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As with any sector, commercial real estate is constantly evolving and changing. But, the pace of change in the past 18 months, in particular, has brought about some major shifts.
The greatest catalyst was, of course, the Covid-19 pandemic, which forced many businesses to shutter their shops completely while residents of commercial flats had no choice but to stay put at home. Between that and the changing priorities of consumers across the country, recent times have ushered in a new age of innovation for the commercial property sector.
As a result of the changes the past year and a half have brought about, ten key commercial property trends have emerged.
1. Reimagining purpose
Demand for certain types of commercial buildings has fallen as a result of the Covid-19 pandemic. While a sad state of affairs for the investors who have filed for bankruptcy, this brings with it unforeseen opportunities to reimagine irrelevant office spaces and forgotten shopping centres.
2. New homes
There is likely to be an increased emphasis on taking unused buildings and turning them into new homes. Whether they be shops and leisure centres that have fallen through the cracks or office spaces that are unnecessary in the age of working from home, we’re likely to see new apartment blocks crop up in unexpected places.
3. Adaptability
Just as the general population had to adjust to unprecedented circumstances, commercial property is also having to become more adaptable in the modern day. So, expect to see more homes that look good, feel cosy, and can function well as office spaces, too.
4. Sustainability
These days, every stage of a commercial property’s journey is focused on making it more sustainable, from the point of construction to renovation. This is great news both for the planet and the greener buildings that populate it, which are more likely to retain value far into the future.
5. Introducing automations
The digital transformation has hit all areas of business, and commercial real estate is no exception. With automations, the sector has the power to operate far more efficiently and offer more to buyers and sellers alike.
6. The rise of data
Data can help estate agents better find and appeal to target demographics and pitch sales that are sure to do well in the commercial property market. And, with more data becoming available all the time, there’s no telling what innovations this trend could usher in over the coming years.
7. Making property management easier
Industries of all types have had a digital upgrade, and it’s finally the turn of the commercial property sector. With digital property management tools, estate agents can better manage more properties and coordinate across larger pools of clients.
8. Artificial intelligence
With artificial intelligence, estate agents can offer buyers and sellers more, such as intuitive search tools, more accurate property valuations, and faster transactions.
9. Putting the consumer first
Consumers expect their experiences to be personalized. While this is, admittedly, an easier job in industries when you can slap a name on a product and call it a day, there are ways of tailoring client experience in the real estate sector, too, such as using data to design dream offers.
10. The price is right
Commercial real estate prices declined sharply during the worst months of the coronavirus crisis. Thankfully, though, they are on their way to recovery, with experts predicting that they will be back to pre-pandemic levels later this year.
The commercial real estate sector has had more than its fair share of ups and downs in recent months. But, as the world returns to some semblance of normality and things continue to level out, the industry looks set to emerge refreshed and rejuvenated, with prices back to where they were and exciting new trends to stay up-to-date with.
From client-centric technological advancements to renewed focuses on sustainability, adaptability, and reinvention, there’s a lot to be excited about in this ever-changing sector.