To meet the rising demand for office space designed to promote productivity, developers and commercial-property owners should be focusing on providing not just space and a great location, but an environment for success. With office designs transforming into more mixed workspaces and the need for innovation, increasingly more firms are looking for curated, configured office spaces that boost productivity. This is one of the key trends for the real estate industry, according to Urban Land Institute’s “2018 Emerging Trends in Real Estate” report, which was conducted in conjunction with PwC. The report was based on interviews with and survey responses from more than 1,600 leading real estate experts, including investors, fund managers, developers, property companies, lenders, brokers, advisers, and consultants.
The report says that developers who focus on market design and efficiency, and tailor their products to ever-evolving workplace trends, such as flexibility, green design, and smart office space, are poised to benefit greatly. Gen Z is also beginning to have an influence on workspaces. Unlike their Millennial counterparts who were all about collaborative, open workspaces, Gen Z appears to want more structure, suggesting a return to offices with doors and more personal office space, cites PwC.
Multi-family housing (habitational risks) will continue to remain strong in 2018 with the need for more affordable rental units for Millennials and Gen Z. And, senior housing tops the list of the most promising residential segments, according to the report, due to the fact that current inventory does not meet the needs of a group projected to grow by 25 million in the next 15 years.
Shopping centers are transforming and will continue to do so in 2018, according to a report by the International Council of Shopping Centers (ICSC). The convergence of physical and digital retailing is an emerging trend, with consumers searching online and buying offline; searching offline and possibly buying online; or buying online and then picking up in the store, cites the ICSC.
Shopping centers are also becoming cultural hubs of their surrounding communities, holding large-scale events to court Millennials.
As these and other trends take shape, RPS is ready to assist you in providing real estate insurance solutions to your clients to protect their properties, assets, people and reputation. We provide a portfolio of products for a total insurance solution.