By: Harrison Gault
As a senior at Florida State University with the goal to pursue a career in commercial real estate, its’s important to understand and look at what the future in the industry could possibly look like. The future of this industry holds endless possibilities driven by technological advancements, sustainability efforts, and evolving market trends.
The pandemic had a tremendous impact on commercial real estate, with the shift to remote work has left many businesses rethinking their office space requirements. Some companies have decided to down-size or move to cheaper locations, while others are finding other options to the traditional office space altogether. In the coming years, we can expect continued growth of co-working spaces. These shared office environments are becoming more popular due to their flexibility and cost-effectiveness.
Co-working spaces foster a sense of community, which can benefit startups and small businesses. With the growth of the millennial generation wanting to work from home, the demand for office space has decreased. The demand for industrial properties will continue to grow, primarily driven by the continuous surge of e-commerce. There is also a growing need for large scale industrial properties due to these online businesses growing with the needs to increase their manufacturing or warehouse space.
There has been a significant increase in the importance of Environmental, Social, and Governance (ESG) factors within the Commercial Real Estate industry. In the future, ESG integration in CRE will be an important practice, reducing the environmental impact of real estate operations. This could range from energy-efficient designs to reduced waste generation. Sustainable practices mitigate environmental risks and enhance property value. Implementing ESG involves considering the well-being of local communities, addressing social issues and promoting inclusivity.
In Pinellas County some developers are focusing on creating mixed-income housing due to the rising rent rates. There is a growing demand for real estate assets that demonstrate strong ESG performance, as investors recognize the long-term value preservation and risk mitigation. As a result, CRE companies will need to align their strategies with ESG framework to attract capital and remain competitive.
As a young person with a passion for commercial real estate, I need to follow these trends and adapt to remain competitive. Amid the rise in property technology, I’ll explore innovative tools, tenant experience, and investment analysis for a successful approach in commercial real estate.
