Everyone wants to know about the latest
millennial-driven trends — especially those of us involved in commercial real estate.
Over the past few years, the Millennial
generation has been a major force in shaping all areas of CRE. This generation,
born between 1981 and 1996, stands at the forefront of commercial real estate’s
inspiration — and
the relationship is set to continue into 2020.
Let’s look at how Millennials are impacting
the commercial real estate biz and why it’s so important.
Office
As Millennials continue to dominate the
contemporary workforce, they’re making some big changes to the global office
structure. Office design schemes that we’re seeing today are almost completely
inspired by what Millennials want, and demand, from the workplace.
One of the greatest developments expected to
continue into 2020 is the open office concept. Millennials have already shared their
disdain for cubicles and closed-off spaces, but their criticism on the
open-office plan has helped the trend mature.
In 2020, experts are expecting the flexible
office space to dominate the scene. The flexible office space takes the
open-office concept and optimizes it.
Common complaints about the open office are that it’s too distracting, too loud, and too difficult to navigate. The professional world needs to be able to adapt according to each unique moment’s needs, not stay stagnant in one setup.
Common complaints about the open office are that it’s too distracting, too loud, and too difficult to navigate. The professional world needs to be able to adapt according to each unique moment’s needs, not stay stagnant in one setup.
Flex space is all about using moveable and
modular elements to give team members endless options and diversity.
Sound-proof pods, mobile walls, partitions, and mobile desks are perfecting the
open office concept, helping to boost efficiency and productivity — and it’s all thanks to
Millennials.
Retail
CRE’s retail sector is desperate to appeal to
contemporary consumers — many of which happen to be Millennials. The wave of experiential
retail is gearing up to be 2020’s hottest trend. To compete with the
convenience offered by e-commerce, brick-and-mortar is becoming more
interactive and social than ever before.
The New Year is expected to see tons of retail
pop-ups, AI adoption, entertainment-based events, and even in-store
restaurants. Millennials made it clear that they’re looking to get more out of
their shopping experiences, and CRE’s retail spaces are ready to deliver.
Multifamily
Millennials aren’t buying houses like their
predecessors, the Baby Boomers, did. Instead, they’re choosing to live in
multifamily communities. Not only is this boosting business for CRE, but it
also means that multifamily is evolving to meet its new tenants’ needs.
The most notable development is the adoption
of the co-living module. This multifamily setup features top-of-the-line
communal areas where residents come together and share common areas such as
gyms, entertainment rooms, party areas, office spaces, and sitting areas.
By going beyond the traditional home-scheme,
these communal features are helping the multifamily arena stay current and
offer contemporary tenants something new and exciting. Developers and investors
should keep this trend in mind as we enter into the new year.
Industrial
Warehouses have been under a lot of pressure
lately. As Millennials love the speed and convenience of online shopping,
retail giants like Amazon, Target, and Walmart have been battling over who can
offer the fastest deliveries. When the new norm is same-day deliveries, the
industrial sector has had to take on the responsibility.
2020 is expecting to see tech-powered
warehouses that can handle the increased volume of packages. Sorting and
shipping workflows are being optimized as industrial floorplans are
streamlining their systems. On top of this, parking lots are getting larger to
enable a seamless pick-up and drop-off schedule.
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