Technological developments, digitalization and automation will significantly change the commercial real estate market, and players need to start preparing for this, says a study released by Deloitte.
The digital revolution will drive changes in working habits, Deloitte says in a press release sent to the Budapest Business Journal. Many employees will work remotely, but will keep going in to the office. Office spaces will shrink and will be situated in city centers. Technological achievements will also improve public transport, which will make many parking spaces unnecessary.
As for malls and shopping centers, these will be less visited as customers increasingly turn to online shopping, says Deloitte. Malls will therefore need to organize events to attract customers. Both office leasers and shopping centers will need to collect more data on customers to foresee and meet their new needs.
Rental fees are likely to decrease and online interaction will make real estate brokers and third parties obsolete, the study predicts. On the other hand, winners of the transformation are likely to include governments, which can introduce new taxes ("robot taxes"). The increased tax volume can be used to finance unemployment, which will likely grow, as unskilled workers will be even less likely to find jobs in the digital age.
Gábor Gömöri, head of the real estate group at Deloitte Legal, noted that technology companies can become big players on the real estate market, using data mining technologies to offer value to tenants.