Real estate in Houston, Texas, is growing increasingly popular. Since the pandemic, Costa Bajjali has noticed significant changes in the industry itself. Costa Bajjali has worked with commercial real estate for almost 20 years and has noticed specific emerging trends. By blending innovative technology with classic techniques, the commercial real estate industry is a new business.
What Counts As Commercial Real Estate?
Commercial real estate refers to property that is designated for business-related purposes. Commercial real estate is not a living space, but it can include apartments.
Large-scale apartment complexes are considered commercial real estate because space is rented to others for income. The owner of an apartment complex uses these living spaces for business purposes of their own.
The construction of commercial real estate varies from residential housing. Commercial buildings generally include more complex requirements that need materials other than timber. This can consist of steel frames and other resilient materials used for the structure. Popular commercial real estate includes large-scale apartment buildings, student housing, senior independent living, retail spaces or shops, storage units, and industrial warehouses.
Warehousing Trends
Due to the increase in online shopping, warehouse workers are in high demand. Warehouses meant for online businesses stock physical goods that will take up a significant amount of space. Warehouses require the right land, at the right location, and safety measures to function properly.
The labor market is currently competitive not just in Texas but throughout the United States. Costa Bajjali believes warehouse amenities in commercial real estate may attract more workers. Air conditioning should be a standard amenity, but other enhancing technology can also help. Purified hydration filtration systems, natural lighting, community spaces, and private relaxation rooms are now seriously considered by property owners.
Increasing work safety will help employers avoid potential legal issues as well as workers. A safe work environment is also more likely to retain employees. Amenities designed for worker satisfaction, such as private break rooms, are also used to keep employees motivated and happy. Since industrial properties help sustain the economy, many investors are now examining warehouses.
Popular Locations
Retail real estate has declined since the pandemic. Since the emphasis on distance and safety, online shops have boomed in business. If this trend continues, there will be less demand for brick-and-mortar retail shops and more focus on distribution centers.
Distribution centers focus on a few key factors. The location of a distribution center is very important for commerce. Commercial real estate that is close to urban areas is highly coveted. Large centers with ample parking are also a priority for employees. Finding a space that is close to where employees live is beneficial for the labor market. Expansive buildings can provide areas for training in addition to ample storage room.
Ergonomics In The Workplace
Certain commercial real estate properties will offer a furnished space for future tenants. This is especially beneficial in office or apartment buildings with separate rooms designated for multiple employees.
Well-designed chairs are a growing trend in offices. Chairs that are designed to fit the body can reduce lower back pain and fatigue. Ergonomic chairs have more adjustable features than regular office chairs and can be shaped to suit the individual.
Proper lighting is another key function in commercial real estate. For apartment complexes, lighting consists of a softer hue and may be used more frequently. If the lighting is too bright, it can cause headaches or even emotional discomfort. Artificial lighting in offices is another consideration. Natural light sources are beneficial for employees as well as tenants.
Commercial Real Estate Goes Green
The “green” trend is growing in all industries, including commercial real estate. To reduce the carbon footprint, supply chains and apartment complexes are implementing new developments.
Solar power is becoming less expensive to generate. A passive solar building design uses the sun to help a building generate heating, cooling, and lighting. Passive solar designs are not the same as solar panels, and they do not require an extensive installation process.
Another sun-related construction trend includes electrochromic glass. This type of glass uses electricity to change the amount of light distributed from opaque to translucent. This type of technology can be manually controlled or automatically programmed. This form of environmentally-friendly construction allows building owners to reduce costs associated with the HVAC system.
Leadership in Energy and Environmental Design (LEED) and Green Building Initiative (GBI) are just two examples of standards and certification programs to improve efficiency and sustainability of buildings.
The Future Migration
According to Costa Bajjali, the real estate industry is transitioning in different ways. Since the pandemic, workspace priorities have changed.
An increasing number of companies are looking to relocate. While the heavily populated metropolitan areas were once prime real estate investments, many employers and employees want to leave the city.
Not only are highly-populated cities considered risky, but the structure and design of many commercial office buildings do not have enough space. Open larger collaborative space is a trending commodity in this climate. Larger offices, larger buildings, and spacious outdoor areas are considered beneficial for physical and mental health. Advanced technology is now coupled with the change in a desirable location.
Prioritizing a commercial building that incorporates safe distancing is a growing practice. Companies once located in smaller office buildings with shared space can make many employees uncomfortable and concerned for their health. Real estate in smaller cities and rural locations is now extremely popular.
Commercial Real Estate Predictions
The industrial real estate market is predicted to succeed. Since shopping habits have changed, retail stores and vacancies have created new opportunities. Industrial real estate such as warehouses and distribution centers are on the rise. This trend will likely continue as the business world shifts into place.