There’s a commercial real estate specialty that’s gaining more and more ground (literally)—and it didn’t exist a few decades ago. It feels part retail, part industrial, but in reality it’s a sector all its own that’s performing quite well at the moment. Can you guess what it is?
Target is finally going small in a big way.
The retailer has talked for years about opening more urban stores, but it recently made it official with plans to open 100 small-format locations across the country. The planned stores, most of which will be in Chicago and Philadelphia, are less than 50,000 square feet and offer products that cater to urban shoppers, many of whom are well-to-do and don’t have a lot of options for what you might consider higher-end (but still discount) products.
The life-sciences sector of commercial real estate doesn’t usually make big headlines compared to multifamily and office properties. But the recently announced $1.5-billion acquisition of a portfolio owned by Wexford Science & Technology by Ventas was certainly a significant purchase for any sector.
There is so much coverage about how millennials are changing the commercial real estate industry that it’s easy to forget about other generations. Yes, in broad strokes, millennials want creative office spaces and mixed-use environments where they can live, work and play. But you know what? Baby boomers want that, too.
Are you worried about disintermediation at the hands of our merciless robotic overlords? Do you feel powerless to stem the onslaught of new technology? Try using it to your advantage instead.
In-person meetings, conferences and personal networking aren’t going away. But innovative new technologies are changing the game for commercial real estate, and brokers need to learn how to use them to their advantage. While many are wringing their hands at potential disintermediation, these innovations don’t have to be harbingers of doom.
Other than physically viewing an actual commercial real estate property, the best option for investors used to be marketing flyers (online or printed) that showed an aerial photo or rendering of the asset alongside a very basic description of the property.
This practice is still in use, but fortunately, today’s brokers and owners have several other visual options to market a building, most of them fueled by technological advances.
Since the legalization of marijuana in Colorado and Washington State in 2012, there’s been a lot of talk about the ramifications for commercial real estate. Those states benefit from the extra tax revenue they receive, and the industry is strongly regulated in both locales.
They’re not the only geographies affected by legalization, though. Here are the trends that began in the West but are already starting to spread.