In our time as a real estate software company, we have learned one thing above all: to be informed about new trends and to stay up to date.
The commercial real estate market continues to be transformed by global market shifts, technological advances, and changing social norms. This landscape could also be impacted by the U.S. federal elections and inflation rates in 2024. To navigate the market, it’s important to understand and adapt to these trends.
Continued Remote Working and WFH
The pandemic has undoubtedly changed the office landscape and, with it, commercial real estate. Flexible working conditions and remote working (or work from home, WFH) are now more commonplace than ever before. The demand for flexible offices has increased as companies adopt hybrid working models.
Commercial real estate managers need to adapt to this trend by offering flexible leases and customized solutions for hybrid working models. It will be crucial to invest in the technological infrastructure that supports remote working and create adaptable offices that prioritize innovation and collaboration.
Our experience has shown us that we can grow business remotely. Being able to communicate with real estate investors and business professionals around the country (and the world to a degree) has allowed our company to reach new heights. Working from home more allows our staff to balance their schedule with work and personal a little more than before. This builds trust, empowers our staff, as well as creates a more willing investment to work a bit later or longer at times. Flexibility is key for the future.
Sustainable Energy Consciousness
The real estate industry is a major contributor to climate change, accounting for 39% of global emissions. Investors are increasingly looking to reduce their carbon footprint and decarbonize their portfolios. Sustainability is an important aspect. Even tenants are looking for environmentally friendly properties that have lower operating costs and a higher property value. This could indicate that environmentally friendly real estate will be in demand.
Due to this growing demand, developers are increasingly focusing on energy efficiency and a lower carbon footprint. Newer developments, smarter cities, as well as solar farms are only a few of the opportunities commercial professionals can take advantage of.
Commercial real estate leaders should prioritize green practices because sustainability is a priority for both investors and tenants. This includes energy-efficient construction, renewable energy sources, and green building certifications, which can increase property value and attract environmentally conscious tenants.
The Expansion Of Technology & Use Of AI
It’s no surprise that commercial real estate operations could be impacted by the integration of technology as Chat GPT and AI become common terms by 2023. There have never been so many opportunities for commercial real estate to improve tenant experience and optimize operations.
The decision to adopt smart building technologies can be made by real estate executives who value easy-to-use interfaces and seamless integration of existing systems. AI-driven analytics can help optimize space utilization, improve building efficiency, and provide valuable insights for operational decisions. Keeping up to date with new technologies and embracing innovation could be the key to gaining a competitive advantage in the market.
Evolving Market Dynamics
In 2024, the market dynamics driving real estate demand will continue to change, heavily influenced by the new post-pandemic realities. Tenant preferences and geographic priorities have changed as a result of the pandemic. Investors and tenants are now more interested in “secondary” markets like Arizona, which are affordable outside of traditional centers like New York, offer a high quality of life, and have a business-friendly environment.
It’s important to be flexible and responsive to changing tenant preferences and geographic priorities to capitalize on the new trends. Look for emerging markets that can offer opportunities for growth, diversification, and affordability as businesses look to expand outside of traditional centers. Those who thoroughly research the market and form strategic partnerships will be better positioned to succeed in an ever-changing environment.
