Vision 2020: Navigating Future Trends, Next Decade Opportunities
Skanska USA Commercial Development’s Dr. Joshua Harris talked micro-urbanism, tech trends, the idea of space as a service and more during the CREW Network Convention here Thursday afternoon.
ORLANDO, FL—Skanska USA Commercial Development’s Dr. Joshua Harris presented his view of the current state of the economy and commercial real estate markets and discussed the top trends and opportunities that are likely to impact the 2020s Thursday afternoon at the CREW Network Convention here in Orlando, FL.
“The reason why CRE is valuable is because it is a current and consistent income…Even more so when interest rates are low.” So said Harris, who pointed out that currently, prime locations are still commanding prime values and rents. “People always need a place to live (and work, shop, play etc.),” he said. And real estate is unique in that each property is a literal monopoly at its address, he added. “Very few things have that ability.”
In the short term, Harris addressed the question of whether or not a recession is near, noting that while there are some things that might suggest that such as the yield curve or trade wars that are rattling the business community, overall, the US looks really stable on relative basis.
“Recessions are ultimately physiological. Consumers are about as healthy and confident as you can expect… They are financially healthy.”
He also pointed out that GDP has been doing pretty good but is slowing down, but that the shining star is employment, which has been consistently strong and is still growing.
In looking more long term, be said that the 2020s will be a decade defined by technology integration and adoption but warned that while tech adoption might change your particular industry, it won’t make you richer just because you do it.
He did mention a few tech trends to follow including building information systems and smart buildings, which are becoming more mandatory than simply just being an option. “If it hasn’t hit you yet, it will. What people aren’t talking about enough is space optimization tech. What would happen if WeWork meets Uber. The idea that we only pay for space that we need using tech to help us utilize real estate space will be huge. I think we will see more disruption in 2020s due to tech than in the past two decades.”
Other market trends he pointed to watch out for in the next decade is space as a service, noting that people want more flexibility and they will pay for us. Fortune 500s as well as start-ups will demand it, he added. Those who will succeed in the space, he said, are the landlords who embrace it and can capture higher rents because of it.
Co-living being the new co-working will also be a thing we can expect, he said. Landlords in this space can also profit from dynamic space utilization, he explained.
He also touched on micro-urbanism with more small and medium market outperforming larger ones as well as micro-manufacturing and small scale distribution being a trend to watch.
Keep checking back with GlobeSt.com in the coming days for more from the CREW Network Convention and read the stories below that you might have missed.
Well Buildings Are Key to Employee Satisfaction
How Cutting Edge Research and Material Manipulation Will Impact CRE
Has the US Has Lost its Allure for Foreign Investors/?