AU & NZ: 4 Commercial Property Management Trends In 2018
The commercial real estate market has been experiencing firm growth (both financially and operationally) over the last several years and it doesn’t look like there will be a falloff – plenty of trends for the year ahead are steadily surfacing.
Things like technological advancements, sustainable and agile thinking, and further overseas investment will be the driving force for a positive 2018 for commercial property management.
Here are four commercial property management trends we can expect to see in 2018 for the Australia and New Zealand regions.
Better workspace experiences
As the workforce’s decision maker segment continues to trend toward the millennial demographic, their expectations around more modern workspaces remains present, which will prompt commercial real estate developers to shift their thinking and design more open spaces that facilitate collaboration among occupiers.
The desire to occupy these types of building environments will continue to peak the interests of startups and modern businesses, particularly those with a technology and software offering.
For these tenants, they’re after workspaces that are turn-key, on-brand and will assist with growth.
A focus on sustainable development
With the rise in environmental consciousness among property investors, tenants, employees and society-at-large, we can expect to see a lot more green developments.
According to a 2017 report by Principal Global, investors believe that sound sustainability performance is largely representative of robust investment, while raising the awareness around how to propel further commercial real estate growth moving forward.
While it is inherently expensive, sustainable development will prove to yield profitable returns for the commercial property management industry in 2018.
Steady overseas investment and economic growth
South Australian agents have said that investors are strategically pinpointing commercial real estate hot spots as a major 2018 target, according to reports, which follows a positive net absorption year for the southern state of Australia.
The hot streak is a positive sign for Adelaide’s commercial property market moving forward.
But this is true nationwide, really. Australia is still the thirteenth strongest economy in the world and hasn’t seen any true fiscal downfall in twenty-six years.
This is a key barometer for overseas investors that makes continued investment in Australian commercial property a must-do.
Further east, top New Zealand real estate leaders are optimistic about the year ahead, citing a high level of rental income as a key contributor to capital growth.
Industry thought leaders have noted that there is a widespread expectation that offshore investment will continue to ramp up.
For Australian and New Zealand commercial property management, it’s positive news all around.
A committed shift to embrace technology
Automation will surface a lot of opportunity for commercial property companies in 2018.
As a historically late adopter of technology, the real estate industry has some catching up to do in the year ahead.
Many agencies still rely on spreadsheets or outdated software to store and analyse data, which has a significant impact on employee productivity and the scalability of their portfolios.
In many other disciplines, technology adoption has helped to speed up repetitive processes, eliminate human error and increase efficiencies, which has helped businesses grow at a rapid pace.
This will be no different for commercial real estate businesses moving forward, and the mindset change will manifest itself in 2018, as big players will look to adopt property management software to differentiate their services from the competitive landscape.
Customer experience (CX) and user experience (UX) have never been more important: we will likely start to see commercial property management companies focus on building strong relationships with tenants through the adoption of technology that – put simply – makes life easier for everybody.
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