Prices of properties are soaring in most countries, especially in cities. In Japan, people live in Goshiwons to save on rent and stay within city limits.
They are even smaller than the micro-apartments, with roughly a size of 50 square meters. A cabin in Goshiwon can cost anything from $100 to $500.
The size and factors like attached restrooms and shower areas determine the price.
Space crunch and the rising cost of properties fuel trends like micro-living. Even practices like coworking are influenced by real estate factors.
Additionally, COVID acted as an accelerator in the adoption of shared spaces.
The Building of the Future
These topics were brought up in YASC Sydney in Australia. Experts delivered their insights and opinions on probable solutions to address the housing dilemma.
Moreover, they discussed the possible solutions to accommodate growing commercial demand.
An innovative concept emerged from the discussions - the building of the future. It can combine purpose-built spaces for different demographics to create more utility and functionality.
A building can serve residents, businesses, offices, and other tenants at the same time. However, the concept is a deviation from traditional real estate thinking.
The Mixing of Asset Classes
The traditional business model in real estate revolves around asset classes. Every property serves a specific asset class, be it residential, retail, or working spaces.
However, various factors, including the pandemic, have created a need for change. The best option for developers and landlords is to develop a combination of asset classes in a building.
People are living a more fluid life after COVID. There remains only a thin line between professional life and a comfortable life at home.
Trends like remote and hybrid working are behind this shift. It has even impacted how we access offices, shopping, and entertainment.
The building of the future will combine several asset classes:
Micro-living
Residential
Student quarters
Commercial
Retail
Coworking
The concept of combining asset classes has existed for some time. The building of the future will build in it and usher a whole new level.
These spaces can sit on top or beside each other.
Developers can combine not only asset classes but also other factors. For example, they can combine spaces for previously separated short-term and long-term leases.
Challenges Are Expected
Developers and landlords may not be readily willing to adopt the concept. It requires a significant change of perception and planning.
Additionally, stakeholders must determine the perfect combination of asset classes based on needs, budget, and other factors.
The whole process can present a steep learning curve for investors and developers.
For example, traditional businesses may not be familiar with the technological infrastructure required for creating office spaces.
Or, someone dealing in retail spaces may be unaware of the nuances of a residential complex.
Technology Can be a Game-Changer
Properties that combine asset classes are profitable for owners and developers. The buildings attract a wide range of tenants, from residential to corporate.
It creates a sustainable source of revenue throughout the year. The revenues don’t take a massive hit if one sector fails to perform.
Technology can facilitate the adoption of creating combined spaces. Customized solutions can help owners manage a flexible and productive workspace.
They are less likely to deliver what modern tenants want without advanced real estate management tools and apps.
Technologies like Yardi can help stakeholders deliver what tenants want today. However, a majority of developers and landlords are yet to implement them.
A Shift in Mindset Is Visible
Most businesses considered technology an IT decision rather than a business topic even a decade ago. However, we can witness a change in common mindset across industries, including real estate.
Now, most agencies and real estate companies view technology as a part of business strategy. They know it can be a game-changer and foster growth and expansion.
However, more must be done to make technology a priority for everyone in real estate. It will hopefully take a few more years from now.
Adopt Technology for Growth
YASC highlighted countless moments reinforcing the need for technology adoption. Assetsoft can be your partner in success and provide adept consultation. We have an experienced team for implementing Yardi across offices and locations. Our team is also proficient in custom integrations and staff training. Contact us today to learn more.