COMMERCIAL REAL ESTATE ALLIANCE
Demographic Shifts By: Liz Berry, Associate Advisor, SVN | Commercial Advisory Group
W
elcome to 2030; millennials are reaching age 50 and most boomers have hit retirement. Wait a second, it’s only the fourth month of 2020. But 2030 is only ten years away and the sweeping demographic shifts taking place over the next ten years will be impressive. The world is continuing to evolve. Self-driving cars, automated houses, and smart technology are already folding into our everyday lives. By 2030, they will be commonplace and it will seem antiquated if someone does not have them much like those who still have a flip phone today. Real estate is going to be greatly affected by these seismic demographic shifts taking place over the next ten years. The way real estate is bought, sold and consumed over the next ten years will continue to change dramatically from the way it was twenty years ago at the start of this millennium. The integration of digital marketing and e-commerce of properties is here to stay along with the use of artificial intelligence (AI) to complete transactions. The top three generations: baby boomers, millennials and the upcoming generation Z all have their own preferred ways of doing business.
currently a resurgence in the need for travel agents, the need for real estate agents will never go away. People need assistance navigating the market. Faceto-face business may be done over a computer screen but humans need interaction in order to succeed. Residential real estate has been adapting to these digital changes for some time now and commercial real estate is next. Technological disruption is now going to have the greatest impact on the commercial world over the next ten years.
HUMAN CONNECTIONS ARE STILL VITAL
APPEALING TO ALL DEMOGRAPHICS
While an online presence is key, the importance of omni-channel marketing including person to person relationships cannot be forgotten. Just like there is
The emergence of more mixed-use development projects will provide a competitive edge for business owners by enabling them to reach all demographics at the same time. Boomers are tactile, they browse in-store then buy online. Millennials are tangible, they want everything online and they will go to a store to preview. Generation Z wants a sustainable experience that involves a personal relationship. The key to survival over the next ten years is appealing to all demographics, staying at the forefront in the use of technology and embracing change towards a new way of doing business for better or worse. Focusing on product types that include multiple commercial sectors converged will enable you to reach everyone. •
MIXED USE DEVELOPMENT Commercial markets are going to see great changes due to these varying digital factors and influences. Convergence and overlap between the established sectors are going to cause dividing lines to blur. Mixeduse development is going to be at the forefront over the next ten years with the emergence of integrated factory showrooms, online catalog displays and experiential retail including dining. Office, retail, multi-family and light industrial will be blends of one in the same. You will not have an office park without housing, shops, restaurants, and warehouse storage facilities. You will have living communities for various ages that include shops, restaurants and a wide array of amenities. Modular construction will likely become the norm for affordable workforce housing. The merging of various commercial product types will shine through most in large scale multi-use commercial projects.
SOURCE: 1 | Demographic Shifts: the World in 2030. Cushman & Wakefield.
24 | ELEVATE [ APRIL 2020 ]
