Millennials are the coveted demographic segment with more of their earning and spending years ahead of them. The way millennials think and act are watched closely by the real estate industry.
Below are seven examples of how millennials are driving the real estate bus.
Hold the Pampers
Studies show that millennials are putting off having children than their boomer counterparts did. In response, developers are delivering housing communities that have less playgrounds and smaller units.
Craft Brew for All
Millennials like local restaurants that feature locally grown fare and organic ingredients. In response, national chains like Olive Garden, TGIF are suffering. Some, like Bonefish, are looking for creative ways to localize their menu while keeping costs down. Not an easy task.
Side Hustle
Millennials like open collaborative office platforms so they can brainstorm and collaborate. Studies also show that millennials are seeking side opportunities to supplement their income. As a result, companies like WeWork are expanding globally to provide interesting open collaborative office spaces with perks like free beer and networking opportunities.
Natural Light
No, it is not more beer millennials demand but rather more natural sun light and cleaner air in contemporary workplaces. More office developer/operators are seeking LEED certified buildings and a lesser “carbon footprint” that have better air circulation and filtering, better water quality and even built with recycled materials.
Say Hello to Corporate!
Millennials have embraced telecommuting and remote workplaces. As a result, there has been a decrease in typical bricks and mortar office space and an evolution of more collaborative and an increase in public spaces where business can be conducted outside “corporate.” Some banks have even started to roll-out new style café-bank hybrids with retail hours that are more like Starbucks than they are banks. one example is Capital one 360 which is rolling new locations nationwide.
Home Sweet Home…NOT!
Buying a home has become more difficult for millennials. Between stricter underwriting, difficulty in saving a down payment, increasing home prices and lack of new product, millennials are having trouble buying homes. As a result, there have been a proliferation of rental housing being developed over the past three years. Nationally, multi-family housing starts have nearly quadrupled to 384,400 starts since 2010 when only 104,300 starts were noted.
They Like to Walk
Recognizing the desire of millennials for walkable communities, developers have begun to seek new ways to develop in urban areas near shopping and central business districts. They have also incorporated more local parks, particularly linear parks and included senses of place with local historical significance.
Walter Duke + Partners is a 40-year old full service commercial real estate advisory company based on Fort Lauderdale, Florida. Since 1975, the firm has completed over 15,000 assignments totaling nearly $30 billion.