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 the hotel industry, the rise of warehouse and distribution centers and cost-saving improvements to college campuses.
Hotels Seek New Opportunities to Stay Ahead of the Curve
The rise of the sharing economy has prompted hotels to explore new ways to add value to their current models.
In order to compete against companies such as Airbnb, hotels are shifting focus to creating a unique customer experience. Hotels in tourist hotspots such as Chicago and Detroit are becoming more modernized and are embracing advanced technology to increase productivity and to cater to the demands of millennial travelers.
Additionally, forward-thinking competitors are boosting guest loyalty and improving the overall lodging experience by offering amenities such as co-working spaces, member-exclusive experiences and ‘grab-and-go’ food options.
E-Commerce Sparks Rise in Warehouse and Distribution Centers
E-commerce has led to a major shift in the retail landscape as more consumers are opting to purchase items online. As e-commerce continues to gain traction, cities will likely experience a decline in brick-and-mortar stores and a spike in warehouse and distribution centers.
In efforts to cut down delivery time and reach a broader consumer base, online retailers are looking to expand into urban metropolitan areas, such as Detroit and Cleveland. Cities like these are often still easily accessible from many of the country’s top primary markets and allow companies to build industrial space at affordable rates.
Universities Look to Provide a High-Quality High-Tech Campus Experience
Higher education leaders are expected to provide a high-quality and high-tech campus experience. However, many universities are facing financial strains such as declining revenues, outdated facilities and rising pension liabilities.
To combat the pressures to improve offerings and reduce costs, higher education leaders are rethinking ways to better utilize its facilities and energy and outsource its management. Heading into the new year, real estate and higher education facilities will be determined by these following trends:
- Smarter space utilization.
- Outsourced facility management.
- Emerging technology for real estate efficiencies.
- Faculty management team training and education.
- Alternative ways to finance new construction and renovation.