5 Reasons I am Excited for the Next Decade in Commercial Real Estate

1. Cities are being rebuilt for people, not cars. By 2050, we still won’t be living like the Jetsons, but more than 90% of the world’s population will be located in urban areas and surrounding suburbs. Fortunately, the focus on urban planning in cities has started shifting to meet the needs of people in dense, urban environments. We will see urban areas undergo a transformative change to better improve how people live, work and play. 

• More city centers will be reclaimed for pedestrians and public space.
• Innovative supply chain distribution system solutions will be tested – like urban farming and London’s hyperloop proposal for package delivery.
• Creative placemaking and placekeeping will become an integral part of all urban development.
• Investment in public transportation systems like electric buses, dedicated bus lanes, and regional rail that connect urban hubs will be both people and planet-friendly.

2. Major updates to outdated zoning laws. Millennials, Gen Z and any generation coming after will never work, live or play the way we did in the 20th century, which is when many of our zoning laws were created. We are seeing major overhauls of zoning regulations in areas struggling with housing issues. For example, Minneapolis is sunsetting single family zoning city-wide in order to promote much needed multi-family housing. More standardized “by right” multifamily, accessory dwelling and affordable housing zoning will benefit the public as much as the commercial real estate industry.

3. More sustainable development. Paving areas adjacent to the sea may have worked in the past, but it doesn’t anymore. Requirements in urban areas along the water are starting to include green setbacks, which benefit both the community and the environment. We are also seeing consumers wanting green elements in new buildings at the office and in their homes. But, it’s not just that people want it, new challenges in our environment require it and the CRE industry needs to deliver on it.

4. More public/private/community partnerships. You can’t accomplish points 1, 2 and 3 without including all stakeholders.

5. A more inclusive commercial real estate industry. For the first time in my 25+ years in the industry, I am no longer surprised to see female brokers, developers and asset managers. While the industry still has a long way to go, especially in the more senior levels and with being more inclusive of people of color at all levels, there is progress being made. I look forward to the industry embracing young people from a variety of backgrounds and disciplines. Nothing I outlined above is going to be easy, or quick. We need the next generations to have the stamina and longevity to rebuild our cities in a way that meets their present and future needs.

While it’s likely we will experience a market slowdown in this decade, it will not hit all parts of the CRE industry equally. Our demographics and geography are such that problems in the economy will not hit mega-tech hubs like Boston, Seattle and San Francisco, in the same way it hits secondary and tertiary cities, and vice versa. Moreover, even when one asset class becomes stagnant, there will always be new and different opportunities for those who can adapt and envision the future. For those who are flexible, adaptable and have a passion for the built environment, the opportunities in the next decade will be endless ... but only if you look to the future of what cities could be and not dwell in what they are.