Commercial Real Estate News Brief: July 2018

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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 why men prefer brick-and-mortar shopping, what to expect from the modern workplace and the impact of people moving to cities faster than jobs.

Men Still Want to Shop In-StoreCRE News July

A recent article from JLL shows that men prefer brick-and-mortar stores, which is part of the larger customer experience (CX) trend. Many men would rather go to a physical location where they can get a hands-on experience.

Why are men shopping in-store?

  1. Men want to touch and feel products before they buy them.
  2. Men want personalized convenience.
  3. Millennial men, in particular, are as interested in the shopping experience as the products they buy.

Many brands are catering to this trend by creating unique store experiences and retail events that draw big crowds.

“Retailers looking to attract shoppers in-store are finding that a memorable environment can help them do just that,” says Greg Briest, who specialized in retail leasing at JLL. “Many men really do appreciate that effort and customer experience as opposed to shopping online.”

The Modern Workplace Will Have Top Tech and Amenities

An article from Bisnow predicts what the office of 2050 will look like. Anticipate tools like augmented reality (AR) for client presentations, ultra-high-speed internet and video conferencing offset with lounges to escape the technology and earthly elements like wood.

With remote work and bring your own device (BYOD) becoming the norm, office spaces need to have the energy that will draw people to come back into the office while also blurring the line between work and home. Office spaces need to cater to both the nomads who don’t need a dedicated workspace and the residents who prefer a home base to buckle down.

While there are decades left until we see the office of 2050, there is an expectation that it will be a workspace with the latest technology and a customized amenities package to fit the tenant’s culture, work philosophy and vision.

People are Moving to Cities Faster than Jobs

According to JLL, a great urban migration is underway, as more millennials and employers set up shop in central business districts (CBDs) across the United States.

However, people are moving to cities faster than jobs, which results in Americans “reverse commuting” from urban areas to the suburbs for work.

The latest U.S. Census Bureau data shows that more than 4.8 million people reverse commute out of major cities in the 25 largest Metropolitan Statistical Areas, up 11.6 percent from 2011 levels, according to the JLL report.

Companies are fighting to recruit and retain talent, and one solution is moving from the suburbs to cities where talented young professionals live. To stop the migration, suburban office developers are getting creative with amenities, such as grocery stores, gourmet restaurants and putting greens.