19/05/2022
After the emergence of Covid-19 pandemic, many businesses considered this an opportunity to reduce the size of their offices and shift to remote work. Since then, the commercial real estate market has also seen significant changes.
As an investor, what should be done to keep up with this changing trend of the commercial real estate market?
The way of working has changed dramatically over the past few years. While the number of freelance workers has been increasing before and during the pandemic, companies’ staff reduction resulting from the difficult economic situation has also contributed to a dramatic increase in the number of people looking for freelance jobs.
However, at the same time, many people working from home for a long time also became aware of several inconveniences of this working style. They can hardly concentrate on work when being stuck in a small apartment with interruption from their spouse, children and pets.
Therefore, this leads to lots of people hunting for co-working spaces. This is a common area where people from different professions for different companies can share the same office space with various available services.
While the demand for co-working spaces keeps growing, the number of freelancers increases and a large number of companies strive for downsizing, this presents a potential opportunity for the investors of commercial real estate to put capital in these co-working spaces.
AI and machine learning have become widely-known in a range of industries, but in the commercial real estate industry, these technologies are not yet universally adopted. This is not necessarily caused by a lack of technological tool options, but a lack of enthusiasm of the whole industry for these innovations.
This can result in traditional real estate investors lagging behind in an increasingly tech-savvy world. However, it also creates huge opportunities for technology pioneers. Data management helps collect customer demands in detail, and the development of accurate reports is a key to identifying opportunities and risks to your business in general.
By applying more and more market-specific software solutions for the commercial real estate, most of the work can be automated and supported by advanced tools to identify and operate based on critical analysis of customer demands.
When data analytics tools and other technologies are used to automate most of “back-office” work, you can focus more on seizing highly-profitable opportunities.
Global e-commerce has seen a significant growth in the retail sales during the pandemic, reaching an impressive $26.7 trillion. After the pandemic is gradually controlled, while direct shopping is on the road to recovery, e-commerce keeps strongly flourishing this year.
Witnessing the brick-and-mortar stores changing their business model after the pandemic by combining in-person and online services, commercial real estate investors should consider investment opportunities in industrial real estate and distribution warehouses to catch up with this trend. Even big brands commonly associated with direct sales are following up the e-commerce trend.
In order to catch up with the trend, commercial real estate investors should quickly analyze the potentials of industrial real estate because this market will certainly develop more and more when businesses are changing the methods of supplying their products to customers.
The commercial real estate market seems ready for an ever-greater transformation. Savvy investors will foresee and seize these opportunities to increase their profits. To this end, make a move now with care by conducting a multi-dimensional, thorough research and analysis of the market, then you will hit the jackpot in this field.
According to Cafeland
