New York City.
NEW YORK CITY – Commercial real estate has received an energy shot as the industry rushes to innovate the traditional antiquated process of architecture and design, motivated to attract and retain tenants in a world where customer experience and engagement are key to operational success, Thomas Vecchione, principal at architecture and design firm Vocon, tells GlobeSt.com.
"The stories we tell about a property to build or redevelop, someone won't live in 3 to 5 years from now. Then we've designed something people won't experience until later," he said.
Speed and acceleration in the industry have made five-year leases more common for square footage intended for a10-year lease. Time and velocity are forcing the CRE industry to innovate, and innovation doesn't have to mean taking on more risk, Vecchione said.
The general sentiment of the market is what will happen next, and with that mentality in mind, designing for younger generations from a future perspective can lead to the stockpile of bleeding-edge ideas, especially as technology remains a key driver in the real estate industry and core to lifestyle of the average end-user, having ideas stored and ready to test is essential, he added.
"Clients may not always be ready to test ideas, but they can support it enough for flexibility and further innovation," Vecchione said. "Stockpile innovation is about stockpiling innovative ideas, not creating risk, but sets up the property or business model so it is risk-averse and adaptable."
For instance, Vecchione cited empty storefronts along the Fifth Avenue corridor that are vacant amid a consistent flow of foot traffic. It's prime retail real estate that should have tenants but doesn't, which he attributes to the need for change. He said understanding the market and what will draw end-users on different time horizons could aid in attracting tenants and drawing customers.
"The industry as a whole and process is very static," he said. "There is a very structured way of thinking and real estate is evolving quickly. We have to change to adapt and move faster."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Mariah Brown
Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.
