The Commercial Real Estate industry is no stranger to innovation. As our culture and overall needs change, so do tenant and property owner expectations. I found a couple articles that discuss the need for office-to-residential conversions and how new materials can aid in creating more efficient buildings. With 2024 being less than a month away, I also found a few commercial trends that could be helpful in the new year.
NYC’s Office Building Conversions
Worldwide, there is a common theme in the commercial real estate sector: there is high demand for housing and a surplus of vacant office buildings. With office-to-residential conversions being a clear solution to this problem, many cities are taking part in these renovations. New York City is currently converting a 1970s office tower in lower Manhattan just doors down from a building that had a similar reconstruction in 2017. Though this project is no easy feat, engineers have found unique ways to work around the various challenges.
Creating Lighter Skyscrapers
With skyscrapers being known for their height, it’s vital that these structures are sturdy and stable to stand against high winds. Traditionally, this would be achieved by placing numerous steel columns and beams throughout the building. However, engineers have discovered effective ways to construct buildings that reduce material use and the overall weight of the building while also remaining rigid. Watch to learn the method used to make the Sears Tower 20% lighter, but still just as strong as the Empire State Building.
CRE Trends to Consider in 2024
As the year draws to a close, taking a proactive approach to navigating the future is essential. Awareness of trends in the commercial industry can provide valuable insights that inspire informed decisions and investments in the year ahead. Some trends that are showing up in commercial real estate include the use of AI, flex and coworking spaces, and implementing eco-friendly practices. Making value-add, core/core plus, and other alternative investments are also seeing a spike in popularity.
