Commercial RE: Evolving trends & insights

By- Nayan Raheja, Raheja Developers

The commercial real estate industry is known for its dynamism, changing with the times, adopting new design languages and incorporating the latest thoughts. It constantly evolves, reflecting the current preferences and social and economic reality. This process is so slow that it is barely noticeable. But then the pandemic struck and left nothing untouched. Commercial realty was no exception. As a result, the past few years have witnessed a significant shift in how commercial real estate is perceived and developed. In this article, we will discuss some of the latest commercial real estate trends that are shaping the industry.

Horizontal Spread Curtailed 

The days of behemoth commercial structures sprawling across acres of land are slowly ending, especially in the Metro cities. With the increase in land prices and the lack of available land, developers are focusing on creating small boutique commercial units that offer high value to their customers. This trend is becoming popular in urban areas where space is premium.

Growing Vertically

As the horizontal spread slows, developers focus on increasing the number of units per square foot of land area. This has led to a surge in vertical commercial developments. High-rise buildings with multiple commercial units are becoming increasingly popular, especially in urban areas. These vertical structures allow developers to maximize the use of available land and offer higher value to their customers.

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Mixed-Use is the New Flavour

Mixed-use commercial spaces are becoming increasingly popular as they offer a combination of retail, office, and convenience stores in one unit. This trend is gaining momentum as developers realize the value of creating commercial spaces catering to their customer’s diverse needs. Mixed-use commercial spaces offer convenience, accessibility, and a sense of community that is hard to find in other commercial developments.

Retail Spaces Mingle with Office Spaces

Office spaces have become an intrinsic part of the retail space, offering a dedicated customer base for businesses. This trend is becoming increasingly popular as developers realize the benefits of having a captive audience already present in the commercial space. This trend is prevalent in urban areas where people prefer to live and work in close proximity.

High Streets Gain Prominence

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Boutique retail spaces that are smaller in size, quick to develop, and low rental and low on maintenance are gaining popularity. Developers are focusing on creating high-street commercial spaces that offer a unique shopping experience to customers. These boutique retail spaces are designed to cater to niche markets and provide a high-value shopping experience to customers.

Studio Apartments are an Intrinsic Element

Studio apartments are becoming an integral part of the commercial space offering value-for-money spaces for its inhabitants and regular rental yield for investors. This trend is becoming popular in urban areas where people prefer to live and work in close proximity. Developers focus on creating commercial spaces catering to their customer’s diverse needs.

Recreation and Relaxation a Major Draw

Commercial spaces that offer recreation and relaxation are becoming increasingly popular. What was once the mall has become part of the mixed-use commercial space. Developers focus on creating commercial spaces that offer a holistic experience to their customers, incorporating elements such as gyms, spas, and entertainment centres.

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Rising Prominence of Co-Working Spaces 

The rising prominence of co-working spaces is another trend shaping the commercial real estate industry. Co-working spaces offer businesses the flexibility to work in a shared space without the overheads associated with traditional office spaces. This trend is becoming popular among start-ups and small businesses that need access to flexible and affordable office space.

The commercial real estate industry is constantly evolving. The latest trends discussed above are shaping how developers approach commercial real estate development. As the industry continues to grow, it will be interesting to see how these trends develop and shape the future of the commercial real estate.

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