Industrial And Commercial Real Estate Rentals Prioritize Different Factors While Choosing Property
27 Mar, 2020
forindustrial real estate rentals, location, innovation and efficiency plays a major role while purchasing property. commercial real estate (cre) leaders, on the other hand, focus on tenant experience as their top priority.feasible locations with high growth areas, latest innovative technology and facilities, and efficiency of the properties generates more demand in industrial real estate. properties closer to the population hub are in more demand because this can help tenants accelerate last-mile deliveries due to the reduced distance and transport cost. technology adoption by industrial real estate owners is gaining popularity because tenants are looking for more technologically advanced facilities. for instance, e-commerce companies, such as amazon, are incurring high investments in robotics and automation to reduce labor costs. therefore, tenants are looking to have smaller spaces spread across key customer markets, instead of having few large spaces serving many markets. so, many warehouse owners are providing seamless connectivity from within and outside their facilities, and making spaces conducive to robot movement. further, to make the industrial real estate more efficient, warehouse owners should consider improving designs and structures to enable more efficient storage so that business inventories can be stored, even as demand increases. for instance, owners can add higher ceilings or multilevel facilities for dense and more efficient storage, and more cross-docks. similarly, there is potential to improve connectivity with energy grids to provide more reliable power and invest in renewable energy sources, such as rooftop solar power.
the global real estate rental market is expected to grow from $3,027.5billion in 2019 to $4,413.6 billion in 2022 at a compound annual growth rate (cagr) of 13.3%.
according to a 2020 cre outlook survey, tenant experience is a top priority for most cre leaders. about 64% of cre executives said they increased their tenant experience related to technology investments over the past 2 years. however, only 46% of cre executives consider it as a core competency for their organizations. a significantly lower proportion of the uk (26%) and netherlands’ (17%) respondents considered tenant experience a core competency.
in addition to that, respondents said that iot technology and mobile apps are important elements in enhancing tenant experience. more than 50% of respondents believe that environmental and security technology investments will improve tenant experience. around 58% of respondents were of the opinion that provision of smart facilities such as controlling lighting or room temperature, enhance tenant experience. about 55% of respondents said tenant experience can be enhanced by providing safety and guidance across the property, such as 24/7 online support services. 49% of respondents felt that interactive mobile apps to access building services or to navigate the property can improve tenant experience. cre leaders were also of the opinion that most of the tenants seek these kinds of features in smart or iot-enabled buildings.