighborhood thoroughly, but they will be more inclined to give less-than-ideal neighborhoods a pass if the property is more affordable, or if there are other valuable features that the home can provide. For sellers, this is an opportunity to sell a home in a less popular neighborhood, and for buyers who are working with a limited budget, this is an opportunity to find a new home without breaking the bank.

Real Estate Trends 2020 (2)

Technology will fuel market research

Finally, all investors and real estate experts need to invest in technology in order to capitalize on industry trends and market insights this year, and in the years to come. With more and more valuable data flowing around the digital realm, it becomes impossible to conduct predictive analytics manually anymore, which is why you need to integrate AI-driven data analysis into your operation to organize all of that data into actionable reports and create accurate forecasts that will drive your business strategy forward.

Wrapping up

In 2020, many trends that have been persisting in the past will stay relevant, but some will bring significant change to the industry that all parties should be aware of. With these insights in mind, go ahead and optimize your processes for the new year and pave the road to success.

5 Home Building Trends for 2018 that Every Real Estate Needs to Know About

As we spend the last few days of 2017, real estate moguls and property managers can’t help but wonder what 2018 has in store. The home décor industry is also in an anticipatory mood for the coming year. 5 Home Building Trends for 2018 that Every Real Estate Needs to Know About For instance, home décor companies are brainstorming on new kitchen finishes and trendy paint colors for the New Year. The main reason why homeowners do a significant design remodel or engage in the construction of a custom home is to create a holistic personal space. This means that any home décor or remodeling firm should keep their consumers with the most current trend in the real estate industry. In this article, we will talk about the designs and decors in the home building industry that are going to revolutionize the real estate industry in the coming year of 2018.

Treatment and Finishes

Modern, sleek and aesthetic looks have taken over in the human life all thanks to technology. All these advancements have become a cliché, and now people want to get back to their original roots. Due to this fact, wood finishes will be a home décor incentive that no real estate firm should ignore in 2018. The home improvement décor may come in different forms including wooden plates, a rustic wooden lamp, a solid wooden table or exterior accents that are made from wood such as corbels, columns. The home designs of 2018 are likely to be all about wooden interior finishes and natural accents. Wood interiors compliment the desire by most homeowners to integrate with nature in today’s world where technology has almost made our lives artificial.

Iridescent Accents

While some owners plan on using earthly accessories to connect with the natural environment, there is a group of people who are willing to use the modern look of bright accents to embrace the future of home décor. Although lustrous accents give your home that aesthetic look that you are yearning for, it will cost you more than the available alternatives in the market. Most homeowners will prefer to start with a shiny tiled backlash or an iridescent pillow. This type of home décor is a mermaid-worthy look and is likely to gain traction in the future as homeowners are slowly embracing it.

More Open Spaces and Clean Lines

Even in traditional homes, spacious floors are becoming the trend going into the future. According to experts, the home construction industry is holistically becoming contemporary. Home builders are now focusing cleaner lines and the increased use of standing-seam roofs and Austin stone and doing away with turrets. Even the homeowners that chose to retain the traditional home exteriors have decided to go with open and modern concepts on their interiors. This always translated to tiny, wasted rooms and hallways. More usable space is still afforded by open floor designs to the dining areas and possibly to the living area. Designers have also brought the outdoors inside the home by the incorporation of more glass interior doors which are designed in such a way that they disappear after opening. As with any other system, efficiency is critical, and homeowners have realized that 100% of the floor space in their houses should be usable.

Geometric patterns

The day when geometric pattern designs would make a comeback in the home décor industry is finally here. These form of models can be seen in almost every part of the home area including in furniture and wallpapers. You can have the geometric pattern designs incorporated in your home using a wallpapered accent wall to give your house that new and fresh look. You can also make use of a new rug or some throw pillows to improve your aesthetic standing. If you are committed to having this new rend incorporated into your home, you can use a kitchen backsplash or a floor that is geometrically tiled. In 2018, this trend in home improvement will give a vintage and modern feel that anyone from any generation can appreciate.

Top Ways to Create The Ultimate Smart Home

Technology has allowed us to achieve things that were only a dream in the past. Smartphones have changed the way the world works. They have changed the way that every individual lives their life. Connected cars provide unparalleled convenience. They can tell you when your tires need air or your oil needs to be changed. They integrate media in a new and convenient way. Smart homes are the next step in this evolution. A smart house can truly improve quality of life. A smart house can let you control your home from anywhere. This can improve security, add convenience, and save money and energy. Creating a smart house is a fun and involved task. Here are five intelligent ways to make your home a smart home.

First Things First

Before we dive into automation tips we should discuss the best way to integrate the various services into your home. The early days of ‘smart houses’ required a centralized hub within the home. Homeowners control their entire home from this single control center. Current home automation practices are moving away from this. The hub, instead of being in the home, is now on your smartphone. Google has a dedicated hub app that enables you to manage your home network. Apple uses their Apple TV app to manage your smart home.

Now that we know how to manage a smart home, let’s discover all of the amazing things that you can do with an automated home.

Climate Control

The nest smart thermostat has set the standard in home climate control automation. Bestreviews.com calls it “…the best smart thermostat available right now”. The nest smart thermostat allows you to manage your home thermostat from anywhere in the world, as long as you have access to the internet. This system also ‘learns’ your preferences and is able to adjust accordingly. This system accomplishes everything that one could ask for; it saves money and offers unparalleled convenience.

Lighting Control

A correctly automated home relieves you of duties that generations of homeowners could not escape. Automated lights make worrying that you’ve left a light on a thing of the past. Your smart phone, enabled with a hub app, is the only tool you need to turn your lights off from anywhere. If you will be away for an extended time you can keep the lights on a schedule. This may deter any would be intruders.

Security

An automated home can improve your peace of mind when you are home or away. Smart locks and cameras offer security that was once only dreamt about. Integrated cameras allow you to monitor your home from anywhere. There is no need to be scared by a strange noise outside of your home. A camera system and smart phone allow you to see your home from different angles. Furthermore, motion detectors can warn you of silent threats. The Cocoon security system is an exciting and innovative newcomer into the home security arena. This system of cameras uses infrared and low-frequency sound technology to detect intruders. This sophisticated system actually identifies ‘normal’ sounds in a home and alerts you when there is an odd sound.

Entertainment

A smart home knows that its owners need their favorite music. Google and Amazon have released smart home devices that puts the world of entertainment at your fingertips.

Smart home technology is gaining popularity because it is becoming easier than ever. From a single smartphone a homeowner can manage their climate, ensure security, and even turn lights on and off. Companies such as Google, Cocoon, and Apple see the potential of this technology and how it will improve the public’s lives. It is hard to say what unbelievable innovation in waiting for us in the coming years but the potential is only limited by our imagination.