WHAT IS THE NEW REAL?
Commercial real estate is set for a period of sustained disruption caused largely by technological innovation and we have undertaken some research to understand the opportunities that this brings for anyone with an interest in the sector. The changing economics of the sector are significant and the opportunities they present are multifaceted. New legal, regulatory and business frameworks will need to be considered and devised.
Our research has explored these issues by drawing on the minds of leaders across the worlds of technology and real estate. These include owners, occupiers, service providers, developers, contractors, investors, funders – as well as our lawyers. We have identified 10 key trends they believe we will face in this new reality and share our thoughts on where the key legal pressure points are as well as the strategic business issues.
Collectively the trends represent a call-to-action to ensure you future-proof your assets in line with these changes and take advantage of the gains to be made. We share these initial findings of our research in an executive summary as an introduction to a full report to be published in in the autumn. You can find this on our website at www.charlesrussellspeechlys.com/thenewreal.
WHAT ARE THE NEW TRENDS FOR GROWTH IN THE SMART ERA?
We have identified 10 key trends:
- Future-proofing your building means in-built flexibility
- Smart buildings are driving gains stretching far beyond sustainability
- Plugging into connected ecosystems opens new revenue streams
- Occupiers will push owners to rethink commercial lease terms for the future of work
- The construction industry will need to achieve hyper-efficiency, not necessarily hyper-speed to secure returns
- The largest occupiers will rebalance the mix of core and flexible space
- Forward-thinking investors, owners and occupiers will change how they value commercial property to seize smart gains
- Smart gains will need to be realised through new partnerships and new networks
- The move towards smart buildings and the Internet of Things (IoT) is opening a Pandora’s box of legal risks around cyber security and data protection that must be addressed
- Winning the battle against obsolescence of buildings will be pivotal in securing returns.
A GLANCE AT HOW IT MIGHT AFFECT YOU
It means different things to different people depending upon your interests in commercial real estate. Here are a few examples for those stakeholders we have considered:
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