There has been some buzz over the last couple of months about Gen Y and its impact on commercial real estate in 2014. Some feel this impact could be a dominant trend for many years to come on all segments of commercial real estate.
GEN Y: TECHNO-SAVVY AND DOMINATING THE WORKFORCE
Gen Y is a generation of techno-savvy, digitally sophisticated twenty and thirty year olds that are beginning to dominate the workforce. According to a 2012 estimate from the U.S. Bureau of Labor Statistics, Gen Y employees are expected make up 40 percent of the U.S. workforce by 2020. This shift will dramatically change the way we work since Gen Y will significantly outnumber other generations in the workforce.
GEN Y: THE FUTURE OF OFFICE
One of the largest segments of commercial real estate that will be affected by Generation Y will be the orientation of office space, from the amount of space used by an individual to the conference rooms and social space. The use of technology with this generation and their willingness to work in collaborative and fun environments, without having ties to a particular desk or space within the office, will force businesses to re-evaluate the cost of space needed per person and put more emphasis on new technology. The use of open collaborative space is not something new for 2014, but we will begin to see more adaption to the concept along with “green” practices in office design.
GEN Y: THE CITY SLICKERS
Gen Y is an urban generation. They have abandoned their family homes in the suburbs and set out for life in the city. This influx of Gen Y employees living in urban environments encourages more companies to locate to larger cities or higher-density locations to attract the workers they need. If employers are not currently located within these urban locations, companies often provide luxury buses to transport their employees to and from their more distant office locations. This impact could mean that companies will begin to search for space closer to city in order to take advantage of the large pool of Gen Y employees located in that area.
HOW CAN TURNING POINT HELP?
Turning Point Real Estate is always looking into the future, if you are interested in what this may mean for your portfolio than feel free to contact us. We can offer a range of consulting services to clients.