The commercial real estate market in California is increasingly looking toward the future, and for many developers, that means tailoring work to the interests of Generation Z. Developers have noted that young people are interested in eco-friendly construction as well as spaces designed for higher levels of socialization. Generation Z is defined as anyone born after 1996, the generation following millennials. As older members of the generation graduate from university and move into the business world, their purchasing power and influence is on the rise.
Some brand strategists advise that a greater understanding of youth culture is important when thinking about real estate developments as well as other commercial projects. For example, multifamily apartment buildings may put a strong focus on technology and connectivity as well as eco-friendly construction. Young people have shown consistent interest in the type of developments that encourage walkable, mixed-use space with community functions, restaurants and retail on site. With the rise of online shopping, retail itself is also changing. Restaurants, with their social atmosphere and unique product, remain a primary part of retail development. However, food delivery is also on the rise, especially as many “gig economy” services promote different delivery systems.
Industrial construction is also shifting with changes in technology. Distribution centers for online shopping are a major source of growth, and the development of 3D printing technology could change manufacturing as well as distribution. Many of these industrial sites will be located close to consumers as they are designed for fast delivery.
Shared offices and co-working spaces are on the rise, especially as many people work away from a central office. There are a number of rising opportunities in the commercial real estate market that reflect these broader socioeconomic shifts. For people considering investment, a real estate lawyer may help ensure that contracts are well-executed and beneficial.