By: JC Pelusi, Great Lakes Market Director, JLL
Below is an excerpt from an article that was originally published by Heartland Real Estate Business (www.REBusinessOnline.com), reposted to this blog with permission from the Editor. Visit the full article for a more detailed look at how millennials are shaping commercial real estate demand.
It’s no secret that the millennial generation is becoming an integral piece of our nation’s workforce. Millennials will dominate the workforce by 2015 and will comprise 75 percent of the workforce by 2030, according to the U.S. Bureau of Labor Statistics. Consequently, millennial lifestyle preferences and work habits will continue to transform economic activity and, more specifically, shape commercial real estate demand.
This up-and-coming generation is the primary driver behind workforce urbanization. Following a recent influx to U.S. urban cores, it’s clear that young professionals born between 1980 and 1997 prefer downtown living, working and shopping.
We’re already seeing the economic impact in major metros and in secondary markets. In fact, space availability is low across the region as a whole, and The Atlantic magazine recently featured Cleveland and Pittsburgh among the top nine U.S. cities “Where Millennials Can Make It Now.” The Atlantic noted that Detroit was already established among those “deemed magnets for young, creative people.”
The commercial real estate implications are unique to the young generation of professionals, including the evolution of the collaborative office space, new retail structures that cater to online shopping and, subsequently, more demand for downtown residential space.
But now that we are in the midst of a generational shift, how are businesses adjusting to the changing landscape? How are millennials shaping the nature of new demand in our region? Following are three major trends driven by the millennial generation across our region in the office, retail and multifamily sectors.
Download the full article from Heartland Real Estate Business to read on.
About the Author
JC Pelusi is an International Director for JLL and works out of the Pittsburgh office. As the leader for JLL’s Great Lakes region, JC has extensive experience in a variety of areas, including Corporate Account Management and Transaction Services.