New Generation of Real Estate

Statistics indicate by 2025, millennials are expected to occupy 75% of the workforce.  Their perspectives and immersion in the digital revolution may change commercial real estate.  Behaviors most likely to drive change are:
1) preference to live an urban lifestyle vs. suburban living – millennials prefer to live where they work, favoring mixed used living situations;  2) digitally driven living – millennials are tethered to their devices; 3) nomadic lifestyle with minimal long-term commitments – in many cases, millennials prefer to rent or share vs. own. 

The effect on real estate in various sectors may be:  1) office – densely populated urban centers  over suburban office parks; 2) retail – millennials prefer a shopping experience over aisles of product; anticipate more interactive experiences utilizing advanced technology; 3) industrial – expansion of online retailing will require increased numbers of distributions centers driving industrial real estate growth; 4) housing – millennials will likely continue to opt for the unchained living situation that renting or sharing affords.  The common thread that runs through all of these behaviors and likely manifestation within the real estate market is flexibility and freedom. 

Randy L. Watkins
Partner
970.352.1700
rwatkins@acmllp.com
www.acmllp.com

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