Ali Ata understands the real estate markets are experiencing the most profound changes for a century and these changes will continue to reshape the real estate market throughout the 2020s.
The different real estate markets will be impacted to various degrees. To survive, businesses have to reevaluate their business models and re-engineer their operations. The value element of all businesses will have to be restructured to accommodate the definite changes in the market place. Those businesses that take the lead or adapt early will survive and those businesses that chose to join later or not change at all will not survive. In a fast-moving business world, the time element is more critical now than ever.
The retail real estate market will experience the most impact. Retailers will have to re-think their business models. Ordering and delivery will become a critical element of the value-add of any business with the online ordering and home delivery overcoming brick and mortar stores. Businesses will have to compete on Logistics in addition to the traditional Product, Services, and Systems components. Convenience will become a large dimension of the marketing package. Winners will come out stronger if they can figure out how to take advantage of growing demand by consumers for the convenience of online ordering and fast delivery. On line ordering and home delivery and will become the way of doing business and consumers will pay for the convenience.
Secondly, the office space market will also see a dramatic change in the 2020s. Millions of employees have experienced, and many have enjoyed, the convenience of working out of their homes. This experience has proven to be beneficial to both, Employers and Employees. For many years employees have wasted hours commuting to work. It is estimated that on average people spend 32 days/year traveling back and forth to work. Businesses had to provide comfortable, and at times expense office space and facilities to attract talented employees. Now that both sides have realized that working out of the house can be beneficial to both sides, you will see a tremendous reduction in office space requirements in the 2020s.
Thirdly, the home building market will see a healthy increase because people working out of their homes want to upgrade their office workspace at home by either moving to a larger home or fixing their existing home office space.