ATLANTA—The reality of a changing commercial real estate landscape is not a new story line, but how specifically is the industry adapting? What can we expect in the days ahead?
GlobeSt.com caught up with Andrew Wright, CEO and principal of Franklin Street, to get some perspectives. At the foundation of the topic is technology.
“Technology is disrupting every industry including ours,” Wright tells GlobeSt.com. “We're combatting websites that claim you don't need a broker—you just list your property online or you enter some location metrics and it automatically tells you where to look. New technology is disrupting the way businesses deliver.”
Of course, technology is making most of the headlines but it's hardly the only factor at play. Wright also points to parking and transportation planning as issues impacting real estate development.
Wright offers a prime example: There is a billion-dollar expansion of Tampa International Airport plan to build a rental car facility. Next, he asks a question: Let's say in 20 years we have automated cars. What happens to that facility?
“Parking transportation centers are distance spaced based on drive times and how long someone could stay awake,” Wright says. “With automated cars, you could have a delivery from California to Florida made in two days because the electric- and solar-powered car never had to stop driving.”
Like with anything, he says, you have to stay vigilant. From his perspective, commercial real estate professionals need to be constantly thinking not about where you are today but where you're going. (He's familiar with growing pains.)
“We cannot be thinking only in terms of one or two years because things always change. You need to be diverse, adaptive and proactive,” Wright says. “It's important to be self-reflective. It's hard to hear criticism at any level. The natural reaction is to be defensive. But just because you've been following a certain strategy doesn't mean it's the right one. That's life today. Everything is about changing and adapting.”
Whatever happens, the US commercial real estate market reigns supreme.
ATLANTA—The reality of a changing commercial real estate landscape is not a new story line, but how specifically is the industry adapting? What can we expect in the days ahead?
GlobeSt.com caught up with Andrew Wright, CEO and principal of Franklin Street, to get some perspectives. At the foundation of the topic is technology.
“Technology is disrupting every industry including ours,” Wright tells GlobeSt.com. “We're combatting websites that claim you don't need a broker—you just list your property online or you enter some location metrics and it automatically tells you where to look. New technology is disrupting the way businesses deliver.”
Of course, technology is making most of the headlines but it's hardly the only factor at play. Wright also points to parking and transportation planning as issues impacting real estate development.
Wright offers a prime example: There is a billion-dollar expansion of Tampa International Airport plan to build a rental car facility. Next, he asks a question: Let's say in 20 years we have automated cars. What happens to that facility?
“Parking transportation centers are distance spaced based on drive times and how long someone could stay awake,” Wright says. “With automated cars, you could have a delivery from California to Florida made in two days because the electric- and solar-powered car never had to stop driving.”
Like with anything, he says, you have to stay vigilant. From his perspective, commercial real estate professionals need to be constantly thinking not about where you are today but where you're going. (He's familiar with growing pains.)
“We cannot be thinking only in terms of one or two years because things always change. You need to be diverse, adaptive and proactive,” Wright says. “It's important to be self-reflective. It's hard to hear criticism at any level. The natural reaction is to be defensive. But just because you've been following a certain strategy doesn't mean it's the right one. That's life today. Everything is about changing and adapting.”
Whatever happens, the US commercial real estate market reigns supreme.
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