Why Innovation is Key in Office Space and Retail sectors of Commercial Real Estate
Change demands a shift in thinking and in the way of doing things. It will be hard to disrupt the familiar ways but, innovation is a major factor in the success of any business.
Kmart, Nokia and Kodak are few of the many examples of companies that failed to be innovative and as a result, Kmart and Kodak died and Even though Nokia tried to act on its innovativeness at the last minute, it was too late.
In Kenya, we are currently witnessing the closure of many enterprises. Early this year, DTB bank announced that it will close down six of its branches by the end of 2021. Faulu bank also announced the closure of four of its branches by the end of this year. Major names in the supermarket industry have also closed shop.
What does this mean?
This means that investors need to come up with new strategies to keep up with the changes. One property expert I interviewed stated confidently that the office space and retail sectors will have no place in the digital age.
Most companies are embracing the digital space. People have adapted to working at home more and doing their shopping online. There will be less demand for office and rental spaces.
More demand for warehouses
With less demand for brick and mortar offices, the need for warehouses will increase. We are also going to witness more drop and pick centres.
In this case, warehouses don't need to be as large as those near industries. Online shops will need just enough space for their goods. Investors can adjust to such specifications as time goes by and more offices are vacated.
For the few spaces that will be needed for offices or retail stores, investors will have to keep up with technology. They need to be well connected to the internet of things (IoT) like smart security features and high-speed wireless internet.
Cybersecurity will be a major concern; clients will have to be assured that their private data is protected.
The digital age is going to call for a commanding social presence. As more and more social platforms keep coming, investors need to use this to their advantage and showcase what they have to offer. This will be one of the measures of how smart they are.
Reliable Energy Solutions
With unreliable electricity and the high costs that usually accompany it, investors will have to consider reliable energy solutions like solar energy. This will reduce costs and attract more clients.
To maintain a presence in these two sectors, investors will have to stand out.