To be successful in today's retail space, investors and developers need to adapt to the new risks and challenges that this sector faces. That is according to Joe Derhake, CEO of Partner Engineering & Science.
He recently told GlobeSt.com that technology and changing consumer behavior will change how our cities and buildings are designed. “Those who can anticipate how new developments like driverless cars or even online grocery services may create a risk of building obsolescence can take advantage of great deals or profitable adaptive reuse projects.”
Similarly, he says, there's a growing shortage of land suitable for development. “Those who are savvy enough to take on Brownfields can do very well in this market.”
Derhake also recently touched on the subject of technology and how they can make real estate assets obsolete. “Amazon has made some retail business plans obsolete, and our regional malls are reeling from this 15-year-old disruptive force. OK, that is old news—what is next?”
One very disruptive—and very exciting—technological development is the advent of driverless cars, which will change the value proposition of many assets, Derhake previously told GlobeSt.com. “For example, self-parking and self-refueling cars will render prime-location gas station and parking lots obsolete, creating lucrative opportunities for adaptive-reuse projects. And our cityscapes will change significantly if parking capacity no longer dictates what can be built. Driverless cars will make commutes more tolerable so that people may start choosing quality over proximity when it comes to locations to live and work. Driverless technology will allow increased capacity of our roads, which may cause the decline of railways and public-transport-related development. To stay ahead, CRE professionals should be thinking about the risks and opportunities such drastic changes present to their portfolios now.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
