Although tech adoption has steadily increased in the world of commercial real estate, the industry is relatively old school and lags compared to its other counterparts. But the gap won’t stay wide for long as the industry age gap is reducing since more and more Millennials and Generation Z are making waves throughout the industry.
Many segments of the commercial real estate world need the younger generation. According to researches and case studies, the average age of a commercial realtor is 60 years old. That dynamic is pushing companies across the industry to hire younger workers. When it comes to work/life balance and commercial space needs, America’s younger generations have different expectations than their predecessors.
The ongoing demand for remote working facilities to market changes impacting future space needs, the Millennials and the Gen Z are making the industry evolve and adapt.
1. Remote work:
More than any previous generations, the new-age millennials are pushing to work remotely. Even surveys say that majority of the millennials will prefer to work remotely and want it to become an acceptable practice in their workplace. Also, millennials believe working remotely offers more flexibility and boosts productivity.
Given that millennials are the largest workforce and are taking up higher-level positions, it is only a matter of time, it becomes a permanent feature across most industries. This trend promises to change the corporate culture across the commercial real estate industry. This could drastically reshape demand across office markets. This is because, as working remotely becomes more mainstream, companies will need less space per employee. That could trigger a drop in demand for traditional workspace as companies will begin to reassess their space needs.
Here’s an opportunity for some people who can manage to get ahead of it. Instead of depending on outdated strategies, you can try integrating creative solutions like flexible workspaces when thinking about how this trend will impact your market.
2. Technological fluency:
Millennials are the most technologically forward people in history. But that too is changing as more Gen Zs enter adulthood and join the workforce. As the number of millennials and Gen Z enter the force, the commercial real estate industry will feel the pressure to increase their technological adoption as employee tech increases. Generational changes will cause the industry to be more tech-dependent. Companies will have to find a balance between young workers and older workers. However, the right technology being employed at a workspace can make a significant difference. And sloppy tech integration widens the technological dive and makes generational challenges worse. Therefore, commercial real estate properties should strike a balance between being technologically advanced while being easy for the older generation to understand and operate.
3. Mixed-use facilities:
Millennials place an extremely high value on ease and convenience. They don’t want to drive to five different stores to get their shopping done. They prefer to walk to a mixed-use complex that has a live-work-play lifestyle. They have made retail spots a destination place rather than someplace to shop. Besides saving gas and time, mixed-use complexes provide them with a central location to shop, eat, and hang with their friends. It gives a sense of community that attracts millennial generation. While mixed-use facilities started to get traction in the mid-2000s, Millennials are making mixed-use properties in high demand.
So there you have it, millennials are paving the way to new age commercial real estate. If you are one from the millennial generation and would like to venture into the world of profitable real estate investment, speak with us at Perfect Real Estate Investments. We can help you make the most out of your commercial real estate investments.