ORANGE COUNTY, CA—As Millennials enter the field and Baby Boomers exit, there has been a natural shift in methods of operations in the commercial real estate industry. In Part 1 of a two-part story, GlobeSt.com spoke with industry experts Lanie Rea, director of research for Stan Johnson Co.; John Combs, principal at RiverRock Real Estate Group; Michael McLean, portfolio manager for PM Realty Group; Chris Pesek, director of integrated facilities management for Jones Lang LaSalle; and David Endelman, managing director for Savills Studley's strategic portfolio solutions team, about how commercial real estate is adjusting, and where they see it heading. Part 2 will appear at a later date.

GlobeSt.com: How is the industry changing as younger, more tech-savvy Millennials enter the field and the Baby Boomers begin to exit it?

Rea: It goes without saying that today's professional setting is mobile. We work in a 24/7 environment that is no longer bound by outdated technology, restrictions on travel or show methods or communication. Ideas are shared in an instant, and information overload has become a way of life. The way business is conducted and the way people form relationships now mirror this shift in culture. Some may fear the loss of personal connection as the older generations exit from the workforce. Others may only see the benefits of faster decision-making processes once the Millennials find themselves more and more in leadership positions. Regardless, the business world is always changing, and professionals ultimately have no choice but to adapt.

Business doesn't happen the way it did when our grandparents were in charge, and it's quickly evolving into an environment that no longer looks like our parents' world either. There will also come a day when the Millennials are viewed as the “old guard,” and we will need to embrace the changes that come with the next generations. Almost assuredly, though, technology will continue to shape how business is conducted, but we must not lose sight of the tried-and-true methods that got us here. Face-to-face meetings, instead of email or social-media communications, should never be discarded. A handwritten thank-you note will always be appreciated. And dedicated, hard-working professionals, regardless of what generation they come from, will continue to shape our industry for the better.

Combs: Many organizations have young-professionals committees that help to foster technology integration in the commercial real estate industry. With BOMA's Young Professionals Group, they share ideas with tenants and vendors using technology, apps and file sharing that embraces a new way of doing business in a more efficient way. With their fresh ideas and the mentorship of experienced professionals, these young professionals will e emerging leads in the firms sooner than the Baby Boomer realizes.

At RiverRock Real Estate Group, we put our young professionals in charge of introducing technology to our emergency-response plan. During the last event (an earthquake centered in Napa, CA), there were reverse notification calls to the managers where we used technology to track people and properties and any issues. It was a much more efficient way to respond.

McLean: There is a strong desire by most Millennials to live, work and play in the urban core. Renting seems to take precedence over buying. Being close to amenities and public transportation is changing the way developers and landlords design buildings and where they are located. It will be interesting to see how technology affects commercial real estate. Densification (180 square feet per employee vs. 250 square feet per employee) creates challenges for older buildings that were not designed to provide HVAC, electricity, etc., for that many people.

Pesek: Interestingly, Millennials' skill sets are proving well aligned with senior management goals, which are trending toward more data-driven and environmentally sustainable and less hierarchical than ever before. With 70% of Millennials interested in using cutting-edge technology, they have both the skills and the desire to leverage virtual collaboration, and facility-management systems that integrate data and analytics to enhance capital planning, financial efficiency and organizational performance.

Endelman: I am definitely seeing increased adoption of sophisticated data analytics into the CRE decision-making process. Tools long ag embraced by other industries and business functions are now considered by the world's leading real estate departments as critical to their process. While some old guard may be biased toward more touch and feel or gut projections of supply/demand, professionals at Savills Studley and elsewhere—both young and old—are adding data-analytics experts to their sales and execution teams.

Stay tuned to GlobeSt.com for Part 2 of this analysis.