How Contemporary Architecture has Transformed Commercial Real Estate

The aim of building something is usually to increase value- for the owner of the building as well as the surrounding community. To achieve this, commercial builds usually focus on timelessness as well as practicality. 

Commercial or public buildings maintain their value for a longer period of time than a residential building. However, architects and builders still need to focus on current trends and needs in order to increase long-term value.

Architecture has to have not just an aesthetic appeal, but it needs to evolve with environmental practices- the use of sustainable and durable materials has become more popular over time. Let’s take a look at how design trends in architecture have changed over time.

Sustainable Materials

We all know fossil fuels are a finite resource and, thankfully, it’s becoming increasingly common to behave as if this is true. This means upcycling materials or finding more sustainable construction materials for commercial real estate. 

Bamboo

Since bamboo is a grass, it grows much faster than a tree. This is why it’s a good choice for sustainable building. It can be crafted into a hardwood that resembles traditional wood flooring, but without the long growth time needed for a tree.

Cork

For environmentally-friendly flooring, cork is a great choice. Instead of flattening a forest to harvest this material, cork is made from just the bark of a tree. It can be removed without cutting down a tree, so the tree can grow new bark and the cycle can begin again.

Ferrock

Ferrock is an eco-friendly option for cement. It is stronger than cement and is made from iron-rich silica and waste steel dust. Instead of disposing of the steel dust, it’s combined with iron-rich silica to create an alternative to concrete.

Cement, Ferrock, and CO2

The Portland Cement plant produces a million tons of cement annually. While producing all that material, the plant emits 800,000 tons of CO2. Ferrock, in contrast, absorbs CO2 as it hardens. The CO2 strengthens the ferrock. 

Glass

Glass is 100% recyclable, making it an incredibly environmentally-friendly building material. Additionally, it can completely change the look of a building, helping it follow or set design trends through the decades. 

Insulated concrete forms

Made with concrete, polystyrene, and plastic web, insulated forms increase building strength, efficiency, and sound insulation. The use of cement forms dates back to WWII, but instead of using wood, we now have more sustainable options with better benefits.

Reclaimed wood

There’s been a movement toward using reclaimed wood in buildings. It can offer a rustic vibe without the work of ageing new materials. Reclaimed wood can be used for flooring, accent walls, and so much more. Giving new life to something is a popular trend in building that isn’t going out of style just yet.

Virgin Hotel Las Vegas may not have used real reclaimed wood on its exterior, but the wood facade gives a retro, mod look to a sophisticated property that offers all the amenities one could need or want. Wood juxtaposed with other finishes, such as metal, acrylic, and greenery can achieve just the right vibe you want for your commercial space.

Recycled steel

Glass isn’t the only building material being recycled in commercial development. Steel from other buildings or old cars can be recycled for future use while still maintaining its desirable qualities. Steel is used in myriad ways (structural beams, roofing, tiles, etc…) because it’s lightweight and moldable. 

Sheep wool

Say goodbye to traditional, itchy insulation and spray foam. Sheep’s wool is an alternative that is biodegradable and less cumbersome to work with. It’s flame and mold resistant and can absorb humidity as well. 

Not only are some of these materials better for the environment, but they require less maintenance over time. It’s cost-efficient and environmentally responsible.

Organic Shapes

The commercial real estate landscape has not only seen an increase in renewable materials but the use of organic shapes as well. Instead of conforming to square angles, four walls, and a roof, builders are opening things up for greater appeal. Organic shapes can increase the amount of natural light in a building, making a better working environment for employees. Structures that seem to blend with the world around them show that beauty doesn’t have to be sacrificed for function.

This inclination is popular in residential building as well; instead of houses that are chopped up and divided into individual rooms, the trend is to open up the living space so everything is connected and increases the appearance of space for any sized home.

Smart Offices

Other contemporary influences on architecture include making things work smarter, not harder. 

Energy Star appliances

If your commercial building includes break rooms with fridges, microwaves, and even dishwashers, invest in energy-saving appliances. You not only get a rebate for installing them, but you’ll save on usage costs over time.

