Over the past few years, we have changed the way we live and survive in the technological age. It might appear that commercial properties are overlooked when technological changes take place, but in truth, there is more to it than meets the eye.
The commercial property market has already undergone great changes in the past and there could be even more huge changes in the pipeline due to technological advancements.
Here are five potential disruptors that may change the commercial property market forever:
Disruptor #1 – Change to the traditional agent model
Technological advancements have provided universal access and transparency of data of all kinds, especially in the commercial real estate field.
This way, tenants and property owners are brought together through cloud computing, smartphone, and social media, providing a convenient way of sharing information. Thereby allowing consumers to make more informed decisions.
Agents and brokers have thus started investing in updated digital solutions in order to provide their clients with a better service!
Who knows, it may even become necessary for agents and brokers to diversify their own fields and expand their services by investing in data and technology.
Disruptor #2 — Shifting demographics
Demographics are constantly changing and this makes it difficult for investors and brokers to make sound investments in the commercial real estate market.
There is an exponential growth in urban areas as more and more people are moving to cities. Couple this with lifestyle changes that are being made by the baby-boomers and already you have a huge shift in the real estate industry!
Technology may be considered a huge disruptor, but in this case, it is proving to be an asset to the industry!
It’s providing efficient systems to give individuals up-to-date information on trends and how the overall system is changing.
Disruptor #3 — Co-working or shared workspace
Co-working spaces or pop-up office locations are becoming increasingly popular as technology is evolving businesses to run off-site most of the time which will require shorter amounts of time in a formal office setting.
Micro-companies and startups often require configurable spaces and flexible leases in order for them to grow into something bigger. Shared spaces include all the necessities of a normal office space like WiFi, open plan offices, suites, meeting, and boardrooms.
The same equipment will also be available like copy machines, fax machines, computers – even kitchens for tea and coffee breaks!
The increase in communication technology has made it possible for business owners to conduct business from a remote location which enables them to save time and money.
Disruptor #4 — Change and distribution in logistics
Online shopping has been on the increase which means that customers expect faster execution of orders and in some cases even same-day delivery. Some retail properties may look to evolve into dual functioning entities which receive consumers in person, as well as managing their orders and deliveries.
In some cases, this may require a smaller visible retail presence, but an increase in local warehousing in order to speed up the delivery process. Owners of industrial spaces that are suitable may even benefit as they redesign these properties to facilitate this new market.
Disruptor #5 — Crowdfunding
This concept allows people with small amounts to invest to pool their resources together with other similar individuals in order to collectively acquire a commercial property.
In the past, these investors had to have surety for a bank loan in order to invest, but crowdfunding has made it possible for smaller investors to get a foot in the property door. This factor on its own could change the dynamics of commercial and real estate businesses in the future. Needless to say that numerous crowdfunding platforms have already been established!
These next few years will be very interesting in the commercial property space as technological advancement will drastically change how this well-established market operates!
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