Changing world, changing property market
Thursday 11 April 2019
Technology and changes to the way people work are set to transform the commercial property sector and investors need to be attuned to these developments.
By The Landlord
That’s according to an expert in property technology who is in New Zealand to speak at a series of events put on by global real estate services firm JLL.
Jordan Kostelac, who is JLL’s Asia-Pacific director of PropTech, says the future of PropTech includes buildings with augmented capabilities.
“So that’s the ability to hold a device up to a building and see all its vital data, inspect plans, get instructions for repairs, or report an issue.”
There is a host of disruptors set to dramatically impact on commercial property in the next three years, he says.
They include the “sharing economy” and co-working, which emphasise communal spaces, and the Internet of Things, which allows devices to talk to each other and thereby streamline our activities.
“Commercial tenants and buyers have rising technology expectations, requiring more expenditure upfront,” Kostelac adds.
Additionally, these changes are leading to an increasing blurring of the lines between property sectors and a greater focus on providing a product for consumption.
JLL New Zealand head of research and consultancy Paul Winstanley says the future of work – whether in the office, shop or warehouse – is in combining creature comforts with a collaborative, carefully-crafted workspaces infused with technology.
"Retail is drawing customers with innovations like ‘enter-tailing’, combining retail with entertainment.
“Industrial is no longer solely driven by manufacturing but also logistics or the opportunity to switch to big box retail. And, of course, residential now needs to be geared to be able to work from home."
He says that in Auckland all of this ties in with the Council's future plans for the city.
"Their concept is to work, play, and live; all in one space with convenience, the value of time, better transportation options, and improved shared spaces being at the heart of the city’s future development."
But it means that low-tech properties are increasingly difficult to sell or let, Winstanley says.
“Across the country we’re seeing wider gaps in yield trends for prime and secondary assets, across industrial, retail and office.”
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