After the Covid-19 pandemic, many companies see this as an opportunity to reduce the size of their offices and move to work more online. Since then, the commercial real estate market segment has also shown significant changes.
As an investor, these are the things you need to know about the ever changing trend of the commercial real estate market.1. Invest in a co-working space
The way people work has changed dramatically over the past few years. While freelance work has been on the rise before and during the pandemic, the fact that companies are cutting staff due to the difficult economic situation has also contributed to a significant increase in the number of people looking for these freelance jobs.
However, at the same time, many people who work from home for a long time also understand that working from home also has many inconveniences. You can hardly concentrate on work when you are in a small apartment with your family, children and pets distracting your work.
To change this, many people have sought out co-working spaces. This is a common space where people from different professions for different companies can use the same office space with the available facilities of this space.
With the demand for co-working spaces growing, the number of freelancers increasing and many companies looking to downsize, This will be a good opportunity for commercial real estate investors when choosing to pour capital into these co-working spaces.
2. Leverage data analytics
AI and machine learning have become ubiquitous in many industries, but in the commercial real estate sector, these technologies are yet to be universally adopted. This is not necessarily due to a lack of technological tool options, but rather because the industry as a whole is not keen on these innovations.
This can leave traditional real estate investors behind in an increasingly tech-savvy world. However, it also creates huge opportunities for technology pioneers. Data management helps you capture customer needs in detail, and building accurate reports is key to identifying opportunities and threats to your business as a whole.
By leveraging more and more software solutions specifically for the commercial real estate market, you can automate much of the work and are supported by advanced tools to identify and act on critical analysis of your customer needs.
When you use data analytics tools and other technologies that automate much of your “paperwork” activities, you can focus more on “closing” investment opportunities with high profit potential.
3. Industrial real estate development and distribution warehouse
Global e-commerce has seen a significant increase in the share of retail sales during the pandemic, reaching an impressive $26.7 trillion. While direct shopping is showing good signs of recovery after the pandemic is gradually contained, e-commerce has not stopped growing strongly this year.
With brick-and-mortar stores changing their business models after the pandemic, combining in-person and online services, commercial real estate investors should consider investment opportunities in industrial real estate and distribution warehousing to keep up with this trend. Even big brands with a tradition of direct selling are joining the e-commerce trend.
Commercial real estate investors should quickly analyze the potential of industrial real estate to catch the trend because this market will certainly grow more and more when businesses change the way they provide their goods to customers.
The commercial real estate market seems poised for an ever-greater transformation. Savvy investors will foresee these potential opportunities and seize the opportunity to increase their profits. To do that, act now by carefully and multidimensionally studying, researching and analyzing the market, you will be able to reap success in this field.
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