Protecting Your Commercial Real Estate Properties in the Digital Era
Most commercial real estate investors recognize that the digital era is changing everything about business - from how retailers must advertise to the way they use space. Mitigating for this issue and maintaining a thriving portfolio can be difficult, however, as it t requires tenacity, creativity, and a willingness to think outside the “big box.” Learn more about how you can protect your CRE portfolio in the digital era, and discover how a skilled real estate attorney can assist.
The Digital Era's Impact on Commercial Real Estate
People used to spend countless hours at the mall and big-box stores. Now they go to their favorite store's website (or perhaps even a reseller) and purchase items from the comfort of their own home. Retailers like Amazon are even making it possible for consumers to order everyday items online and have them delivered, sometimes in the same day. In short, brick-and-mortar stores are seeing less foot traffic, and businesses that have failed to build a digital platform have already either gone under or are currently at serious risk of doing so in the future.
For investors, this means recognizing that big spaces are not as profitable as they once were. Fewer retailers want (or can afford) such space. Office spaces are less needed as well since an estimated 3.9 million American workers now telecommute at least half of their work-week.
Tips for Maintaining a Thriving CRE Portfolio the Digital Era
Commercial investors who wish to continue growing their portfolio in the digital era are encouraged to go beyond due diligence and trend analysis. Try to think creatively about the space and how it can be used, and focus on smaller spaces that have multiple uses, rather than large, single-use properties. It may even help to consider how you might offer more experience to consumers or high-end retail clients. As an example, consider the Instagram museum trend. People are paying fees to visit this bigger-than-life rooms to capture selfies. Many of these spaces have retail sponsors, which offers yet another source of potential income for lessors and/or investors. Lastly, work hard to be flexible and adaptable with tenants, as it is far easier to keep a lessor than it is to find a new one.
Contact Our Oak Brook Real Estate Lawyers
At Lindell & Tessitore, P.C., we strive to ensure our clients have the tools, resources, and knowledge they need to build a thriving and diverse real estate portfolio. Skilled and experienced, our Naperville real estate attorneys can assist you with every legal aspect of your current or future investment project. Call 630-778-3818 and schedule a personalized consultation with our offices to get started.