Recent Innovations in Commercial Real Estate Development
Find out how developments in BAS systems, sustainability, and are impacting the industry
As the world changes, so do the demands for commercial real estate. As technology advances and people return to work after the 2020 COVID-19 pandemic, the requirements for real estate have changed. To stay competitive and develop cutting-edge properties, development companies need to incorporate several new concepts into their buildings.
Today, we’re examining some of the many ways our culture has changed commercial real estate and how developers can meet these demands. We’ll be discussing the advantages of using building automation systems for property management, how COVID-19 has impacted how we interact with commercial spaces, and how new builds can prioritize sustainability. If you are interested in learning more about the most recent innovations in commercial real estate, keep reading!
Advancements in Building Automation Technology
Businesses save money when all building systems are automated.
In just the past few years, building automation technology has become more widely adopted as tenants search for ways to optimize their space. For developers, this means that you not only have to stay up to date with current technologies—you need to be constantly looking toward the future.
BAS systems are designed to manage different operating systems in a building simultaneously and from a single point of control. Before buildings relied on BAS systems, each system functioned independently and without any data reporting. Now that more and more commercial properties are adopting automation, building managers can view and control HVAC, plumbing, lighting, security and more all using a BAS. While some may be hesitant to have their property rely on automation, new builds must be designed to work with a BAS. If developers do not consider automation, they will likely be passed up in favor of a more technologically advanced property.
The benefits of automation are massive and stand to save companies money both on operating and labor costs. With a streamlined and automated system, building management becomes much easier and requires fewer staff members to constantly monitor each system. Using sensors installed at different locations in the building, a BAS system can immediately predict and report any issues that may need maintenance. Because the BAS can predict potential breakdowns, building managers can address the problem before it can get worse. Thanks to the robust reporting capabilities of automation systems, companies can be proactive when it comes to repairs and prevent costly system shutdowns.
Greater Emphasis on Sustainability
Many businesses are searching for ways to decrease energy consumption and emissions.
Humans are currently dealing with the increased temperatures and destructive weather patterns caused by climate change, there is more of a focus on corporate sustainability than ever before. When it comes to property development, prospective tenants will be searching for spaces that prioritize sustainability and energy conservation. Many companies have launched very aggressive sustainability goals recently, and to reach them they will need to choose a property that can conserve energy and limit harmful emissions. Since most businesses are currently striving toward better sustainability practices, the more features you can include in a building, the better. Let’s take a look at a few key features that companies are looking for in a sustainable commercial property:
Adaptive lighting
Automated security
Efficient waste management
Solar power
Energy conserving HVAC systems like mini-splits
Minimal water usage
Reduced CO2 emissions
In most cases, environmental sustainability also leads to major savings on energy costs. If your property is conserving energy by limiting lighting levels, businesses will end up paying less in total energy costs. This is a great selling point for tenants who are searching for a property that can operate efficiently and circumvent rising energy costs.
It is currently unlikely that energy costs will stop rising any time soon, so if you are not prioritizing sustainable energy practices in your developments, you will likely have a more difficult time finding tenants to fill commercial properties.
Additionally, state requirements for sustainable properties will likely increase in the coming years, and it is much better to be prepared than behind the curve when it comes to sustainable tech applications.Spaces Engineered for Hybrid Working Environments
Since more businesses are adopting hybrid working models, commercial architecture needs to workplace demands
The way we work has changed more in the last few years than ever before.
Since the beginning of 2020, the way that we work has changed drastically. More people than ever before are working from home and businesses are moving to a hybrid work model. Because of this, the list of needs that businesses require from commercial spaces has changed as well. Previously, open-concept workspaces were the dominating trend for offices. However, because of the popularity of video calls, the open-concept space is no longer appealing to businesses looking for office space. Some who are returning to the office may also have lingering COVID-related concerns and will want to have their own office space as opposed to a large communal office space.
The pandemic has also changed where these developments are being built. Throughout 2020, many people fled busy cities in favor of more suburban or rural communities. Because more professionals are working in less populated areas, the demand for office space in these communities has risen. For this reason, developments in suburban or rural areas will be more enticing to prospective corporate tenants than developments in highly populated cities.
A Shift Toward Multipurpose Developments
Developers need to diversify how their spaces can be used to entice a wide variety of prospective tenants
Developers should feature both traditional office spaces and coworking spaces for new buildings.
Another product of our changing working environments is the need for multipurpose spaces. Now that fewer people are working in corporate offices, coworking spaces have become far more popular. To appeal to as many different types of tenants as possible, new developments should cater to the needs of the 2022 workforce. That means that buildings that previously housed office space exclusively will now need to include office space, coworking space, retail, a gym, and other features that will entice people to come to the property to work.
These buildings must be designed with the inhabitants in mind. What are their motivations? How will the modern worker interact with the building and what will entice them to work from your development, rather than their home? While there is not one single answer as to what will attract tenants, real estate developers need to understand their customer profile and design spaces that are catered to that profile.
Prioritizing Natural Light Over Artificial Light
Buildings that use natural light sources are more inviting than buildings that feel closed off from the outside world
The more daylight you can feature in your property, the more appealing your property will be to tenants.
People who are returning to the office for the first time in a long time will likely have higher expectations for their workspace. People who were previously content working in an office or a store with minimal natural light will be less likely to return to an uninspiring—and in some cases—unhealthy working environment. Working in a building with little natural light or harsh fluorescent lighting can lead to eye strain, headaches, and fatigue among employees. That is why it is so important for developers to consider how natural light will affect the architecture of the building. Studies have shown that employee satisfaction rises with more natural lighting and that lighting costs decrease as buildings rely less on artificial lighting during the day.
Natural lighting is also the best option for retail-focused developments for many of the same reasons. Sunlight makes it easier for employees to work without fatigue while also showcasing products in the best light possible and creating an inviting space for customers. Overall, natural lighting is preferable to artificial lighting in almost every case when it comes to commercial developments. That’s why developers need to design buildings that allow for as much natural light as possible.
And there you have it, the current commercial real estate innovations that developers will be implementing in the coming years—if they haven’t started already. Using strategies like building automation and sustainable practices, developers will be able to entice tenants while also decreasing emissions and energy costs. The future of the commercial property is looking green, automated, and naturally bright.
