Space Utilization in An Evolving Commercial Marketplace
With the changes in the need for office space, commercial property owners are contending with much uncertainty. Where demand was once high for real estate that could house employee dense businesses, that reality is now altered. As a result, the usage of space in buildings must be reevaluated. The only way to weather this storm is to adapt.
These are some of the trends in space utilization in an evolving commercial marketplace.
Although the economy shows signs of recovery, unemployment is up, people are working from home, and many are relocating. Lease renewals for offices are down. Even though stable companies may be willing to renew their leases, they might flock to smaller space requirements creating more vacancies.
Increased vacancies are creating the potential for reconfiguring floors of high rises. Property owners are looking at whether offices can be transformed into retail or dining spaces. Converting entire floors into hospitality spaces is another solution.
With some imagination, the possibilities are endless for the effective use of space.
With a decrease in the supply of residential properties, many investors are looking toward commercial real estate instead. Occupancy concerns, lack of rent growth, and other factors had previously put capital on pause. It is now flowing back into the market, and investors are anxious to explore opportunities.
High-end investors are purchasing real estate to protect against inflation and take advantage of low-interest rates. Because the market is so competitive, interested parties must act quickly when they find attractive deals.
To remain competitive, commercial property owners are required to adopt technology. The power of data has come into the spotlight as investors take advantage of data to inform their purchasing decisions.
Immediate access to market intelligence and data banks is helping savvy investors operate outside their geographical regions and asset classes. This trend is driving the increase in the demand for already limited stock.
Environmental, Social, and Governance (ESG) Impact
The term ESG helps in evaluating corporate behavior and determining the future financial performance of organizations. It is the new measure of success for companies, non-profits, and countries alike. Successful businesses must not only deliver financially but also show a positive effect on society.
ESG is influencing real estate from every perspective. It is not only impacting tenants and the space they want to utilize. It is significantly affecting their willingness to return to the office. This trend is moving value and access to capital markets to raise equity and debt. Because more and more investors leverage ESG metrics to determine the value of a company, the use and reuse of space are being carefully thought out.
Shifting Tenant Expectations
The greater the fluidity of how a space may be used, the more marketable the property. Location is a significant factor, as well. This change is more evident than ever before as tenant and resident expectations for commercial real estate have elevated. Consumers now expect the same customer experiences where they live and work from food delivery and shopping apps. Stream-lined services, excellent customer service, and immediate gratification are the new norm.
Commercial real estate owners must adapt to meet these demands. Those who do can command greater market share and higher revenue.
Design innovation for space utilization involves elements like raised flooring to get the maximum output from re-imagined space. A raised floor is an elevated floor that is built above a building’s original concrete slab surface. A hidden void is created for the passage of electrical and mechanical services and utilities to make the most of available space.
Some applications for raised floors in commercial properties:
- IT data centers and computer rooms
- Isolated air-conditioning zones
- Medical facilities
- Industrial sites
- Call centers
These raised floors are a revolutionary design that easily adapt to the changing face of commercial real estate. Some are made of 100% steel, which is environmentally friendly, far superior to molded plastic flooring, and constructed to last a lifetime. The systems can be installed without tools or fasteners and go together like Legos. Unlike other fixed flooring systems, they can be picked up and moved to another location.
Available coverings include:
- Ceramic Tiles
- Wood Tiles
- High-Pressure Laminate
- Vinyl Tiles
- Carpet Tiles
Raised floors such as Gridd are:
- Cost-Effective. Because the raised flooring system is unattached, it can be reconfigured or relocated. It is also considered movable office equipment, meaning it can be depreciated on tax returns.
- Customizable and Movable. The system comes in lightweight, modular components that can be moved or expanded to allow for business growth. The floor opens up to run new cables.
- Improved Safety and Cleanliness. Raised flooring tucks cabling and gets them out of the way. Tripping hazards and the need for ladders are eliminated, making the workplace safer. It promotes a clean, professional environment.
- Maximized Space. By running cables and electrical lines beneath the floor, vertical space is maximized. Buildings gain several feet of floor-to-ceiling height when raised floors are utilized in the evolving commercial marketplace.
Raised floors integrate cable distribution technology through a building infrastructure to adapt to inevitable space repurposing. Commercial property remains highly functional, and the whole process saves money.