The Power of Choice Takes Center Stage at Annual NAIOP NJ Chapter Meeting
The New Jersey chapter of the Commercial Real Estate Development Association (NAIOP) held its annual meeting at the Hilton in Short Hills in January. After an introduction of the 2019 leadership, there was a panel discussion on the outlook for the commercial real estate market for 2019 and the impact Amazon and other disruptors are having on how people use, develop and consider real estate.
A key theme was the impact of personal choice. People are living, shopping and working differently than before, which impacts the construction and design of residential and commercial space. More companies are forgoing traditional oversized office spaces to more condensed, shared office spaces.
- Co-working spaces, once seen as a cost-saving strategy for startups and small companies, are becoming more popular with mid-sized and larger firms as the price of office space and demand for amenities increase. Co-working spaces, which increases the number of employees per square foot, need to ensure that their infrastructure (e.g., electric, HVAC, connectivity, etc.) can support increased traffic.
- Amazon’s impact, for example, is reflected in residential rental developers adding increased common-area space to accommodate an increase in deliveries.
- An influx of packages are increasing the need for tenant space to handle packages securely and safely.
These new ideas will also force older buildings to adapt to the new demands. Just how will these market changes shape new investments and impact existing projects as developers and investors try to keep pace with demand?