Watch These 5 Markets in 2020

Commercial real estate is a business that’s all about location. That said, CRE developers and investors always need to keep up with the latest market ratings to fuel success amid the changing tides.

The start of a new decade means that everyone in the industry is busy formulating their new strategies to navigate the markets, and nothing enhances this process like strong analytics. According to data and research conducted by PWC, these are the best commercial markets to watch in 2020.

Make sure that these 5 top-rated cities in the United States for commercial real estate are on your list.

Austin, Texas

Austin came in first place on PWC’s list of top cities for commercial real estate investments. This Texan hotspot is a highly-rated 18-hour city that’s been gaining the attention of global and national investors. Austin has been rising in esteem lately and it’s improving in all-around CRE prospects.

In the United States and beyond, there’s no place that’s quite like Austin. The local community’s entertainment, art, and metropolitan amenities make it a city to keep an eye one.

Raleigh-Durham, North Carolina

Second place went to Raleigh-Durham, the two cities are some of North Carolina’s most popular locations. The two sectors that have seen the most growth and development in their office and multifamily markets – so CRE pros should pay some extra attention to these thriving arenas.

Raleigh-Durham is renowned for its esteemed and prestigious educational facilities, such as the University of North Carolina and Duke University. Investors are paying a lot of attention to Raleigh-Durham’s developing prospects as a popular tech hub.

The growing number of tech companies calling Raleigh-Durham home are fueling growth in the local office and multifamily markets.

Nashville, Tennessee

Tennessee’s metropolitan gem, Nashville, made third place on PWC’s list. This marks substantial gains from last year’s rating of fifth place. Nashville is steadily climbing the ladder and elevating the city to top-tier status.

Investment and development can thrive within this 18-hour city, so don’t count Nashville out. Pay special attention to the local retail scene as well as the entertainment industry since Nashville is a renowned destination for both recreation and tourism.

Charlotte, North Carolina

Charlotte was rated 4th in overall commercial real estate prospects. This city is gaining loads of attention from start-ups and companies looking to take their business to the next level. According to the report, Charlotte’s recent economic expansion is attracting manufacturing and technology firms.

The city has experienced two solid decades of growth, so investors should pay special attention to Charlotte’s commercial real estate market.

Boston, Massachusetts

What Boston lacks in size and population density is made up in quality and experience. Boston’s astounding economic performance has been catching the eyes of commercial real estate investors and developers since 2019.

The real estate market in Boston is fueled by the local area’s vast opportunities for education and business.

Investors and developers should apply these commercial real estate data insights into their 2020 strategies. Commercial real estate professionals need to keep a sharp eye on these 5 cities brimming with investment opportunities.

Using Technology to Enhance the Tenant Experience

Commercial real estate is being transformed by technology.

Tech has the ability to streamline industry workflows, expand a listing’s market reach, and even mitigate the legal risks associated with these big-ticket transactions. It seems like every aspect of CRE can be boosted with a little help from technology – and it’s not only the professionals in the business that are reaping the benefits.

According to the latest 2020 Commercial Real Estate Outlook from Deloitte, technology can also improve the experiences of CRE tenants. The report looked at how using digital tools and analytics can completely revolutionize the tenant experience.

The report goes as far as to state that the new mantra for CRE should be ‘location, experience, analytics.’ In this blog post, let’s look at some strategies that can elevate your tenant’s experiences by using tech.

AI and IoT

Technology’s applications in commercial real estate are getting more complex. The ‘it’ tools of last year are likely already outdated as contemporary development gets more diverse than ever before.

As a result of this amplification, industry standards have also gotten higher. Tenants are demanding better, newer, and faster tech integrations from commercial real estate properties.

Everyone has their eyes on AI and IoT. These are the two hottest trends in CRE technologies and they can enhance the tenant experience in a myriad of ways. But, both the Internet of Things and the IoT can do more than just keep tenants happy – they can also be powerhouses in boosting business.

The multilayered benefits of investing in AI and IoT are big reasons to consider applying them to your commercial property module.

Getting Serious About Security

One of the largest motivators to apply tech within a commercial property is to improve security. Using technology like Smart cameras and sensors can keep tenants feeling safe and secure. 55% of survey respondents noted that they’re looking to have access to tech-powered security, guidance, and constant online support.

Invest in Smart Building Features

The experts at Deloitte are predicting a 5-year countdown to a Smart CRE industry. Analysts state that Smart integrations will soon become the new norm.

The competition will be heating up around Smart amenities. Industry executives who took part in the survey said that they will be increasing their smart building portfolios over the next 18 months.

