The core of any industry lies in its ability to satisfy needs. The commercial real estate industry is attempting to satisfy current needs, which is bringing a revolution to the real estate world. The following will highlight some of these changes and how it is affecting those in commercial real estate.
Multi-use Real Estate
One major difference in real estate worth noting is the rise of mixed use properties. There are a few examples to look at that make this a bit clearer; for one, malls want to go beyond what most people expect out of these retail centers. It is normal to see clothing stores inside a mall, and people expect a good food court in there, too, but people want more.
This is the reason developers are thinking outside the box. There are a few malls out there offering gyms, which may seem strange, but it is working. Other malls are placing grocery stores on the grounds to give people a reason to come in.
The multi-purpose retail space phenomena is going beyond malls. Commercial real estate experts are seeing that customers want their retail space to be more than just an office. Some are expecting a total live-work-play environment, offering a gym and even living quarters instead of just a simple office.
Culture Changing Retail
There are several cultural changes affecting the way commercial retail space is used. For example, parking used to be an important thing to consider but this is changing. This new culture is embracing the ride-sharing world so much so that some people are letting go of their cars and depending on ride-sharing.
Retailers now have to think about creating designated areas for pickups and drop-offs instead of creating more parking space. Technology is probably going to continue to change things for people dealing with parking spaces, especially with self-driving cars. People may end up sharing cars in the future without owning them at all.
Lease Terms are Changing
There is no doubt that the web has made things harder for regular brick and mortar retail spaces. This has created a shift in lease terms within the industry. Many landlords are starting to become more flexible with their terms, which is helping many small businesses.
For one, the pop-up store is rising within the retail space industry. These stores are there for just a moment and are usually connected to an online store. Landlords are also renting space to foreign companies trying their luck in this market for a short period of time.
These are just some of the changes affecting the real estate industry that people should pay attention to.