THE IMPACT OF NEW TECHNOLOGIES ON SPACE, OPERATIONS AND REVENUES
7. Affects of E-Commerce and the Internet on the Utilization of Space Industrial
E-commerce will have a material impact on retail real estate, weakening regional malls and power center locations. Depending on where the real estate is in the supply and value chain will determine future real estate product and firm success. R&D properties will benefit from the new technology due to rapidly growing high-tech, bio-tech and information related firms (ULI). Multifamily Multifamily residential real estate will be impacted by tenant demand for high-speed Internet access for their home computers. Apartment owners are going after the high- tech employee market due to their high propensity to rent, use of the Internet and disposable income. The majority of high-tech renters are young and single, or married with dual incomes and no children. They want access to the Internet and do their apartment search and purchases on-line. Due to high mobility rates, 80% of the high-tech workforce is renter by choice. The average age of these renters are 33 years old and are very technology literate, 71% have access to the Internet (Walsh). Since high-tech employees work long hours, they value close proximity to the company. Some multifamily REITs have adopted acquisition and development strategies to target projects in close proximity to high-tech corridors; and target projects in close proximity to major employers such as AT&T, Chevron, Oracle, Cisco Systems, HP, Microsoft, Pacific Bell, and PeopleSoft. The high value living space will be configured to meet home office demands, centering around computer and telecommunication requirements. Apartment units will need to be adequately wired and retrofitted to meet market demand (Walsh). Owners will be required to provide reliable, high-quality, high-speed Internet service, or loose residents. At some point, high-speed Internet access will be a “fundamental apartment amenity.” Most apartment owners will be providing their tenants high-speed Internet access via a Digital Subscriber Line (DSL), although wireless technology may be the only options in some locations. Wireless eliminates the need to fund wiring to each individual apartment, and provides a non-disruptive approach to Internet access. Multifamily developers have four alternatives for wireless communications: satellite, radio, antenna/dish, campus-based wireless network or consumer-based wireless technologies. A combined approach may be the best solution – running a T1 to the building then installing a wireless LAN and connected via the WAN to the Internet. The wireless technology is still too new for broad based implementation (Schwartz). Companies are now advertising on websites such as SpringStreeet.com, apartments.com and Rent.net. Owners are also becoming creative by developing electronic brochures that can be e-mailed as an attachment, including site photos, prices, features and floor plans. An Internet business plan is critical for apartment owners and managers to attract high- tech employees. Retail Based on a recent real estate survey, 80% of the respondents predicted that e-retailing will decrease demand for shopping centers over the next ten years. New technologies and systems will improve the speed and convenience of Web shopping. Web access is projected to grow from 34 million people in 1999 to an estimated 53 million people by 2003. Within a generation, most homes will be web-linked and most people will be Web literate (PriceWaterhouse). The threat to traditional freestanding shopping malls comes from the emergence of the Cybermall. Now retailers do not have to stock as many goods on their shelves. In the future, tenants in retail shopping centers may introduce “concept” stores, a place to show goods then computerized orders in the store or from a personal computer over the Internet (London). The Cybermall will eliminate proximity as a determiner to where a consumer may purchase certain products. The traditional measurement of consumer demand by geographical market area is being irretrievably altered by the Internet. Not only will traditional stores be downsized, but actual purchases will be made outside the shopping center, eliminating the ability of the landlord to collect percentage rents on sales volumes (London). Higher supply and lower rental income will result in lower returns for retail properties in the future.
Khidmat Menaip Assignment kerana kesuntukan masa, kekurangan buku rujukan dan takde idea Klik Sini or dapatkan contoh Assignment di Sini