At nearly 80 million, millennials are the largest demographic in US history. And they don’t all live in amenity-rich apartments in the downtowns of large cities. Rather, many live in less centrally located but more affordable neighborhoods, while others move out of their beloved urban nests when they have children. Whatever these millions choose to do will have major impacts for the US real estate market.
What will the office building of the future look like? According to AECOM Global Practice Lead Andrew Laing, work space might not be owned or leased as it is now, but rather provided on demand, like an Uber ride. This is all part of an evolution that began with time-and-motion studies in the early 1900s and is still being driven by technology.
The race is on for US and global e-commerce leadership – and the battle will be won on the “last mile.” Who gets products to consumers fastest? Will they use FedEx, the postal service, their own trucks, bicycle messengers, or even drones? And how can real estate owners and developers take advantage of these fast-moving trends?
The US real estate industry is on a steady course to sustain growth through 2017, according to ULI’s latest three-year forecast. US real estate continues to attract a massive amount of international capital that is driving down cap rates. But the good times could end quickly as a result of unpredictable geopolitical or global economic upheaval.
Downtown office markets are hot – but so are some suburban markets. Silicon Valley, the leading example, rewards and motivates its tech-savvy employees with free transportation and a wealth of amenities – from outdoor space to food trucks to child and pet care. The losers: older suburban office buildings with no amenities.