When Texas real estate developers consider new projects on the horizon, they may be influenced by the appeal of youth culture. Generation Z, which is the generation after the Millennials, includes people born in 1996 or later. While many of these individuals remain too young to be significant investors, buyers or tenants of commercial real estate properties, the oldest members are graduating from college, entering the workforce and developing their portfolios. In addition, youth appeal now can mean long-term viability for projects in the construction pipeline.
Some of the effects of youth culture may be seen in choices for retail developments. While much has been said about the rise of online shopping, young people continue to prefer mixed-use developments with a strongly walkable and urban feel even when they are located in traditionally suburban communities. These environments promote social gathering spaces that attract customers when online shopping does not. In addition, restaurants continue to be a primary driver of retail markets. Going out to eat can be an event that provides a unique social experience. However, food delivery services in the “gig economy” are also on the rise. Restaurants may consider expanded kitchen space and reduced dining areas in order to meet the demand for delivery.
Industrial development is also being affected by the rise in online commerce. As more people order products online, they want nearly instant delivery and availability. Therefore, more fulfillment centers and warehouses will need to be built more closely to residential centers.
A commercial real estate project can a highly profitable investment. At the same time, complex construction projects can cause disputes when costs run over budget, or the project is not completed on schedule. A real estate attorney can work with contractors, investors or buyers to protect their interests and resolve construction disputes in their favor.