Don’t fall behind. CRE professionals should start getting serious about investing in Smart technologies to prevent their assets from becoming outdated.

Make the Switch to Mobile

Mobile access is a must for today’s tenants. Building users want to be able to download everything they need with the tap of a button. By 2023, the global market for mobile apps is expected to boom and reach $156 billion – and CRE will be a part of it, too.

Deloitte experts recommend using increased data to create an interactive, intuitive, and IoT powered app to open up a line of communication between building owners and tenants.

When asked to vote on which app features would best improve the tenant experience; app-based entry into relevant areas, more building information, property management contact information, and lists of amenities in the surrounding areas were all big demands.

Use these tips to improve tenant experiences with technology. 

How Will E-Commerce Continue to Impact CRE in 2020?

In today’s world, nearly every major industry is being impacted by e-commerce. One way or another, the online shopping revolution has instigated change for businesses.

When it comes to the commercial real estate arena, e-commerce plays a crucial role in shaping the rules of the game. Whether it’s by influencing tenant demands, sparking new trends, or restructuring the physical shape of properties; no one can deny that e-commerce is now apart of commercial real estate.

Resultantly, e-commerce’s influence on CRE is set to remain strong into 2020 and beyond.

Let’s take a look at two of the biggest commercial sectors that are feeling the e-commerce heat this new year:

Retail Takes On a Global Perspective

Brick-and-mortar retail isn’t what it used to be. Online shopping and e-commerce are restructuring the entire physical retail module – and this is undoubtedly impacting the commercial real estate biz.

After surviving the so-called ‘retail apocalypse’ of 2019, physical shopping has transformed into something innovative, creative, and high in demand. CRE’s retail space requirements are changing since brands are adapting to the new era of shopping.

Let’s face it: shopping can be done anywhere when the Internet is involved. The best way to outdo the convenience and speed of online shopping is by offering consumers something they truly can’t deny – experience.

Retail brands do not necessarily need to have thousands of locations around the country anymore. Contrarily, most retailers are choosing to create amazing spaces in hot cities around the world.

For contemporary consumers, quality beats quantity. As shopping becomes more experiential and less about necessity; brands are cultivating exclusivity, legacy, and uniqueness.

Having a few fantastic and diverse retail spaces in popular markets is boosting business in big metros all over the world. Retail brands are striving to expand globally rather than on a town-by-town basis. It’s more strategic to set up grounds in bustling affluent global cities are brands strive to stay afloat in today’s globalized world.

Industrial

As e-commerce continues to expand its reach, there is an increasing demand being placed on warehouses and distribution centers. As shipping deadlines get shorter and available products continue to diversify, who do you think carries the direct load? It’s certainly not the Amazon’s of the world.

Instead, it’s CRE that takes on the responsibility and makes all of the e-commerce promises possible.

2020’s warehouse demand is expected to be through the roof as last-mile logistics become increasingly more intense. There need to be more distribution centers spread out around the globe to streamline the delivery process.

The shapes of warehouses are also changing. Pick-up and delivery demands are increasing and industrial spaces need more parking lots and loading zones. These already-massive centers need to get bigger, better, and more organized.

Technology and AI will play a big role in optimizing the contemporary warehouse scene.

CRE Pros: Prepare For What’s To Come

All in all, it’s obvious that CRE is being impacted by the ever-growing popularity of e-commerce. This digital marketplace is making waves in the commercial business, so make sure that you and your business are prepared to ride it out.

Transit-Oriented Developments are the Golden Child: Here’s Why

You’ve likely heard the term ‘transit-oriented developments’ being thrown around lately. Whether it’s in business conversations, in article headlines, or on an expert interview; it seems like everyone in the commercial real estate business is interested in transit-oriented developments.

But why the sudden burst in popularity?

Well, it’s really because transit-oriented development projects are the new ‘golden child’ of the commercial real estate industry. It seems like every commercial real estate pro has their eyes on transit-based developments. Tenants, developers, or investors all love these properties – and it’s not hard to see why.

Let’s take a deeper look at transit-oriented developments in commercial real estate and why they’re causing such a buzz:

Transit-Oriented Developments Defined

First, we need to define the term.

A transit-oriented development is referring to a commercial real estate property that is located nearby local public transportation networks. This provides the building occupants greater access, convenience, and opportunity while also placing the building within a popular and bustling area.

Tenants Prefer Them

There’s no debate that transit-oriented developments make life easier for tenants. Whether it’s multifamily, office, retail, or even restaurant property; being located nearby local transit options makes it convenient for residents and employees to get where they need to go.

