Every month, JLL’s regional team curates the top commercial real estate industry articles to keep you in-the-know. In this month’s edition, JLL spotlights virtual reality in CRE, a rapid increase in commercial multifamily leasing, and modern architecture in city CBDs.
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Virtual Reality Enhances the Buying Experience for Prospective Tenants
Virtual reality (VR) technology is transforming the way real estate agents showcase and sell properties. VR software allows users to experience floor plans, views, lighting, landscaping and parking features from any device. As more industry professionals turn to VR for its added convenience, virtual tours will likely become the industry standard. As agents continue to seek profitable ways to implement the new technology, the VR market is expected to increase to $80 billion by 2025.
For now, real estate professionals are leveraging VR technology to offer an interactive experience that eliminates the need for on-site visits and enable tenants to better visualize spaces. Technologies like Matterport scans, Studio 216 and more allow clients to experience virtual spaces that feel real, which help when trying to visualize the look and feel of an office layout.
Cities Experience a Surge in Commercial and Multifamily Mortgage Originations
The Mortgage Bankers Association (MBA) 2017 Q2 report revealed an increase in commercial and multifamily mortgage loan originations, up 20% compared to the same period last year. Industrial, office, multifamily and hotel properties experienced the highest year-over-year growth, which indicates increasing development in each sector.
Commercial banking firms and construction professionals are preparing for a busy year as lending activity is expected to pick up, especially in Detroit where Rock Ventures LLC founder and Chairman Dan Gilbert announced plans to introduce the city’s tallest skyscraper to the CBD.
Cities should expect increases in commercial and multifamily mortgage originations as speculative development continues to pick up in the urban core.
Modern Architecture Enhances Visual Appeal in the CBD
Developers are seeking new ways to add character to the city skyline. Top architecture firms are constructing eye-catching buildings to attract prospective tenants to the CBD and enhance the city’s visual appeal.
Architects in Pittsburgh are interested in converting the former Art Institute to a modern office building, which will feature an attractive exterior design on all four sides to attract tenants. Additionally, the unique building will feature an 18-foot ceiling with garage doors to accommodate research and development uses.
With several major projects expected to break ground throughout the country, architects are working together to bring fresh visions to the CBD and transform cityscapes in the coming years.