Category: Industry Trends

As a powerful supporting driver of Commercial Real Estate (CRE), e-commerce has shown how it can endure, even through a pandemic and supply chain shutdowns. Learn more about how e-commerce has helped maintain a steady demand for space — and how the Industrial sector is responding.

The global seismic shifts we’ve experience in the past few years — the pandemic, the push for social justice and climate-driven events — have converged to permanently alter trends in commercial real estate (CRE). Add to that the ticking clock for reversing the climate crisis, and we can see why sustainability trends in CRE are of the highest priority, worldwide.

The evolved workplace is here, something not at all like the traditional offices last seen in 2019. As a result of the pandemic, a revised relationship now exists between organizations and employees. A new middle ground is beginning to emerge, a more welcoming and supportive environment where new creative office environments play a central role.

Property technology — more popularly known as “PropTech” — is a buzzword being thrown around in the commercial real estate (CRE) world today, especially post-pandemic where smarter and more sustainable technological solutions are pushed to the center of conversations.

Luke Hamagiwa serves as the market leader responsible for carrying out investment objectives throughout the Mid-Atlantic and Northeastern United States on behalf of KBS REIT, pension fund and sovereign wealth fund clients. Within these markets, he is responsible for the execution of strategic business plans for each of the assets within his portfolio along with new acquisition opportunities and joint-venture partnerships.

Owners and investors in Commercial Real Estate (CRE) are working to attract employees back to the office while contending with trends such as hybrid work, competitors who offer work-from-home options, and the Great Resignation. At the same time, employees are hyperaware of their surroundings — with health and safety top of mind.

There’s no denying that workforce dynamics have spurred workplace transformation and the changing nature of work necessitated by the COVID-19 pandemic. Companies that might have never entertained remote work managed to shift their entire workforce to working from home within days in many cases.

With more than 38 million workers voluntarily quitting their jobs, 2021 was dubbed the year of the “Great Resignation” and “the Big Quit,” and the “Great Retirement.”

While COVID-19 variables may cast doubt on office work alternatives, values point to many strong returns.

After a bumpy 22 months, optimism may be making a comeback within the retail space. Last year, brands were still in a state of survival witnessed by a seismic swing in eCommerce, changing consumer behavior, and challenged supply chains.

For the multifamily housing industry, 2022 is here. Along with the new year, there’s a hope for better times as well as a need to clean-up unfinished business.

What will happen to commercial real estate in 2022? It’s a trillion-dollar question, but the trends that seemed assured and certain just a few months ago are now in flux.

Now may be the ideal time to consider adaptive reuse to convert commercial property to residential or repurposed for a different commercial use.