October 28, 2016
Hightower released a whitepaper about the impact and changes that millennials are having on commercial real estate. Beginning with some facts about millennials and moving into the trends, here’s an overview of the insights shared.
- Millennial (definition): anyone born between 1980 and 2000
- Largest generation in American history
- $200 billion (estimated) in purchasing power
- Will make up about 50% of the working population by 2020
- Urbanization and the Suburban Comeback: The highest percentage of millennials exist in Austin, TX (17.5%), followed by Salt Lake City, UT (16.3%). The population of millennials in various U.S. cities is on the rise, and consequently, major tech companies have flocked to city centers to attract the young and talented workforce. However, millennials are not solely interested in city living. Age is the dominant factor over preference in dictating where the generation is settling. Since millennials are marrying and having kids later in life, compared to previous generations, the necessity to move to the suburbs for a single-family home is being pushed back. Studies show that 75% of millennials still plan to get married. Experts believe it’s the job market pulling millennials into cities.
- Offices to Fit Work Style: Technology is imperative. From the connection to internet to the ability to complete tasks more efficiently and collaboratively with apps like Dropbox and Slack, millennials work differently than the generations before because of the technology that has become available. While collaboration over the Internet of Things is at the top of the list, physical collaborative spaces cannot go unnoticed. Cubicles are a thing of the past – and the rise of co-working spaces and shared offices have confirmed the trend. Flexibility and customization of workplaces is a key to a successful and efficient workforce.
- E-Commerce Rising, Brick-and-Mortar Still Important: Both the retail and industrial sectors are heavily affected by the rise of e-commerce. With the immense purchasing power of this cohort, both e-commerce and brick-and-mortar stores are heavily sought after. 75% of purchases by this group are still in stores, so placemaking and experiences are of utmost importance. For industrial owners, some tips for success are to create tailored e-commerce spaces and choose the right e-commerce tenants and technology to support your business.
For comments, questions or concerns, please contact Daniella Soloway