Commercial Real Estate News Brief: July 2017

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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 mixed-use retail strategies, the transformation of healthcare real estate, and the rise of retail drones.

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Modern Shopping Centers Require a Mix of Space, Place and Management

With some 109,500 shopping centers located in the U.S., more retail property managers are beginning to realize the value of using strategic designs to improve the shopping experience. Competing with e-commerce companies and physical retail spaces, managers must now seek new ways to create an environment where customers want to spend money without making the experience seem artificial.

In efforts to stimulate future developments, the Van Aken District in Cleveland began transforming its former transit hub into a vibrant, transit-oriented mixed-use space. The project is expected to bring over 100,000 square feet of retail space, 60,000 square feet of office space, a parking garage and a residential apartment complex to the city by 2018.

Modern shopping centers will be designed to attract and offer an authentic shopping experience to the right consumers. With the right blend of space, place and management, today’s most successful shopping centers will boost economic growth and remain competitive in the increasingly digitalized world.

Healthcare Providers Shift Focus on Location Convenience to Better Serve Aging Population

As the baby-boomer generation continues to age, healthcare organizations are turning to analytics to determine how to best service their patients. Healthcare providers are now shifting focus on preventative care, space optimization and patient convenience.

Today’s healthcare facilities are being designed with increased flexibility in mind. In order to provide the best healthcare services, providers must respond by designing facilities that can change with the ever-evolving population and their needs.

“[Healthcare] systems are turning toward more detailed analytics to discover what move makes the most sense,” said Jeff Karger, Senior Vice President of Brokerage.

Healthcare organizations are moving to locations where they are able to lower cost per capita while still providing high-quality patient care. To boost patient participation and provide convenience, healthcare systems are shifting away from acute downtown locations and closer to the aging population.

Retailers May Soon Leverage Drone Technology in Stores

While companies in the construction and infrastructure sectors of the CRE industry have already tapped into drone capabilities, the new technology has yet to take flight in the retail space. But, experts anticipate this to change. Retailers will likely use drones in the next decade to enhance business security before depending on the technology to carry out deliveries.

Walmart has already shown interest in implementing a drone system for in-store deliveries to enhance the customer experience. The company was recently granted a patent for a system that could shuttle products to customers, providing added convenience. While primarily large companies lead the charge, drones are expected to impact the retail space in the near future.