Low-flow toilets

Another way to go green is to install water-saving toilets. A commercial building can have dozens of toilets, so going low-flow can save hundreds of gallons of water every year. 

Green rooftops

Creating a green space on commercial rooftops is a great way to insulate the building naturally. Planting a layer of vegetation on a rooftop can reduce ambient heat up to 5 degrees, improve air quality, and reduce greenhouse gas emissions. The Environmental Protection Agency suggests choosing between two types of green rooftop options: extensive or intensive.

Extensive Green Rooftop

Vegetation grows roots no deeper than four inches. 

Plants are lightweight and hardy.

All vegetation is low-maintenance.

Intensive Green Rooftop

Vegetation grows roots deeper than four inches.

Rooftop garden is comparable to a public park vs a residential yard.

Vegetation/rooftop requires structural support.

Vegetation is high-maintenance.

Regardless of the type of rooftop you choose, it will consist of the following layers:

  • Structural support
  • Vapor barrier
  • Thermal insulation
  • Root barrier
  • Drainage layer
  • Filter membrane
  • Growing medium (soil)
  • Vegetation

Smart thermostat

Combat fights over office temperatures by installing a smart thermostat. You can set it for comfortable temperatures during working hours, and reduce heating and cooling costs by changing the temperature when the building is unoccupied. Programming a thermostat can save money and increase comfort for employees.

Solar panels

Clean, solar energy is a great way to power a commercial structure. Or, it can supplement traditional electrical power. The use of solar panels can reduce electric bills by up to 75%, and the initial investment to purchase and install them has decreased significantly since they were introduced in the 1950s.

Contemporary trends influence everything from the raw materials used to the type of furniture in a space. And like most style trends, what’s old is new again in just a few years.

Never Wait to Buy Real Estate

With rising home prices, is now a good time to get involved in real estate development or investments?

A 2020 National Association of Realtors report indicates a 22% increase in home sales compared to 2019. What does that mean for you as a potential investor?

The Best Time to Buy a House Was 5 Years Ago

Although home prices are soaring in this current seller’s market, the low-interest rate trend can help offset the cost of the investment over time. Mortgage interest rates are historically low in 2021. As of July 2021, interest rates were as follows:

  • 30-year fixed-mortgage is averaging an interest rate of 3.03%
  • 15-year fixed-mortgage is averaging an interest rate of 2.31%

To find the best rates when investing in real estate, refer to a mortgage broker. You’ll need to have your current credit score, an idea of what your down payment will be, and an understanding of your debt-to-income ratio. These factors and more can affect your eligibility for a lower interest rate. With properties being snatched up in a matter of days, keeping accurate financial reports can make or break your chances of securing a good mortgage interest rate,. If you don’t have pre-approval for a loan, it can be almost impossible to get all the paperwork in order and make an offer before a property is under contract with someone else.

Why Real Estate is a Good Investment

Investing in real estate is usually better than investing elsewhere, such as in the stock market. No matter how the value of your property changes, eventually it will increase. 

While mortgage interest rates are great right now, costs to build are soaring. With shortages of raw materials and labor, not only does it cost more to build, the projected timelines seem to extend far into the future. In early 2021, we saw the price of lumber increase by 112%; yes, you read that right! 

Thanks to people spending more time than ever in their homes, the desire to remodel or build new has increased demand for supplies, causing prices to soar. That unpredictable trend put the lumber industry in a tailspin because their 2020 projections became wildly inaccurate and they weren’t prepared for the sudden building boom. Add to that the loss of workers due to social distancing practices and it’s hard to tell if the industry will catch up any time soon.

Regardless, if your income is secure, it’s a great time to invest in real estate. With higher demand comes the potential for higher payouts.

