CRE trend: Home is where the work is

“Work from home” is the first major trend highlighted in the Emerging Trends in Real Estate 2021 – produced by the Urban Land Institute (ULI) and professional services network, PwC.

This “trends and forecast publication” is now in its 42nd edition and is highly regarded in real estate and commercial real estate (CRE) spaces. The latest edition provides “an outlook on real estate investment and development trends, real estate finance and capital markets, property sectors, metropolitan areas, and other real estate issues”, focusing on the United States and Canada.

Go home

The trends in the report are not necessarily ranked, but “working from home” (WFH) opens the first chapter of the report, titled Dealing with Certain Uncertainties, which attempts “to start the process of discerning the trends that Covid-19 has instigated and their long-term potential”.

It continues: “One of the most oft-mentioned themes that we heard [during research for the report] was that Covid-19 did not create new trends but accelerated those that were already underway”.

And stay there

The report goes on to say that this trend’s sticking power was boosted by its early successes. “The WFH experiment has gone better than most managers and employees had expected, since new teleconference tools and advanced information technology systems have allowed for effective communication and collaboration (so far),” it reads.

Looking to the future, the report says that over 90% of the Emerging Trends survey respondents agreed that even after the Covid-19 crisis has abated “more companies will choose to allow employees to work remotely at least part of the time.”

This experience of WFH has also spurred experimentation in work models from companies, with several announcing either a permanent move to remote work or increased flexibility for their workers.

“History suggests that offices will remain the dominant location for most white-collar employment, but the pandemic has taught us that there is a definite new variation now in the mix,” it concludes.

Making Your Real Estate Portfolio Green

Commercial real estate has long been striving to become a more environmentally-friendly industry. Sustainability concerns and CRE go hand in hand, and green-minded strategies continue to play a noteworthy role in this business.

Even in the face of the coronavirus crisis, commercial real estate did not lose its long-standing focus on creating greener portfolios. With environmental concerns on the rise, the trend of sustainability is gaining momentum. As a result, commercial real estate has slowly been shedding its wasteful habits and adopting new green models.

Moving forward, all signs point to a green commercial real estate industry. Is your portfolio prepared?

If you haven’t already been thinking sustainable, it’s time to start. Now is a good time to begin investing in green properties. Make “green investing” a part of your commercial real estate portfolio – here’s why:

Attract More Tenants

As global sentiments become more focused on sustainable development, going green can help your portfolio attract more tenants. Today’s companies are passionate about maintaining their commitment to going green – even when it comes to the place that they reside. A green asset can out beat comparable listings simply because it is eco-friendly.

Attracting environmentally-minded tenants to your commercial space is one tangible motivator to prompt investing in green spaces.

Stay Ahead of the Curve

Commercial real estate is set to become a green industry eventually. While the transition may seem slow, it’s steadily moving forward. There’s little to no chance for green efforts to revert on themselves and become obsolete. Instead, green investments in CRE will become a ubiquitous element of this business.

Getting involved with green investments early will put your portfolio ahead of the curve, helping you prepare for the future of CRE.

Gain Access to Financial Benefits

Sustainable investing can open the door to substantial savings. CRE investors with green portfolios gain access to grant programs, development support, and joint investment interests specializing in environmental efforts. Making green choices can improve your investment returns with key financial benefits.

Compete with Industry Leaders

When CRE giants make a move, the rest of the business takes notes.

Nearly all of the big names in commercial real estate are publicly dedicated to sustainability. Follow in their footsteps to keep pace with the best in this business. Going green will set your portfolio on the same foundations as industry leaders.

Modernize Your CRE Culture

Going green is the way of the future. The industry is slowly transforming – but once the change happens, sustainability will be the baseline of business. CRE investors don’t want to wait until it’s too late, when the competition for green assets is through the roof and prices are higher than ever.

Stay prepared by developing a green portfolio in advance. Right now, sustainability is a best practice for modernizing your commercial real estate culture. Your portfolio will be primed and ready for the increasingly eco-minded market of the future.

Creating a green portfolio will set up your investments for success and prepare you for the market’s next movements.

These Perks are Getting Employees Back into the Office

Over the past few months, office owners and team leaders have been doing everything they can to make their workspaces safe and healthy. Office buildings have undergone massive alterations to prepare for the full-scale return to the workspace… but when will that happen?

Changes to the Office Space

Today’s offices are contactless, tech-powered, and socially distant. Commercial property owners and residing tenants have teamed up to build an office space that does not put occupants at risk.

This required immense investment on the part of CRE and individual companies, but the result is an office that can accommodate workers safely. In these times, health and wellness are priceless.

Even though COVID-combatting protocols are being adopted across the sector, most workers are still yet to return to work. WFH remains as the primary professional landscape since COVID-combatting efforts did not convince workers to come back to the office.

If All Else Fails, Incentivize It

There’s something about amenities that wins people over.

Office tenants have taken this route to convince their teams to return to their workspaces. This new incentive-driven company culture trend is giving workers a reason to come back. But, beyond the attraction, office perks are also solving some of the key issues that today’s workforce has been dealing with since the pandemic.

For example, offices and schools closed at the same time earlier this year. Even though offices are slowly reopening, not all schools have welcomed students back again. As a result, workers with children cannot return to the office without paying for babysitters – which isn’t always feasible in these challenging financial times. Allowing team members to bring their children to the office with them is enough to solve one barrier keeping people away from the commercial workplace.

This is one example of how offices are adding perks to draw people back to work – but there’s more. Let’s look at 3 other benefits that are gaining momentum within the office scene as companies try to win back their teams:

Free Lunch

Free, pre-packed lunches are also becoming a norm for in-office employees. Companies are providing free meals for their workers who have come back to the office. Not only does this financially benefit team members, but it also mitigates the risks of having to enter and exit the office building to get lunch from external restaurants.

