As the commercial real estate market braces for a shift in 2025, upcoming trends in artificial intelligence (AI) and automation are set to significantly influence business practices across various sectors. John Famiglietti, Principal at Commercial Connection LLC, highlights several key trends that are anticipated to shape investment and development over the next year.
In recent months, decision-makers within the commercial space have largely adopted a wait-and-see approach, postponing substantial commitments amid uncertainty regarding the new administration's policies and their potential impact on the market. Famiglietti forecasts a gradual return to a more conventional landscape as clarity emerges in 2025.
The industrial property sector is expected to remain robust, driven in part by the trend of reshoring, which entails relocating certain industries back to domestic fronts. This movement is predicted to heighten demand in an already tight industrial market, indicating a strong focus on enhancing supply chain resilience through localised manufacturing.
While the office segment may show signs of recovery, Famiglietti suggests that this rebound will hinge on employer-led mandates encouraging employees to return to traditional work environments rather than continuing with remote arrangements. This shift could impact office space requirements as companies adapt their strategies.
In contrast, the retail landscape remains complex, with divergent outcomes for various businesses. Famiglietti notes that advancements in AI and big tech are likely to transform consumer shopping behaviours and retail operations. He anticipates that traditional businesses, like drug stores, will seek innovative strategies to reinvent themselves and seize new opportunities, differentiating between those likely to thrive and those facing significant challenges.
The interplay of technology with retail practices is expected to enable both retailers and consumers to react effectively to potential policy changes from the incoming administration. As Famiglietti remarks, "Nothing stays the same, and this coming year will be no different." He optimistically anticipates that looking back at 2025 will bring a sense of relief, much like the sentiments that followed the challenges of 2024.
With these insights, it becomes increasingly evident that AI and automation are poised to play pivotal roles in not only reshaping specific sectors but also redefining broader business practices in the ever-evolving economic landscape.
Source: Noah Wire Services