This is especially true in big metro areas where driving may not be the most convenient option. In today’s busy world, more and more professionals are choosing public transportation as their daily mode of getting to and from their destinations.

Tenants are more likely to rent out a space that’s located near public transit. Clients and consumers prefer the ease and accessibility of public transit options when visiting a business or brand. Team members are attracted and retained by these prime locations.

No matter how you look at it, it’s a winning property type.

Great Marketability for Property Owners

Property owners and investors always have their eyes on transit-oriented commercial buildings. Being close to the local area’s network of public transportation is amazing marketing leverage within the commercial market.

On top of this, transit-oriented developments are more likely to produce high returns since commercial properties close to transit opportunities are a hot commodity. It gives investors a great competitive advantage, increases the property’s market value, and are profitable additions to any commercial portfolio.

Developers Love That They Attract Prospective Buyers

Developers are always looking to build a commercial project that has access to public transportation. Planning a new development along the city’s public transit network is a surefire way to attract interested buyers.

Transit-focused projects quickly catch the eyes of serious buyers who are willing to pay for the convenient location. It’s a great strategy to ensure the long-term success and profitability of a commercial property.

These are all reasons why transit-oriented developments are so popular in today’s commercial real estate industry. Make sure you’re adding this diverse and convenient property type to your commercial strategy in 2020 and beyond.

PropTech 101: What CRE Professionals Should Know

Everyone in the CRE biz has doubtlessly heard the term proptech getting thrown around.

Whether it’s been in article headlines, on the web, or during business conversations; ‘proptech’ has officially integrated into the commercial real estate vocabulary.

Unfortunately, there isn’t always an on-hand dictionary available to help novices decode the latest and greatest CRE lingo. While proptech popularity has surely skyrocketed during 2019, some of us still may be confused as to what exactly proptech is.

We’re happy to clear up the confusion; covering what proptech actually is and why CRE professionals should care.

PropTech Explained

The moment you’ve been waiting for is here… when you finally get a concise definition of the term PropTech.

According to real estate technology experts at Forbes, proptech is ‘the acronym used to describe any technology for the real estate space.’


If that’s not clear enough, here’s another universally-accepted explanation developed by major players in the fields of CRE technology:

“Property technology, in short called Proptech, sometimes also called Real estate technology, is a term that encompasses the application of information technology and platform economics to real estate markets.”

This basically means that the term ‘proptech’ is a fancy way of saying ‘property technology’, which really refers to tech employed by the real estate industry to help make navigating the business easier, quicker, and more efficient.

That said, proptech can be understood as the way that cutting-edge technologies are influencing the world of commercial real estate. As more and more tech-savvy advancements seep into our day-to-day workflows, the industry is using the umbrella term ‘proptech’ to explain what’s happening.

How PropTech is Transforming CRE

Truth be told, every commercial real estate professional should be aware of the proptech revolution. While proptech does refer to real estate as a whole, it yields a particularly strong influence over the commercial side of things.

Not only do property technologies help CRE professionals achieve greater organization, but they also help to streamline workflows.

As with any tech tool, proptech software expands the capacity of its user on a quantum scale. The volume of available tech services enables today’s CRE workforce to achieve never before imagined possibilities.

Thanks to proptech, CRE is extending its reach and streamlining workflows.

Why PropTech Matters: 6 Key Advantages

Now that you know what the term proptech is referring to, you may still find yourself wondering: “why does it matter?’

In reality, proptech offers CRE players massive competitive advantages in the field. Here are 6 key applications where utilizing proptech can make all the difference:

  • Helping your company/practice stay up to speed with the contemporary business module.
  • Appeal to clients from younger generations.
  • Keeping in contact with your client pool.
  • Record massive stores of information and perform data analysis that helps to perfect the lead-to-deal funneling system. 
  • Attract winning team members.
  • Boost your services’ selling point with tech-fueled strategies.

Congratulations! You’re now versed in all things proptech. Don’t forget to check out our blog for more.

4 Coworking Trends Catering to the Mobile Workforce in 2020

The global professional infrastructure is not what it used to be. The once rigid, stuck-in-the-old ways workplace scene has undergone immense changes in the past few years, transforming into something completely new.

The contemporary office scene is more flexible than ever as it’s adapting to meet the needs of the evolving workforce. Thanks to advances in communication and transportation, business professionals are spending more time outside of the office and taking their work elsewhere.

The mobile workforce is bigger than ever, and 2020’s numbers are going to expand even further. In the United States alone, the mobile workforce population is expected to reach 105.4 million members. This marks a massive growth spurt when compared to 2015’s 96.2 million. Analysts state that mobile workers will comprise nearly 75% of the country’s working population.

