Global Trends in 2024 for the Corporate Real Estate Industry
We have observed a shift in Corporate Real Estate (CRE) leaders, whereby more consideration is placed on portfolio optimisation and return on investments, a growing workforce, technological advancements and the boom of AI, and lastly sustainability and the impact on our planet. These core focuses have shaped the decisions of the CRE industry.
- Portfolio Optimisation and Return on Investments
For businesses to ensure that they maximise their return on investment within the CRE industry, they need to consider all the factors to be discussed in this article. By optimising their property portfolio, they can ensure that they invest in properties that meet the discussed criteria, or upgrade their existing properties. It is important to conduct thorough market analyses to identify high-demand locations and follow these emerging trends, thereby ensuring businesses make strategic investments and acquisitions.
- A Growing Workforce
Post-COVID, many businesses have required employees to return to working full-time in office spaces. Major companies such as Amazon, X, Apple, and Google have enforced this within their businesses. It is believed that encouraging employees to work in collaborative office spaces fosters better communication and higher levels of productivity. With economic activity resuming, companies are expanding their operations and workforce, therefore businesses are forced to upgrade, expand or invest in larger office spaces.
- Technological Advancements and the Boom of AI
There is a huge emphasis on incorporating technological advancements and AI within businesses. These tools have allowed businesses to improve operations, streamline processes, empower employees to work more effectively as well as provided businesses with more insights to make informed decisions. Developments and improvements to existing CRE infrastructure must be considered when investing in property. These advancements also allow property owners to monitor their buildings more effectively.
- Sustainability and the Impact on our Planet
There is a growing concern about climate change and the impact that businesses have on the planet. Businesses have had to invest in alternative energy sources and greener operations to reduce carbon emissions. Sustainable real estate is becoming a non-negotiable for businesses. The CRE industry has had to consider investing in properties designed according to green building certifications and pay close attention to a building’s operational environmental performance such as energy intensity and greenhouse gas emissions.
Conclusion
In summary, implementing energy-efficient upgrades and sustainable practices can reduce operating costs and enhance property value. Additionally, diversifying the portfolio across different properties and geographic areas can mitigate risks and capture businesses with different needs. Considering the capacity of a growing workforce can lead to better investing in the right properties. Proactive property management ensures maintenance costs are minimised. Finally, leveraging technology for data analytics can provide insights for informed decision-making, ultimately enhancing overall investment performance.
Orion Real Estate is set to expand and elevate our commercial property portfolio with ambitious development plans for top properties that aim to transform the commercial real estate experience. With significant growth potential in development, we are leading the way in innovation and progress within the South African commercial property market.