Learning Pods for Children

With workers bringing their children to the office, many companies are creating positive educational environments for the little ones. Companies are setting up learning pods for children – and they’re even hiring professional tutors to teach them.

Discounts on Parking

Parking at home is free, so offices needed to compete if they wanted to win workers back. Free or discounted parking is becoming another industry standard within the office sector as companies want to make the transition back to the office as smooth as possible.

Companies are heavily investing in their commercial operations to get their workers to return. Will these efforts introduce new amenities that expand the current workspace model?

Hotels Offering Day Rates to Lure the WFH Crowd

As the old saying goes, hard times foster growth.

With this in mind, it’s no surprise that the hospitality sector is changing so rapidly. Hotels have had a tough year.

2020 introduced challenges for every facet of commercial real estate – but travel-based industries saw unparalleled disruption. For the first time, travel bans and market closures put all tourism on hold. Whether for work or play, there were no guests to be found in vacant hotels for months.

Reopening markets brought reprieve for many CRE sectors, but hotels still had a lot of work to do. The lifting of official travel restrictions simply was not enough to attract guests back into hotels. Social distancing concerns for health and safety kept guests at bay, preventing hotels from seeing any relief.

The Hotel Space is Reasserting its Value

As a result of the unsatisfactory market climate and negative sentiments from the public, the hotel space has been forced to reassert its value. Over the last few months, hotels have been working to change up their gameplans and re-calibrate their models.

Since these efforts have kicked off, we’re seeing hotel robots, tech-powered sanitation, and effortless social distancing dominate the hotel scene. These developments have made hotels cleaner, safer, and healthier than ever.

But, with tourism remaining notably low, hotels needed to further their efforts and find a new target demographic.

The New Strategy: WFH Professionals

Instead of jet setting leisure-lovers, hotels have shifted their focus to the world of business.

Right now, hotels are offering their rooms as personal office spaces to attract business crowds. It’s been months since offices have been closed, leaving a massive population of workers without an official place to work.

The WFH trend has been difficult to adapt to, forcing households to try and fit everything into a single space. At this point, many professionals are tired of working from home – but they’re also not ready to go back to bustling office spaces.

As a solution, hotels have introduced the solo office space.

Hotels across the country have begun offering daily rates for out-of-office professionals looking for a peaceful place to do their work. Of course, they’ll also gain the added bonus of access to all of the amenities the hotel has to offer. Dining, fitness, pools, and other luxury options are attracting business people to give the daily hotel workspace a whirl.

Blending Hospitality with Office Needs

This isn’t the first time that hotels have considered adopting professionally-focused strategies to enhance their business models. Even before the pandemic, when remote working was becoming an increasingly popular trend, hotels were dipping their toes into a flex-space system.

The contemporary hotel model has been seeking to create a place that perfectly adapts to a guest’s evolving needs. Whether it be work, play, or relaxation, the future of hotels continues to point towards flexibility.

Looking ahead, commercial real estate professionals should be considering how this innovative hotel model will adjust when offices finally do re-open and welcome their teams back again. Keep your eyes on the rapidly-changing market to see what happens next.

What’s Happening in the 5G World in 2021

The 5G revolution is unfolding before our very eyes – but if you don’t look closely, you’ll miss it.

5G, or fifth-generation of cellular technology, has been promising lightning fast speeds and incredible bandwidths since its initial announcement in 2019.

However, it was still a far-off reality at the time. 5G’s intensity requires a substantial technological infrastructure to actually deliver on those wow-factor promises. At the time, the network lacked the foundation for 5G to become the national standard of connectivity.

Since then, leaders in tech and communications have been working ardently to build the network to host 5G – and they’re not doing it alone.

Commercial real estate plays a significant role in preparing for the full-bodied launch of 5G. Being at the forefront of the commercial scene, CRE’s network of buildings will be primary homes to 5G tools and apps. This is creating a substantial link between this new technology and commercial real estate.

CRE pros need to keep their eyes on 5G’s progress. Here’s what we need to be watching in the 5G space for the new year:

Tracking 2020’s Progress

2020 was expected to be the year that 5G took off. This prediction only came true to a certain degree. In 2020, 5G has been slowly rolling out. The transition from 4G to 5G is proving to be a slower process than initially expected.

4G LTE remains the bulk processor for mobile network connections. Meanwhile, 5G’s infrastructure is gradually being built. Today, the primary goal of cellular companies is focused on development. Setting up, perfecting the tools, and working on facilitating a seamless transition remains top of mind for 5G in 2020.

The jump to 5G is immense. When 5G becomes the standard, running at its full potential, the world will see the tech boost we’ve all been waiting for.

What’s To Come in 2021

Announcements have already been made that 5G will be coming into tangible effect in the new year. Apple has already claimed that 60% of its new phones will be running on 5G in 2021. AT&T is also planning to scale its 5G network in the new year.

When this happens, the world’s latent tech capacity will finally be able to come into play. Right now, we have many technologies, such as smart cities and IoT buildings, that aren’t yet at their fullest potentials. 5G will provide the necessary power and speed to give the world a demonstration of the heights of modern tech.

In 2021, 5G will continue to be more active in the mainstream. By the time we’re approaching 2022, it’s possible that we’ll be on the precipice of a full 5G activation.

Impacts on the Commercial Space

In the coming years, expect PropTech to erupt across all sectors. Commercial real estate will be at the forefront of 5G’s transition – and professionals in this industry need to be ready to carry the weight. As we prepare to welcome 2021, now is a good time to strengthen the tech infrastructures of commercial portfolios.