Business Trends

Seven Bold Predictions for CRE, by CNBC.com

File Type: Free Content, Article
Release Date: April 2014
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How will the world of commercial real estate change during the next 25 years? CNBC.com recently asked key players in the industry to reflect on “how commercial real estate will be buffeted by changes in demographics, technology, globalization, economic and environmental realities and a host of other trends.” A March 24 article by Robin Micheli presents their seven bold predictions about how commercial real estate will be different in 2039:

  1. Most shopping malls will be extinct; only those producing very strong revenues will survive.
  2. Brick-and-mortar will go tech — and warehouses will go back to the drawing board — resulting in new models for retail and distribution facilities; “efficient distribution will be key, and the increasing importance of logistics and automation will impact warehouses across the country, many of which are obsolete even now.”
  3. Baby boomers will be behind the biggest construction boom; senior housing will become “a major food group.”
  4. Urbanization will sweep the planet, largely driven by the desire of Gen X and Gen Y to live, work and play in cities.
  5. The much-reported death of the suburbs will prove to be greatly exaggerated, but denser, mixed-use development will make those suburbs look much more like cities.
  6. Workspaces will be transformed by technology; office complexes of the future will look and function more like today’s tech company campuses, with open floor plans, workbenches, plug-and-go digital workstations and amenities like on-site massages, bistros and dry cleaning.
  7. Green buildings will come of age; “the skyscraper of tomorrow will monitor how much energy-sapping CO2 is in the air … and will similarly monitor light, energy, water and heat levels and respond by controlling them, increasing efficiency as well as human and environmental health.”