As we look back just a decade, the public has changed the way they live, work, and shop. Innovations in technology have paved the way to facilitate many of these transformations. Now it’s up to the real estate sector to catch up and support this tremendous shift. Whether you’re in development, construction, or sales, the dreamers and innovators have made their way to your corner. Those who take the initiative to factor in those innovations are the ones destined to set themselves apart from the competition.
PWC is expecting a stronger shift than initially anticipated for 2020 in the type of real estate demands. Retail and office buildings have seen a significant change in the market as needs are drastically changing in those sectors. New requirements are coming from the residential sector for increased technology and sustainability advances. Consumers (72%) and business buyers (89%) expect companies to understand and deliver to their specific needs and expectations.
The Amazon phenomenon revolutionized the way that people shop, and many factors of the retail population are forced to shift their sales models with this new direction. The NMHC Have we got your wheels turning in your head yet? 2018 Consumer Housing Insights Survey reports that nearly two-thirds of those surveyed agree that their hectic lives require them to seek out ways to make things easier. As customers embrace on-demand delivery of their purchases, more attention is focused on lifestyle in communities. It is estimated that 24%of all retail sales will be online by 2025.
Some retail stores focusing on music, books, and videos will soon be obsolete. Health and beauty sectors and homeware should remain resilient in 2020. Multi-unit shopping centers will be able to thrive if they include restaurants and entertainment venues intertwined with retail stores.
As e-commerce drives new requirements, builders and investors must consider ideas and opportunities to repurpose space as it falls out of favor of retail. Online shopping with short delivery times is creating an increased need for warehouse space and distribution centers.
Technology and innovation have changed where and how we work. Remote work is still in its infancy and taking a fast stronghold and is likely to continue growing substantially in the coming years.
The changes in work culture create an increasing need for the residential infrastructure to be able to support their needs. Multi-family residential projects will have to take these factors into account with design and planning.
Beyond the fact that 90% of Americans will be connected by smartphones by 2023, additional demands in technology are raising expectations in real estate. Technology continues to advance while prices are decreasing for innovations such as smart appliances, smart meters, smart building management systems, and energy management. NHMC’s Disruption Report examines how technological advances affet housing and what that means for apartments of the future .
Even real estate managers have enhanced operations for remote day-to-day activities and data relating to tenants, buildings, and other tasks. As we move to 2020 and beyond, it is critical to have an understanding of the effects of technology in this sector.
There are several trends that are game-changers for designers, developers, and managers. To stand out ahead of the curve, maintain a nimble operation to embrace these new ideas. Fourtrends being observed by Plug and Play’s Real Estate Construction are:
This construction process enhances streamlining and increased efficiency by manufacturing several pieces of a building in factories or offsite locations. The result of a controlled construction environment is fewer weather delays and reduced cost over the construction project.
Robotics alleviate the shortage of workforce resources by taking over site tasks such as moving or managing materials. Optimized efficiency and reduction in workplace injuries are direct benefits of this augmentation.
The concept of software testing has made its way to construction. As a building is constructed in real-time, artificial intelligence (AI) and computer vision are matching the original design to the structure. This technology ensures that the building and design match and immediate action can remedy any discrepancies as soon as they are identified. This is a more cost-effective solution early in the process.
Smart technology doesn’t stop at appliances. Smart sensors are placed to analyze how space is being utilized. These sensors help the building systems such as lighting and HVAC operate efficiently. Smart buildings are built with smart sensors to be more spatially aware.
AKULAR is one innovator of the most disruptive technologies in urban and real estate development since 3D modeling. With the use of augmented reality (AR), users are enjoying accelerated processes around design and sales.
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Technology continues to drive our economy and continues to revolutionize how we live and work. Builders and designers will need to remain flexible and proactive.Thinking innovatively to keep up and align with new trends as they continue evolving is key to staying relevant and successful in 2020 and beyond.