Things to Consider When Investing

Just because a property is priced right doesn’t mean it’s the right one for you. When you want to purchase a property, be sure you’re looking at it through the eyes of your potential client. Before you buy, consider:

  • Location
  • New Construction vs Existing 
  • Demand for Housing/Business Rentals
  • Residential vs Commercial Property

Your property should be in a desirable location for renters or buyers, and what you invest in should reflect current trends. Are more people looking for new builds or for a property that already exists and is ready to go? Are people looking to rent (potentially from you), or are they more interested in buying for their home or business? Do you want to be a property manager for residential or commercial rentals? 

Top Housing Markets in 2021

Popular locations in 2021 include the following states. However, if you’re not able or interested in property in these areas, talk with a real estate agent to determine what’s hot in your own state, county, or city. Residential versus commercial will also influence where it’s best for you to invest, so take the property’s use into consideration.

  • New Hampshire
  • California
  • North Carolina
  • Ohio
  • Indiana
  • Washington state
  • Wisconsin
  • Nevada
  • Massachusetts
  • Connecticut
  • Idaho

How to Get Started in Real Estate Investing

Whether you’re looking to diversify your investment portfolio, or just get started, real estate can be a good route to take. You might invest for future payout, or to supplement your current income now. Whatever the case, how do you get started in real estate investment or development?

Short-Term Vacation Rentals

If you’d like to start small, consider renting a room in your home for short-term vacation rentals. Via Airbnb or VRBO, you could see if acting as a landlord is for you, whether it’s just a room or your whole house. If you already own a second home, it’s a good way to start making it pay for itself by renting it out when you’re not staying there yourself. 

Long-Term Rental Properties

If you’d like to go a more traditional route, you could simply offer up a property you currently own for long-term rentals. Working with a property management company or doing it all yourself, you can earn additional income or at least have the property pay for itself via rental income. 

There are a variety of ways you can set up your rental property; maybe it’s parcelled out room-by-room in a college town or rented as a whole to a family. Maybe you invest in an entire apartment building and manage multiple units; just be sure that whatever you choose to do, you can manage unexpected expenses such as repairs or vacancies.

Real Estate Investment Trusts

Also known as REITs, these trusts are for investors who want to dabble in real estate without actually owning a property. A REIT is created via a trust, during which the investor’s (or investors’, plural) money is used to purchase an income property. These properties can then be sold for a profit. The trust must then pay investors 90% of the taxable profit, thus avoiding income taxes on the sale.

Properties purchased by REITs can include residential and commercial properties, and the transaction doesn’t require a realtor when it comes time to cash out. 

Real Estate Investment Groups

Referred to as REIGs in the business, these groups allow an individual the benefits of owning rental property without having to manage it themselves. REIGs do require capital, but a group of people goes in together like a mutual fund. With the funds, the group can purchase investment properties or build them from the ground up.

One of the benefits of participating in an REIG is that you’ll have rent protection in the event your individual rental unit is unoccupied. The group collectively manages all the units, and a portion of all rents collected are pooled for incidentals.

Online Real Estate Investments

Do you know there are online real estate platforms that can help facilitate the purchase and sale of properties? Capital is procured via crowdfunding, forming a group of investors. You can invest in a single project, or get involved in a whole portfolio. Online access means you’re not limited to a certain locale, and it’s easier to diversify your investments. You do need to meet certain criteria depending on the platform, so do your research to find one that’s the best fit for you.

Flipping Houses

Home renovation shows may make it look easy, but house flipping isn’t for the faint of heart. It can be a great investment, as it often involves purchasing the worst house in the best possible neighborhood. Flipping it gets the house up to snuff so it can compete with comparables and potentially allow you to turn a profit. This can be risky, so it’s important to have a reliable team or partner to help you calculate how much you’ll put into the property, how long it will take, and how much you can list it for when done. 

There are a variety of ways to get involved in real estate investment, no matter what your capital or where you live. 

Tips to increase sales lead generation through your real estate portal listings

Generating the lead through real estate portal listings
real estate portal listings

In a slow market, agents will need to maximize sales lead generation through their real estate portals.

Having worked in Online Real Estate Marketing for nearly 2 years I would like to share some points which I consider are vital for improving sales lead generation.

Continue reading “Tips to increase sales lead generation through your real estate portal listings”