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  • How Technology Trends Are Impacting Commercial Real Estate?
December 8, 2019

How Technology Trends Are Impacting Commercial Real Estate?

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Technology-CRE

(Innovative technology advances transforming the commercial real estate industry.)

Rapid advances in technology are moving forward these days, which are disrupting many of the sectors and the Real estate industry is no exception. Digital disruption is all-pervasive, with technology integrated into professional lives, changing the level of technology challenges that organizations are facing at present.  The commercial real estate is the sector that is feeling the intense impact of the digital transformation that has been taking place over the past few years. The real estate industry has traditionally lagged behind other sectors due to the changing trend of technology.

What are the implications for real estate?

Investors who are occupying real estate for different purposes that whether it’s an office, retail, industrial, institutional or residential have the opportunity to use a real estate as a lease property acquisition to make changes within their organization. This opportunity is available for both private and public sector organizations that can re-think how and where they operate their real estate and business.

The challenges facing by the real estate industry derives from the fact that buildings are fixed and difficult to quickly or cost-effectively change in order to embrace technological advancements. A Harvard Business Review article noted that “the more difficult the barrier, or the more barriers a disrupted faces, the more likely it is that customers will remain with incumbents.” Many entrepreneurs are not motivated to change and instead remains with the existing condition. The problem with this decision is that these companies are facing tremendous global competition, cost problems and, productivity challenges.

For the past few years when there was a less technology intervention, people used to work remotely. But now modern offices are embracing the trends in telecommunications. However, most of the offices found it not a viable option for them. Due to technology barriers, many of the services produced in today’s economy do not require large teams to be in the same place every day.

Technology-CRE

(Modern offices are embracing the trends of telecommunications for their business.)

Because of the evolving technique of e-commerce giant companies like Amazon and Walmart, retail stores are reorganizing their traditional infrastructure from a decade ago to compete with these companies and make a strong foothold in the market.

Demand for retail space has decreased

Extensive growth in online purchases, consumers are leaning towards ease where they can get the trusted CRE information easily. With the increasing demand of online channels, consumers are investigating and learning about the product themselves rather preferring any retail stores. In major cities like Delhi NCR, Pune, Bangalore, Mumbai and sub-cities like Gurgaon, Noida, Ghaziabad, Navi Mumbai and more have emerged out as the favourite for commercial real estate development as the buyers prefer online sites which have decreased the demand for retail space.

Likewise, disruption in retail marketing has the similar impact in the retail markets of manufacturing. There are a large number of retailers who are making investments in extremely complex technical, fulfilment sites that are ideally located. Customers can now receive commodities that are directly shipped from the warehouse instead of retail stores. This works out great for retailers since the cost per square foot of warehousing space manages to be less expensive than retail space.

Technology-CRE

(Developing tech changes empowering employees with the latest tech infrastructures.)

The integration of technology in the office space

In the workplace, the developing tech changes empowering employees with the latest tech infrastructures. Workers are allowed to work virtually anywhere. The emerging technology creating a healthy work environment, offering employees different opportunities to grow their business operations.

Now, office designers are finding modern ways of incorporating technology into work environments. Companies are looking for innovative office designs to facilitate team meetings. Instead of floors full of cubicles, which often sit abandoned while meeting spaces are overbooked, shared workspaces, meeting spaces, social areas abound – often enabled with video conferencing, smart boards, and other virtual collaboration technologies.

Therefore, technological innovation is affecting many classes of real estate, comprising of workspaces, retail shopping centres, offices, distribution centres. Employees and consumers are transforming the way they do their jobs, purchase goods and services. Now business people operating and managing their business activity from anywhere which is directly or indirectly changing their work culture.

You Should also try reading these:

5 Awesome Workplace Trends That Can Work For You In 2018
7 Essential Steps to Consider for Easy Warehouse Management
Digging Deeper Into The World Of Office Air Conditioning
Important Tips For Evolving A Healthy Work Environment
How To Ensure A Lasting Impression On Your Office Visitors?
Sharing Work Spaces With Furry Creatures: Pet Friendly Offices
Deepak Bhardwaj
Monday, 15 October 2018 / Published in Blog, Commercial Office Space Sohna Road Gurgaon, commercial space, Latest Blog, Real Estate, Technology, Uncategorized

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