Hooman Nissani: Commercial Real Estate Trends To Look For in 2020

It seemed that a property’s location was something so important that nothing else mattered. That was never completely true, and since around 2010 it certainly has not been true.

The realm of commercial real estate in an ever evolving one, and it continues to be, year over year. Here are a few commercial real estate trends you ought to be looking out for in 2020.

Globalization Will Continue to Decelerate

Most commenters thought it inevitable – that the easy connectivity of the internet would march the world towards a globalized economy. However, since 2016 that march seems to have halted and in many cases, reversed, mainly through a fear of national identities being lost.

The resurgence of populism has encouraged people to think more about buying from local providers in terms of goods and services, creating an increased need for regional businesses in multiple sectors. Companies that were floundering as they couldn’t match the prices offered by their larger international rivals are suddenly flourishing again.

This trend has encouraged businesses to ‘think locally’ too, increasing the opportunities for local trade and stimulating local economies. This should also stimulate the need for manufacturing facilities, and logistical hubs that integrate better than simply ‘efficiently’. This focus on ‘local’ should also boost the retail sector, which is something that it sorely needs.

The Sector Will Rise to the Challenge of the Climate Emergency

While some people remain resistant, more and more people are getting onboard with the idea that the planet is fast approaching a climate emergency. Whether climate changes are part of a natural cycle or are manmade is not the point – the point is that the number of incidences of extreme weather events has climbed year over year continuously since the 1950s, and humankind needs to adapt.

Therefore, commercial real estate developments will become increasingly environmentally friendly. The attractiveness of developments close to airports will diminish as (a) we accept a need to fly less and (b) we accept that online communication is a much better strategy.

People will still need places to work, though, and companies will need facilities in which to operate. Expect ‘greener’ construction considerations to become increasingly important.

Office Flexibility Will Continue to be a Hot Commercial Real Estate Trend

Bosses are finally coming to terms with the idea that office flexibility will soon become the new norm when it comes to managing a workforce’s needs. Technology is increasingly driving business, meaning that remote working has never been easier. Employers are losing their ‘distrust’ of working from home as sophisticated tracking and time management apps can tell how much time remote workers are spending being where they actually need to be.

Remote workers do not need office space and desks, all day, every day, and there is no need for employers to provide desks that are going to sit vacant 80 percent of the time. In addition, why have a meeting room when meetings can be held virtually, with each employee connecting via a video chat app such as Skype or Zoom?

As a result, commercial real estate properties that allow for flexible office space use will be increasingly sought after. The concept of a single company owning, renting or leasing a complete building should begin to diminish too, as to share costs a company can share commercial space with other companies. That’s far better than owning a building that’s usually three quarters vacant.

If you would like to know more about current commercial real estate trends, then please contact Hoosani Nissani of Nissani Brothers Enterprises. Contact Mr. Nissani using this online contact form.

Read more about our other projects and successes:

https://therealdeal.com/la/2016/06/16/hooman-nissani-buys-8-5-acres-in-playa-vista-for-83m-plans-massive-mixed-use-project/
https://therealdeal.com/la/2017/11/30/hooman-nissani-drops-24m-on-playa-vista-property-next-to-planned-site-of-his-massive-mixed-use-project/
https://www.autonews.com/awards/2012-40u40-hooman-nissani