The Future of Commercial Real Estate: Trends for the Next Years

The world of commercial real estate is constantly changing, in part due to the continuous integration of technology at all levels of the industry and in all types of properties. More than ten years after the start of a slow but steady expansion cycle, the commercial real estate market is strong and cautious optimism remains.

Of course, investor challenges also persist, brought on by generational shifts, changing occupants, and increasing specialization in product types. And many operators are also looking to conquer new markets to meet specific needs. This is the case with Groupe Duval. Indeed, the family business is now seeking to conquer Africa and the digital world. You can find out more about the Groupe Duval project in Mediapart.

Technology is redefining industrial space

New companies that aim to improve the supply chain will not only change the way other companies acquire industrial space, but they will also begin to shape new markets as they expand.

As these new companies seek to revolutionize industrial space and continue to expand, we should expect an increase in demand for space in the market.

Dynamics of life sciences sector will drive demand for specialty real estate

As the life science industry grows, so does the need for a highly specialized space to facilitate research and development as well as production.

Investors considering alternative assets can secure higher returns than those offered by traditional office acquisitions.

The rise of coworking has contributed to a decline in traditional leases for small offices

As coworking grows, the transaction volume of small space tenants in the traditional office market has declined. While the decline in the volume of smaller deals is a challenge for investors, it may have reached an inflection point due to slower growth in the coworking industry and flexible office space.

One possible knock-on effect of this slowdown in activity is a rejuvenation of the market for small direct-to-owner leases.

Technology sector boosts creativity in office design

Tech companies are targeting millennials by locating in central business districts and often eschewing traditional office towers for a more collaborative, highly-developed space. However, in other countries this is not the case. Like the example of Africa where these tours have become very popular. Everything will depend on the location of the operators.

Their typical high growth pattern imposes a need for flexible tenancy terms and scalability. The built environment, both in terms of carefully selected location and organized space, has become a business’s most powerful recruitment and retention tool. The types of office assets have evolved into a symbiotic relationship in which each has become at least semi-dependent on the other. In cities where an urban core has been established and maintained, the development of new office space to meet the needs of companies wishing to expand their presence is a trend that is likely to continue in the years to come, possibly into the countryside. .