It’s clear that technological innovation has affected many things and the commercial real estate market is no different. From real estate, workspaces, retail shopping and distribution centres, offices and more.
The digital disruption in the commercial real estate market is here. Traditional infrastructure and resources are being reorganised to better compete with e-commerce. With an increasing amount of work and consumer purchases being performed from anywhere on mobile devices that have internet access like in the retail industry change is taking place.
This includes both traditional store and online channels. Consumers are investigating and learning all there’s to know about the product well before going into a physical location if they ever do.
Also the outcome of this is that square footage demand for retail space decreases due to shifts in consumer behaviour. As well as buying patterns and efficiencies of the physical store and online channels.
Many large retailers are making moves from bricks and mortar to online. This is a change that has been seen more of overseas in the United States than in South Africa (SA) as online shopping in SA is steadily gaining popularity.
Technology can erode barriers between tenants and property owners too through cloud computing and social media. Providing cost-effective ways to obtain property information and allow the digitisation of transactions.
To employees transforming the way they do their jobs. In the office the traditional office environments have been places where employees go to perform their jobs Monday through Friday on a 9-5 work schedule. They’re being gradually replaced with the integration of technology, mobile devices and infrastructure empowering workers to work virtually anywhere.