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Compact Urban Living An Emerging Trend in Commercial Real Estate
With the advent and normalising of a flexible work culture and continued urbanisation, commercial real estate investors are more and more realising the need to adapt to the changing environment. Increasing numbers of people are opting to live in city centres and inner suburbs, thanks to rising urbanisation. People now prefer to live, work and play in close proximity, and wish to minimise their commutes as far as possible.
Central location, therefore, is likely to be a key recruitment tool to staff recruitment and for businesses. Many industry insiders believe the commercial and residential mix of the future will be like what we’re seeing develop on Rosebank’s main arterials and its pedestrian-friendly suburbs, as well as along the Atlantic Seaboard. Until now, there has hardly been any example of seeing office and residential accommodation alongside each other in the same building.
What we are indeed seeing is cafés, convenience stores and restaurants on the ground floor, with serviced apartments and suites on the floors above. This seems to be following a global trend, as data and technology services improve, people are searching for more experiences. Compact and less hassle urban living in these cosmopolitan hubs are increasing, and in time prices will increase, overflowing into neighbouring areas.
Expect To See More Commercial-Industrial Mixed Developments
With the rise of e-commerce, quicker delivery and on-demand information access and manufacturing, there is a direct impact and influence on industrial property needs. Smaller and more flexible spaces in the right position are needed to enable increased efficiency and effectiveness for free and faster deliveries. This achieves the highly coveted enhanced customer experience, further blurring lines between these two property types.
The industrial-office combination is already taking place to a small degree in light industrial parks, and in industrial areas. These suit smaller companies and entrepreneurial style operations where the office component occupies between 2%% and 35% of the building. The rest of the property is modern and clean warehousing for product storage, vehicle safe keeping or logistics. Freelance, flexible work-sharing and start-ups reinforce the need for shared office space with low-risk commitment and many collaborative benefits, reinforcing the need for these types of properties.
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