Real estate investing often comes down to one big question: residential or commercial space? While residential investors may think they have the knowledge
How can millennials change the commercial real estate business over the next 10 years?
Millennials are already changing the real estate market in most aspects.
Whether it is residential real estate or commercial real estate, millennials are changing the market as both new investors and new “customers” of the market.
This is due to several reasons that cannot be listed fully in a single post, but if you do the research you will find results related to the following aspects:-
A new market to appeal to new consumers/customers
Millennials are changing the way that the real estate market works in general. As the new income-earners and influencers in the market, other generations of real estate investors have to cater for and target the millennial portion of the market, which requires several adjustments and innovations that did not exist before.
In order to cater for millennials, investors need to understand that millennials were raised on the idea of the ease of access to free information and a shared culture based on knowledge and innovation.
This means that millennials see things differently, and so in order to attract their attention you need to step away from the traditional methods and cater for more creative ways in regards of marketing, designing, and planning your investments.
Millennials and technology
Millennials (like myself) grew up in the waking age of technology. This made technology such an integrated aspect of their lives, and a major attraction for them.
In both fields of real estate (residential and commercial), millennials are always looking for new ways and methods for integrating technology into the market. This includes the use of new tools and services (websites such as ) that can help them make their decisions both as investors and consumers, in addition to paying more attention to marketing methods and techniques that make a heavy use of technology as a more reliable source of information and better facilitated and accelerated functions than people.
When it comes to commercial real estate, one of the main aspects that are more important to millennials than any previous generation is the design of the property.
Millennials are sick of the same old “brick cubes” that provide the same old services at the highest efficiency from a business point of view.
What used to be an “optimal” design for a business is becoming nothing more than an outdated time-tested design to be used as a “first draft” before improving it and modifying it to cater for millennials.
This means that some of the aspects that used to be considered good for business, such as the general shape of the property being designed to make the most value out of the space provided, are becoming less relevant when compared to the benefits of catering for the millennials’ desire for more creativity and change, and where catering for these needs becomes more profitable for the business than the traditional aspect of saving space.
I hope this answer was helpful for you.
And keep in mind that this was written from the perspective of a millennial.