Workplace trends, saturated competitive landscape, urbanization, and globalization have been molding the needs, wants, and preferences of the tenants. According to a 2019 research survey carried out by Deloitte, known as the 2020 Commercial Real Estate Outlook, digitalization is what CRE companies need to thrive in the future.
The results have revealed that organizations in the commercial real estate (CRE) industry need to meet the requirements of modern tenants and boost user experience (UX) with the help of Artificial Intelligence (AI) and other emerging technologies.
The survey was drawn by 750 commercial real estate executives based in 10 different countries to analyze how analytics and advanced tech were helping leading real estate businesses to thrive.
In the light of Deloitte’s findings, we’ll explore in this blog the future trends that CRE organizations need to adopt.
Location, Location, and Location: An Obsolete Mantra
Ever since the inception of the CRE industry, many businesses have been following the typical mantra: location, location, and location. In a 2016 research report, Deloitte forecasted that location, information, and analytics would be the modern mantra for the ever-evolving tenants. However, the commercial real estate market has now advanced even further, and organizations who want to lead the industry should follow the modern mantra—location, experience, and analytics—according to Deloitte’s 2020 CRE outlook.
Accelerate the Adoption of Smart Buildings
As per 25% of the CRE executives, smart buildings will be all the rage in the next five years. 61% of respondents said that smart properties would have an equal or more effect on the leasing decisions for tenants compared to the location. In addition to this, approximately 68% thought that tenants would be willing to pay a premium of at least six to ten percent while purchasing a smart building.
Companies don’t have to construct new smart buildings from scratch. They can incorporate the Internet of Things (IoT) technology in their already existing and under-progress projects in stages over a period. This would reduce their risk of losing all investments in one go.
CRE organizations may begin by investing in smart and IoT-enabled parking, energy systems, building’s security, and predictive maintenance—the most sought after components by tenants.
Sync Real Estate With Their Mobile Phones
Research by the Sensor Tower revealed that the global market for mobile applications would surge by 17 percent and reach an estimated value of US$156 billion, by the year 2023. Businesses in the crowded CRE industry can have the edge over their competitors by offering tenants convenient, user-friendly, and intuitive mobile applications based on the preferences, attitudes, and needs of the tenants. With the help of data analytics, CRE executive can offer unique and personalize mobile experiences to the tenants. Deloitte backs the finding with an already existing mobile app “The Dock 72” for a 16-story building named “Dock 72” in Brooklyn, NY.
If you are planning to sell your industrial property, office, retail outlet, or other commercial real estate in Sterling Heights, Warren, Clinton Township, Shelby Township, or Chesterfield Township, please get in touch with Macomb Commercial Real Estate before making any move. Connect with us or call Justin today at 586-227-9515 to request a free consultation!
