April 3, 2019
A new model for success in the face of big data, e-commerce, and the sharing economy is emerging in virtually all sectors of commercial real estate. A special report entitled “Long May You Run – An Essential Commercial Real Estate Tuneup” by CCIM Institute Chief Economist K.C. Conway, in partnership with the Alabama Center for Real Estate at the Univ. of Alabama, details those emerging trends and the impacts they are having.
Conway notes disruptive companies such as Amazon, WeWork, and Airbnb are changing the way we use, analyze, and value property. So, which traditional property measures require rethinking? The short answer: all of them.
Conway says, “As a result of unprecedented advances in data and technology, the tools, devices, techniques, and resources commercial real estate practitioners relied upon decades ago – or even last year – can and have become obsolete. Whether you’ve been in commercial real estate three years or 30, the only way to stay relevant is to leverage these new data sources and technology in your valuations, analyses, and site selection.”
The industry is behind the curve in recognizing and developing the measures, analytical tools, and valuation models needed to underwrite and advise investors in response to the ever-evolving landscape, points out Conway. Today, new metrics and analytical tools are needed by lenders, investors, and property owners alike.
The report touches on reliable data providers, comprehensive “CliffsNotes” to the economy for the industry, adjusting to e-commerce’s impact in both the retail and warehouse sectors, new metrics to consider, logistics infrastructure and site selection, Coworking’s impact, recalibration by local governments to capture economic growth, and the ways blockchain and AI will change the future of commercial real estate.
For comments, questions or concerns, please contact Dennis Kaiser