When so many of today’s workers are embracing mobility, the physical office space needs to change up its game in order to support this new system. Catering to the mobile workforce is a must as we approach the new year, and CRE is preparing with these 4 popular coworking trends:

Greater Digital Compatibility

As remote workers continue dominating the workspace, coworking offices need to make sure they’re offering greater digital compatibility. Mobile-friendly software and systems that can be used both in and outside of the office are fueling the newest wave of workspace tech.

This is specifically important when it comes to coworking as it gives team members the agility they need to succeed. Whether they’re on the go or at their desk, mobile workers need to be able to seamlessly transition between locations without missing a beat. We’re seeing a massive shift towards flexible tech systems in coworking.

Flexible Office Spaces are in Hot Demand

Just because remote workers can get their jobs done from nearly anywhere doesn’t mean they’re ready to give up the office. As more tasks become mobile-friendly, the baseline workload for remote professionals is getting larger. In many cases, non-professional environments such as cafes and at-home offices aren’t supporting their diverse needs. This is driving more people to coworking spaces – specifically ones that are flexible enough to support their unique needs.

Boosting Workplace Security

With so many people going in and out of coworking spaces, security is becoming a top priority. On-site surveillance and hired security guards are the new norm for the workplace – and specifically those with a large population of mobile workers.

This means team members can rest easy knowing that their belongings are safe when they run out for a meeting or to grab lunch. Since traveling light is a key aspect of the remote working module, team members need to know that their belongings are being taken care of.

Comfortable and Sleek Office Designs

Today’s mobile workforce is looking for coworking spaces with a pleasant office environment. Establishing a healthy workplace culture has been at the forefront of CRE’s office sector’s mind, and it’s even more important for attracting remote workers.

When they have the option to work anywhere, office design needs to step up their game and make remote workers want to do business there. This is being achieved by comfortable ambiances, sleek designs, and strong positive workplace cultures.

As remote working becomes the new norm, keep an eye on these coworking trends in 2020 and beyond. Stay tuned for our upcoming CRE news!

Trends to Watch: The Marriage of Shared Office and Hotel Space

There’s a new marriage that’s taking the CRE business by storm ⁠— and it’s between two unlikely sectors.

As the world around us continues to change at never before seen rates, industries need to adapt to stay current. Offices and hotel spaces are coming together to create one united solution for the challenges that both industries are facing today.

Let’s take a deeper look at how the office and hotel scenes are melding, why it works, and emerging trends to keep an eye on.

The Evolving Era of Business

Offices and hotels are coming together in response to concurrent shifts happening in both industries.

Business isn’t what it used to be. In today’s highly globalized and tech-centric world, professionalism has taken on a completely new face. The contemporary workforce is spending more and more time outside of the office; be it at restaurants, building lounges, or cafes for meetings.

These small excursions are also met with business trips, where professionals and associates are traveling for business conventions, international meetings, and company events. The spectrum of where business happens is getting broader than ever before, going beyond the borders of cities, states, and even continents.

Why It Works

Thanks to advances in communication and transportation technologies, today’s highly mobilized workforce has paved the way for a merger between CRE’s office and hotel sectors.

Cutting-edge hotels across the globe are boosting their curb appeal by offering business-related amenities to their guests. Free high-speed wifi, innovative work lounges, quiet spaces for catching up on emails — the list goes on.

These updates to the hotel scene are facilitating a strong balance between work, life, and play. As the distinguishing line between vacation and workdays continues to blur, hotels aren’t merely a space for getting away from it all.

To the same end, offices aren’t only a place to get work done.

The office scene is adopting new and creative ways to boost workplace morale, increase efficiency, and improve productivity. Innovative layouts filled with state of the art hotel-worthy amenities for entertainment, wellness, and rejuvenation are the newest wave of workspace design.

When both sectors are facing the same pressures to optimize their assets to deliver an evolving user experience, hotels and offices are sharing some of their secrets – creating something new and exciting.

Here’s What to Watch

Looking into the future, make sure to keep an eye out for business projects between hotel giants and big names in office real estate.

Deals fueled by professionals on both sides of the spectrum will be all the rage in 2020 and beyond, as the race to create a collaborative office/hotel space is on.

While the main contributors to the movement are players from hotels and offices, don’t think it will stop there. Retail spaces, restaurants, and wellness-based services are set to have a place in this revolutionary blend between business and pleasure.

In a highly competitive industry like commercial real estate, collaboration is a key to success. For more news on what’s happening in CRE, explore our blog.