Over the last few years, I’ve had the privilege of traveling to cities across the U.S. with the Primrose Real Estate Team. It’s fascinating to see the growth of new urban real estate trends — specifically in the commercial sector. We’re seeing the next generation of parents seek out a modern, walkable lifestyle, and developers are ramping up plans to meet this demand with new angles on “mixed-use” across the country.
This is an exciting time for development. Everyone in the industry is keeping their finger on the pulse of real estate market forecasts to meet the specific needs of these budding communities. Following its 2018 Fall Meeting, the Urban Land Institute (ULI) released Emerging Trends in Real Estate® 2019, giving us a detailed look into what the future holds.
Here are a few key takeaways:
1. Work/life integration is the new work/life balance.
Today’s young workforce isn’t concerned with fostering a balance between their work and personal lives — they’re focused on integrating the two as seamlessly as possible. For this group, consolidation is key, which means living, working and playing in the same place is no longer a novelty, it’s an expectation. As mixed used spaces trend upward, urban real estate professionals may wish to diversify their tenant roster with the end user’s day-to-day lifestyle in mind.
2. Service-based office building amenities are more popular than ever.
Office tenants are demanding greater access to essential services, even in traditional office buildings. Thismeans tenants who double as building amenities like fitness centers, health services and child care are on the rise. If these services aren’t available in their building, workers are forced to locate other options — perhaps further away or in the opposite direction from home. Plus, it can be incredibly challenging for families to find high-quality child care within walking distance of work. We’ve been able to help address this need with successful Primrose schools in buildings like Atlanta’s Colony Square, Houston’s Galleria and Philadelphia’s City Center.
3. Retail isn’t dead — at least, retail space isn’t.
While many brick-and-mortar retail establishments are struggling due to the rise of e-commerce, opportunistic developers are repurposing these spaces to breathe new life into urban buildings. Often available at low prices, former retail storefronts are being reinvented as spaces for in-demand services, including urgent-care medical facilities, financial services, restaurants, entertainment venues and child care services. These tech-resistant services are the natural successors for retail stores, as skyrocketing demand collides with a wealth of available space. This real estate trend will continue to grow over the next several years as brick and mortar becomes experiential.
Commercial real estate in urban markets is changing, and creating the right tenant mix is more crucial than ever. Real estate professionals will need to attract the right combination of services and amenities that align with the trends of today (and tomorrow) to ensure a successful development. To learn more about Primrose Schools and how we add value as a tenant, visit PrimroseSchoolsRealEstate.com.