Technically, the definition of a Millennial is the generational group that followed Generation X. The Millennials are born from the mid 1980’s until the early 2000’s.They have actually replaced the Baby Boomers as the largest population bubble passing through American society. How do those of us born before the mid 1980’s see the Millennials? We see them as the kids who grew up on the internet, live on social medial and spend all their time with their faces buried in mobile devices.
They are not to be taken for granted. Millennials will have a great influence on many areas and change the way we live. One such area is Commercial Real Estate. The following is a list of these changes.
·Millennials prefer living in the cities more so than the Generation X and Baby Boomers. Commercial Development (more so office) will have to follow them and move from the suburban areas to the urbanized areas.
·There will be more rehab of existing type B and C buildings in urban areas for the Millennials to both work and live.
·Millennials prefer to work in open office spaces. Floor plans in commercial buildings will have to accommodate this. In other words, there will be less people competing for the corner office.
·Millennials marry later and have fewer children. The need for day care facilities as part of an office complex will be reduced.
·Old urban industrial buildings will be more desirable and reconstituted for high tech tenants.
·Commercial Real Estate will need less square footage for the same number of workers. Thanks to technology many Millennials have the ability to work from home part or full time. Having Millennials share the same workspace with staggered workdays will reduce needed square footage. In addition, technology itself is reducing the need for square footage. Bulky rolodexes have been replaced by smartphones and tube monitors have been replace by flat screens.
·Millennials have embraced the concept of mass transit. Existing commercial developments in suburban areas will struggle for tenants. The 45 minute one way commute by car with one passenger will not be acceptable in the Millennial’s world.
·In the Retail Commercial area the need for “brick and mortar” stores is being replace by online shopping.
·Because of their preference of urban areas Millennials will work, shop, eat and socialize in the same place creating a need for mixed use projects. They will work, shop, go to restaurants on the ground floor then go upstairs to live.
The Millennials are different from previous generations. They are looking for a better balance of work and play. The Commercial Development mindset - as previous generations had known - it must change to accommodate this balance. For a Commercial Developer to be successful today they must know this and accept it. One of those Commercial Developers is First Federal Realty DeSimone in Henderson, Nevada. Contact Joe DeSimone at 702 990 8660 for a Developer who stays up on the industries latest trends.