Industry insights, market outlook reports and commercial real estate
news, and trends from the Coldwell Banker Commercial brand.
Augmented Reality and Artificial Intelligence (AR and AI) may still be far from standard in CRE, but it’s only a matter of time. High end firms have already been using these tech tools on a grand scale. Research by Goldman Sachs estimates that by 2025, virtual reality (VR) technology alone will generate over $2.5 billion in revenue. Change is happening now and could hit sooner than many of us believe, leaving some CRE pros behind and pushing others to the forefront.
It’s called m-commerce; it combines e-commerce with mobile. It is estimated that a huge majority of Americans own a Smartphone and spend about five hours a day on them. Last year, the number of people accessing the internet via mobile surpassed the number of people doing it from a desktop computer. That is exactly why selling online is shifting from an e-commerce model to an m-commerce model and already it’s revolutionizing the way businesses market to their customers.
By now, everyone has had a chance to digest the impact of Amazon’s purchase of Whole Foods and the introduction of their AmazonGo and AmazonFresh grocery innovations. Yet Amazon’s effect on CRE goes beyond these changes.
As the future of transportation and city development changes at such a rapid rate, developers are reevaluating the demand for parking in retail, office, and multi-tenant spaces. For people living and working in densely populated areas like San Francisco and New York City, the lack of ample parking has been a reality for some time. But for much of the country, scaled back parking ratios could take some getting used to.
Retail trends have had a huge impact on the industrial market for the last few years. Amazon shifted the entire e-commerce industry to lightning-fast shipping, which means that industrial centers and warehouses are being moved to closer-to-the-city locations to handle the load.
Last year, core assets were ranked second highest among investors. This year, secondary metros took that spot. Some argue that the cap rates for core assets and investors looking for assets that produce higher yields are the reason why secondary markets are looking so much more attractive to investors this year. But if you look closely, there are 4 macro reasons why investors are shifting monies and setting their sights on secondary metros.
Retail sentiment is shifting in a big way. Many analysts point to the decline of nearly 10% in brick-and-mortar retail since last year as a signal that retail sentiment is down. However, the numbers say consumers are spending and optimistic, while industrial took the place of core assets as the second highest producing markets over the last year. Retail sentiment is shifting; here are 3 things you need to know.
There is truth to the belief that there’s a Starbucks on almost every corner. A recent study shows that there are almost four stores per one square mile. With the ubiquity of Starbucks, it is hard to imagine that the company might have reached a saturation point, but it seems that it has come to that point. The study also shows that not only are there Starbucks locations everywhere you turn, but that they are actually hurting each other’s business.
The commercial real estate sector has been seeing a lot of changes over the past several years and the industry has had to figure out how to work through these changes. One of the categories with some of the biggest changes is the grocery sector. From grocery delivery services to consumers looking for more options, there are many factors at play here and it behooves everyone in the industry to pay attention.
Has the in-store experience given way to the online shopping craze? Not quite yet, according to the experts at Coldwell Banker Commercial Affiliates. The Omnichannel Retail and Commercial Real Estate Survey of November 2016 finds that brick and mortar have yet to roll over and play dead – and, in fact, Millennials actively want to shop in-person.