Ahead Of The Game: How ABWs and Vertical Farming Are Changing The Landscape
MyEListings' markets and economics editor and creates content about global macro events and their impact on US commercial real estate.
Large, illiquid, and stodgy investments have traditionally been linked to commercial real estate investing. But, younger investors are looking to cutting-edge ideas like Activity-Based Workspaces and Vertical Farming as possible game-changers in this industry as the global economy continues to transform.
Activity-Based-Workspaces
Instead of having a permanent workstation, activity-based workspaces (ABWs) are intended to give employees a variety of settings to work in. This strategy lowers real estate expenditures for businesses while boosting staff productivity and cooperation. ABWs provide landlords a chance to draw in and keep renters by providing adaptable and varied areas that meet the requirements of this expanding trend.
The global market for flexible office space is anticipated to expand between 2020 and 2025 at a compound annual rate of 20.34%, according to a report by Facts & Factors. Several factors, such as the rise in remote work and the demand for more flexible work schedules, are fueling this trend. Younger workers are looking for more interactive and collaborative work environments as they enter the workforce, and ABWs can provide the ideal answer.
Vertical Farming
Vertical farming is another cutting-edge idea that is catching on in commercial real estate. This entails employing artificial light, temperature, and fertilizer management to produce crops in layers that are stacked vertically. Vertical farming offers a variety of benefits over conventional farming, including the possibility to grow food closer to consumers in urban settings with less water and land use. Vertical farming offers real estate companies a fresh option for expansion to diversify their holdings and take advantage of an expanding market.
A report by Grandview Research projects that the vertical farming industry would expand between 2020 and 2027 at a CAGR of 20.4% in the Canadian economy, and in the US some estimates have implied greater rates than this. Many factors, such as population increase, worries about food security, and a move toward sustainable agriculture are fueling this expansion. The demand for food will only rise as the world`s population expands, and vertical farming offers a sustainable and effective means to meet this demand.
Game-Changing Ideas
For younger commercial real estate investors, investing in cutting-edge ideas like ABWs and vertical farming might transform the landscape. These ideas present the chance for potentially more thrilling and dynamic investments, as well as the chance to positively influence the environment and society at large.
REITs Starting To Take Note
Real estate investment trusts (REITs) are a well-liked method for investing in commercial real estate for younger investors who want to get in on the action. Investors can combine their funds through REITs and purchase a diverse portfolio of properties, including ones that use cutting-edge ideas like ABWs and vertical farms.
Investing in these creative ideas is not without its difficulties, though. To make ABWs appealing to renters, for instance, large investments in technology, furnishings, and design are needed. Landlords may also need to think about how ABWs affect building services like cleaning and security. Managing noise levels and distractions can also be difficult.
Significant Up-Front Costs
Similar to horizontal farming, vertical farming involves a sizable upfront investment in technology and equipment, as well as specific knowledge to run the facilities. Although artificial lighting and temperature control have an adverse effect on the environment, vertical farming offers a sustainable and effective technique to raise crops.
Notwithstanding these obstacles, younger investors have a new frontier when it comes to investing in cutting-edge commercial real estate ideas. Investors can take advantage of a developing market and even improve society and the environment by adopting these ideas.
New Twists On Old Themes
Companies engaged in real estate that can effectively overcome the difficulties of investing in ABWs and vertical farming stand to benefit greatly. In order to provide ABW spaces inside their buildings, for instance, some landlords are collaborating with co-working operators. This can assist to draw in and keep tenants. Similarly, real estate firms can profit from vertical farming by renting space to such businesses or by including it in mixed-use developments.
Wholistic Gains
Beyond financial gains, investing in cutting-edge commercial real estate ideas may have other advantages. Real estate firms can improve the well-being of their workers and the community by making investments in ABWs. A more adaptable and dynamic work environment that offers individuals with ABWs can increase productivity and lower stress. Also, by offering communal spaces that the larger community can use, ABWs can contribute to the revitalization of metropolitan areas.
In a similar fashion, investing in vertical farming can benefit the environment and food security. Vertical farming can be carried out in urban locations nearer to consumers and uses less water and land than regular farming. As a result, less long-distance travel is required, lowering carbon emissions and time to market. Also, by offering a sustainable and effective technique to cultivate crops, vertical farming can help alleviate problems with food insecurity.
Summing Up
Companies in the real estate industry that can successfully incorporate cutting-edge ideas into their portfolios can set themselves apart from rivals and draw in a new generation of investors. Real estate corporations can show their commitment to these principles by investing in ABWs and vertical farming. Younger investors are becoming more interested in investing in businesses devoted to social and environmental responsibility, and these investment angles can therefore serve them better than others might.
For younger investors, investing in cutting-edge commercial real estate initiatives opens up new possibilities. Investors can take advantage of a developing industry and possibly have a positive impact on the environment and society by adopting ideas like vertical farming and activity-based workspaces. To make these investments successful, real estate managers must allocate investment dollars to technology, knowledge, and design. Yet, investing in these concepts is not without its hurdles. Investing in cutting-edge commercial real estate ideas may have advantages that go beyond monetary gains and can improve the health of workers, the community, the environment, and the availability of food.
Other recent articles
Article Search
Share
All Article Categories
