Top 5 Commercial Real Estate Trends in 2016

 December 20, 2016

By  Guy Gray

When it comes to remaining on the cutting edge of commercial real estate, the ability to identify trends in the marketplace is key.  No one wants to be the last one standing in the increasingly antiquated large scale retail mall portfolios or be behind the times when it comes to property layout and design.  Never fear, the folks at Quarem have taken their commitment and expertise in data management and analytics and have put together a list of the top 5 CRE trends for 2016.  We break down what you need to know to adapt and grow going into the new year.

Election Years Mean Uncertainties

Election years in the U.S. are notorious for breeding uncertainties in economic markets.  While it may not seem intuitive, these nail biting moments on wall street trickle down to Main street and have an immediate impact on CRE portfolios.  We’ve seen an increasing trend toward shorter-term leases and space downsizing as companies play the wait and see game, analyzing what impact the new president will have on economic policies, jobs growth and overall consumer confidence.  Occupancy remains strong, but smart CRE owners should maintain flexibility in their lease negotiations to accommodate antsy tenants.

Technology and Efficiency

With the rise of technology for managing everything from big data to your home’s climate system, CRE professionals managing portfolios big and small have begun recognizing the importance of lease administration and property management solutions that use technology to simplify and streamline operations.  Gone are the days when you needed a full office worth of staff, and the associated overhead, just to be able to run the next year’s projections.  With cloud-based solutions, like the Quarem Vantage platform, property owners can view figures and comps at a glance, allowing instant and on-the-go access to your entire CRE portfolio.  CRE professionals are utilizing these types of solutions more frequently and it’s a trend we only see growing in the coming years.

Data is King

While having the latest and most accurate data has always been a demand of professionals in all fields, in CRE we’ve seen a push toward more nuanced approaches to the collection and use of data points for building and maintaining complicated portfolios.  Having access to neighborhood demographics, market trends and specific property information all in one centralized document or software application has allowed CRE managers to act quickly in response to changing market conditions.  We see further collection of detailed data, whether it be from analysis of existing lease abstracts or external sources, as allowing for further growth and diversification of CRE portfolios industry wide.

Information Security

With the increase of information and technology, CRE managers are seeing the need to ensure that confidential and proprietary information remains secure.  Cyber threats have become an increasing concern in all professional fields, and real estate is certainly not immune.  At Quarem, customers demand a safe and secure interface as well as a guarantee that their information is protected on our state-of-the-art servers.  And it’s not just customers who want reassurances.  Regulatory authorities are also getting into the information security game, making this one a trend to watch in coming years.

The Millennial Influence

Millennials seem to make an easy fall guy when it comes to changes in politics, culture or economics.  When it comes to CRE portfolios this generation of growing market and buying power is certainly one of the top trends of 2016 and beyond.  Millennials are increasingly looking to live where they work, making walkability a desirable factor for retail and other establishments that cater to the younger demographic.  In addition, the work space is just as important as the location, making floor plans that cater toward a collaborative and tech friendly workspace hot sellers.

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About the author 

Guy Gray

Guy Gray serves as Chief Operating Officer overseeing our technology and client services teams. He is responsible for guiding Quarem application development, networking and security, as well as new client implementations.

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