Watch as These 6 Trends Shape in CRE This Fall
The change of seasons marks a natural time to look back from where things have come and look forward to where things are heading. In the commercial real estate industry, several trends that were identified by leading experts like JLL, Deloitte, General Electric, and Forbes, continue to shape the CRE industry in the second half of 2017. Here are 6 commercial real estate trends to look for this fall.
- Technology. By 2020, the digital experience will have permeated nearly every aspect of our lives, according to Sphinx Solutions. In 2017, technology trends point to artificial intelligence (AI), Internet of Things (IoT), virtual and augmented reality (VR, AR) as well as conversational user platforms. For example, QVC has begun to incorporate augmented reality into their business model to enhance customer experience and promote customer interaction.
- Sustainability. From green buildings to recycled packaging and more, the industry of commercial real estate aims to seek new pathways to sustainability. Developers like Regency Centers have committed to Green Bond issuance, solar panel initiatives, and long-term sustainability goals to improve the environment and increase value across their portfolio.
- Data. Moving at the speed of light, real-time data is changing the way CRE professionals and business owners in general operate on a daily basis. Companies like (RE)meter that provide real-time data support to the CRE industry are increasingly in demand, and industry experts expect this demand to continue to skyrocket.
- Customer Service. Human experience has risen to the top of the list in commercial real estate. Despite the advances in technology that might suggest a retreat to machines, the opposite is happening. Forbes describes research that reveals customer service is more important now than ever before, with 72% of businesses saying customer experience is their top priority.
- Volatility. A trend less appealing to some CRE professionals, the uncertainty and risk inherent in the marketplace continues to press companies to rethink business models. While this year has been marked with bankruptcy and store closures, it has also witnessed a surge in mergers and acquisitions, which can be offer stabilization in the end. Retail Week noted in early August, there were deals galore in last week as B&M snapped up Heron Foods and DFS bought Sofology.
- Marketing. The trends in CRE marketing in particular can be summed up in one word: digital. CRE professionals have at their fingertips social media, data, and smartphones, literally at their fingertips. The days of only in-store shopping are long gone, and retailers now have many more opportunities to interact with customers – and so does the competition, MicroStrategy reports. To ignore the power of digital marketing with more people online now more than ever is professional suicide.