By Jovana Cvetković
Considering that we are living in VUCA (Volatility, Uncertainty, Complexity, Ambiguity) times, business models are experiencing changes driven by technological advancements and broader economic and environmental factors. Consequently, the Commercial Real Estate (CRE) industry is undergoing significant transformation, ruled by shifting market dynamics, evolving consumer preferences and emerging trends. The challenge lies in effectively aligning these occurrences with the company’s business strategy.
Opportunities and Trends
Adaptive reuse, with the shift in consumer behavior and the rise of e-commerce, many traditional retail spaces are being repurposed for mixed-use developments, including residential, office and entertainment spaces, which allow both property owners and retailers to maximize the utility of their spaces and to empower placemaking, providing the community they gather with an authentic experience.
The line between online and offline retail is blurring as retailers adopt omnichannel strategies, integrating physical stores, e-commerce, apps, and social media to meet customers across their purchasing journey. Experiential retail focuses on food, entertainment, and family-friendly offerings.
Hybrid work models are transforming office spaces with flexible layouts, wellness-focused designs, and tech integration. Sustainability is also thriving, with energy-efficient buildings incorporating green building principles.
Post-pandemic, the emphasis on flexibility, health, and safety has accelerated in CRE. Strategic alignment with these trends can drive success, foster resilience, and create a competitive edge.
Recommendations for the industry
Promote authenticity through placemaking, drive innovation for a competitive advantage, and build resilience with sustainability and risk strategies.
Adopt ESG practices to meet sustainability demands. Enhance digitalization, use smart tech, IoT, and AR/VR to enhance operations, marketing, and retail experiences.
Prioritize flexibility in office and retail to align with hybrid work and experiential consumer trends.
Jovana Cvetković
Jovana Cvetković is Development, TO and Innovations Director at MPC Properties.
