Emerging Trends in Commercial Real Estate
Over the last decade we’ve seen the residential real estate market change drastically due to new advances in technology and cultural changes– but what about commercial real estate? Commercial real estate agents and investors have been riding a wave of trends spanning from energy conservation to communal workspaces. Curious about the biggest trends and advances to hit the commercial real estate market this year? Buckle up.
Solar-Powered Property
We live in an age where being environmentally conscious is a big deal, especially when it comes to real estate. More and more office buildings and shopping centers all over the country are hopping onto the eco-friendly train by installing solar panels and water conservation systems. One of the biggest reasons commercial real estate investors seek self-sustainable property is to take advantage of the solar investment tax credit. This tax lets investors in solar energy conservation claim up to 30% of their solar installation costs that they earn back in tax returns. Corporations like Target, Ikea and other big-name department stores are all installing solar energy systems in their buildings and parking lots.
In addition to the more traditional solar panels, a new solar technology is becoming more and more popular in public buildings, called BIVPs (building integrated photovoltaic cells). Along with generating energy out of sunlight, this alternative solar energy system provides effective insulation, shading and sunlight when it’s needed most. There’s no doubt about it; solar energy conservation is the way of the future.
Smart Buildings
Smart technology is rapidly taking over almost every aspect of our lives– why should commercial real estate be any different? Commercial building management consists of temperature control, water quality and electricity. Today’s smart buildings are using automated systems to control all aspects of a commercial building, making building management much simpler. One of the greatest benefits of smart technology in commercial buildings is its ability to customize management and personalize the environment.
This automated building management is especially important when it comes to office buildings. Smart buildings often use sensors to detect when rooms are vacant and can shut off unnecessary lighting. And even better, smart technology can help control the thermostat, allowing employees to easily adjust the temperature instead of freezing from a fixed thermostat.
Demand for Modern Office Space
In addition to smart technology, office buildings are becoming more and more modern, giving in to trends that encourage a more employee-friendly work space. Shared workspaces are becoming more and more popular, as tech start-ups and freelance workers seek to collaborate with peers and create a more collective environment. Many of these shared workspaces don’t require a long-term commitment, meaning they can lease from year-to year and even month to month.
These collaborative workspaces appeal toward Millennials and appease their need to be social and have easy access to the office. That explains why more and more residential buildings are popping up around office buildings and shopping centers. Commercial investors are no longer interested in merely buying property; but are more so seeking to invest in an innovative and inspiring community and experience.
Increased Mobility
As is the case in many other industries, there is a huge demand for mobile accessibility to those involved in commercial real estate. Every year, more and more residential real estate agents and investors conduct much of their business digitally, whether it be through emails and easy-to-use mobile apps. However, in the last few years, commercial real estate wasn’t quite as advanced as residential real estate when it came to mobile technology. More recently, commercial real estate technology has begun advancing and investors are finally seeing a handful of helpful commercial real estate apps. Being able to conduct business anywhere at any time is sure to change the commercial real estate game.
—
Interested in real estate trends? Find out about trends going on in the housing market.