Commercial Real Estate Trends for 2018
Online Purchases:
Over the last decade, American consumers have continued the shift toward online purchases. According to Census.gov, E-commerce sales, in the first quarter of 2018, accounted for 9.3 percent of total sales The new craze of online shopping leaves the commercial real estate market with new opportunities for more warehouses and distribution centers.
The middle Georgia commercial real estate market has just gained the newest Amazon fulfillment center which has brought with it 500 new job opportunities. The center’s location is near the corner of Sardis Church Road and Skipper Road in Macon, Georgia immediately exiting I-75. While the new trend of online shopping can hurt current retail position, the trend has strengthened the Macon/Middle Georgia warehouse and distribution center market.
Mall Conversions:
In a new era of online shopping, it seems that our traditional indoor malls are being neglected. There seems to be a trend in rehabilitating old retail malls into prosperous mixed-use communities. Developers cannot build or rehabilitate a mixed-use community and expect it to thrive without the right location. Demographics such as population density, income levels, and location desirability are crucial factors in creating a thriving mixed-use community.
Properties with an existing dense population and excellent income are ideal sites to build compact, walkable mixed-use communities. For optimal redevelopment, the neglected mall is in the center of an urbanized area. When a mall is not in this urban center, it is more difficult to justify substantial spending on mixed-use development projects. Successful new multi-use communities take less retail tenants and search for tenants offering service-oriented products. These communities include less retail and more opportunities such as residential sectors, office space, gyms, theatres, restaurants, bars, coffee shops, or beauty salons.
How mass shootings will affect Commercial Real Estate:
Scenarios such as mass shootings are events nobody wants to think of, but everyone needs to be prepared. An irresponsible approach to this incident is that it will not happen in your building. Recognizing that your facility is a potential target of a mass shooter is the vital first step in protecting against this scenario. The second step to preparing for a mass shooting is adapting your building. Strategies to avert shooters, delay them from reaching others, and reducing possible impact are found in new technology.
The most crucial measures of building protection are controlling access combined with a mass notification system. Access control, such as key cards, should be prevalent in buildings attempting. Key cards can keep delay intruders from forcibly entering rooms and buy time that could save many lives. A mass notification system is different than a fire alarm in the sense that it should have the ability to contact emergency services as well as other employees directly. Shooter detection recognizes when shots are fired and notifies anyone by a mass notification system.
New technology is making it possible to alert people quicker during a shooting situation. Video surveillance can be used to analyze individuals showing unusual habits. Time is the most crucial factor in keeping people away from the alleged shooter. It is essential to vamp your space before a tragedy, instead of after it is too late. It is commonplace to see these amenities installed in offices, retail, and industrial spaces on the commercial real estate market.
If you have any questions regarding commercial real estate throughout Central Georgia please contact Patty Burns or Trip Wilhoit.