On the other hand, this demographic group is also spearheading the trend of developers building larger homes to fill the demand for multi-generational housing, since many young adults are moving back home and older adults are requiring in-home care. Low interest rates are fueling the development and purchasing of such homes.

Also of note, according to McAvey, is the decrease of office development in the next 10 years due to increased connectivity in the workplace, allowing less time spent in a traditional office. As GlobeSt.com previously reported, the way executives handle portfolio optimization and asset management is shifting due to alternative offices such as Starbucks, home offices—even the company cafeteria, which “are all third places. We can learn how to use that in a more integrated way,” said Russ Howell, managing director, strategic consulting for Jones Lang LaSalle, during a CoreNet breakout session here in May. McAvey says while 275 square feet of space per employee was the old norm, requirements will drop as low as 100 square feet for some jobs, and collaborative designs with open spaces will be the new standard.

The ULI study also predicted labor shortages in education and healthcare, which are among the fastest-growing industries, affecting real estate. Most new jobs will be generated in metro areas, and businesses will cluster around healthcare and education facilities—read medical office and student housing—so development in close proximity will thrive and create a desire for more horizontal and vertical mixed-use development.

In the retail sector, more stores are discovering the benefits of “showcasing,” in which the consumer goes to the store to see a product but purchases the item online, sometimes while still in the store. This trend will decrease the need for large retail space, and open design concepts like those of Apple stores will grow in popularity.