The real estate leasing industry has been dramatically affected by the onset of the COVID-19 pandemic. Inventory and property prices were significantly adjusted, and property owners were forced to adopt various technologies to streamline internal processes and keep their business afloat.
On the other hand, global economies are now showing life, slowly adjusting to the pandemic and starting to recover, the lease management industry is among them. In fact, a report from The Wall Street Journal revealed that commercial real estate sales transactions in 2021 totaled $809 billion, surpassing 2019 and 2020.
Now, this can be good news for the real estate leasing market. But as with other sectors, property lease industries aren’t immune to major cyclical changes. To keep abreast of the continuous market shift, follow the top trends below:
1. Climate issues may impact some property lease markets
Long before COVID-19, climate change has been affecting real estate properties. In 2022, adaptation to climate change and natural disasters have become more prevalent. For example, climate issues like wildfires, tornadoes, and hurricanes have dominated the news outlets last year. It’s therefore expected that these issues will impact the price of real estate leasing properties.
Premium beachfront infrastructures are expected to drop their price because of being prone to storm surge and flooding. Green properties are anticipated to lessen the bad effects of climate change. For example, more residential and commercial spaces may be built with a lower carbon footprint, with more durability and even a wellness certification.
2. High demand in master-planned communities and microcities
Forget about subdivisions with a sea or mountaintop view. Nowadays, people are more inclined to lease properties within a microcity or master-planned community. This means living in a residential neighborhood with access to commercial and recreational amenities, including supermarkets, offices, malls, and even hotels and bars.
This trend is especially popular among millennials who prefer to lease homes that can accommodate their fast-paced activities, needs, and preferences. Most millennials are young employees who want to settle down in master-planned communities because of the proximity of their workplace. Sure, you can rest well in suburban areas but they might not be suitable for people with an active lifestyle.
3. More smart homes and the rise of ecommerce
Again, millennials are the top lessees of real estate properties. With this, property owners or leasers need to be smart and present in ecommerce. For one, most millennials are tech-savvy and would prefer to search for infrastructures via the Internet. Hence, you should make sure that you have a dedicated sales and marketing team to respond to all inquiries and advertise your property online.
You may also invest in 3D virtual tours, property lease management software, or 360-degree panoramic images and videos to showcase your property. As mentioned above, the pandemic has significantly affected real estate operations and transactions. Hence, people might still like the idea of having virtual tours rather than in-person visits in the new normal.
4. Mixed-use zoning
If there’s one biggest trend that emerged from the pandemic on the real estate leasing front, it’s mixed-use zoning. This pertains to adaptive reuse of assets, such as hotels becoming housing, restaurants becoming co-working spaces, last-mile distribution centers transforming into work environments, and parking transforming into self-storage.
According to a JLL’s CEO Jacob Bates, the repurposing and repositioning of existing assets will lead to a tremendous shift in the property lease industry, adding value to investments and projects for years to come.
5. More property tech innovations
Property tech innovations or PropTech will continue to be beneficial in the real estate industry even post-pandemic. With more technologies in place, property owners are expected to digitize their interactions and create efficiencies through the best lease management software. From handling customer relationships to tracking transactions, payments, and rental lease agreements, everything will be more convenient through an online platform.
Now, you might ask: what is lease management software? A lease management software or lease administration software allows property lease managers to automate renewals, store legal documents, and manage applications and assets. Moreover, business tools like accounting software will help keep track of lease data and financial documents.
6. Higher customer service expectations
Now that real estate leasing properties are becoming more prominent in ecommerce, clients are expecting better customer service like what they get from online shops and delivery apps. Hence, make sure your property lease business isn’t only aesthetic-focused but also customer-centric and technology-oriented.
2022 Priorities for Property Lease Businesses
The year ahead looks positive, with real estate leasing properties slowly recovering and continuing to thrive. To keep your business on top, make a habit of tracking emerging trends and adapting to them accordingly. You also need to focus on innovations while improving your structural designs, prices, and customer service.