How Can Commercial Real Estate Investors Protect Their Property In The Digital Age?

With a growing number of employees working from home and  96% of people shopping online , protecting your commercial investment property is more important today than it has ever been.

Keeping commercial renters is becoming increasingly difficult, as more and more retailers shutter their doors to move toward an online profile. You need to think on a smaller scale and provide new ways to entice companies to stick with you even as times get lean for brick-and-mortar locations.

1. Invest In Properties With Multiple Uses

I think it is important to invest in properties that have multiple uses. I own a strip mall with a grocery store, restaurant, coffee shop and office space. There will always be a need for certain commercial space. Investors get into trouble when they have a property with one user who has a very specific use. –  Mark Ferguson ,  InvestFourMore

2. Position For The Small Footprint

Landlords are now faced with the end of the big-box comfort. Space in shopping centers must look toward smaller space offering. These must be geared toward strong specialty offerings and lifestyle uses. Traditional retailers will utilize space, just less. Making properties more tech capable helps immensely. Proper tenant clustering is paramount in the repositioning. Management keenness a is must. –  Michael J. Polk ,  Polk Properties / Matrix Properties

3. Be Flexible And Adaptable

As with any industry, it is important to adapt to change. Commercial real estate investors should be prepared to repurpose buildings, and always try to find the most relevant tenants to occupy their spaces to insure a tenant will thrive, be happy and stay in the lease longer. Traditional retail may be suffering in the internet era, but this makes way for new ideas like pop-up shops, co-working spaces and even made-for-Instagram museums. –  Beatrice de Jong ,  Open Listings (YC W15)

4. Pay Attention To Condition And Market

With any property, owners that maintain and update the space have a better chance to stay competitive and avoid vacancy. Also, the management company and/or owner needs to monitor market conditions and needs. Many commercial spaces require repurposing: co-working spaces and other creative ideas can make your property stand out to businesses big and small. –  Brian Lawton ,  Property Revival Realty

5. Create An Experience

Shopping online is purely transactional, as there is no embedded experience other than fewer clicks and nice graphics. People will leave their home for the purpose of a memorable experience that elevates and gives value beyond just the price of the transaction. Bonus: If the experience is good enough, the velocity at which it can go viral through social media platforms is at an all-time high. –  BJ Turner ,  Dunleer

6. Move To Multifamily Properties

They can start liquidating all of their commercial holdings and move their money into multifamily properties. There are just too many companies taking over the space like Amazon to compete. It’s not worth the risk of holding on. People will always need a roof over their head, so commercial investors are better off moving their money to multifamily assets. –  Engelo Rumora ,  List’n Sell Realty

7. Determine Highest And Best Use

It’s the question of highest and best use. In NYC, for example, there are currently plenty of opportunities to invest in hotels (admittedly, this would require certain sizable initial capital and partnerships), restaurant spaces, day spa offices, fitness club premises, doctor offices, dental offices, veterinarian offices, community facilities, etc. Mixed use townhouses will allow commercial use. –  Elliot Bogod ,  Broadway Realty

8. Stay Relevant

This may apply to all commercial investors at some level, but specifically for retail developers and landlords, clients of mine who stay flexible and keep their properties in conditions that support retail trends have enjoyed success with higher rents, forward-thinking retailers and a stronger customer base. Providing physical infrastructure and operational flexibility sets the property and the retailer up for success. –  Tiffini Connell ,  West Coast Commercial Realty

9. Reconfigure Your Tenant Base

Retail landlords can add in-line tenants that don’t compete with Amazon (aka hair salons, gyms, restaurants, etc.). Not always the most attractive tenants, but until we start trusting robots with scissors near our heads, the salon business should be in good shape. Office town landlords should focus on tenants in high-growth sectors that can’t execute their fast-paced strategy with the majority of their employees working remotely. –  Brad Johnson ,  EVERGREEN

10. Create Community And Belonging

CRE investors can protect their properties in an age where digital trends are shifting how we live, work and shop by differentiating their building brand by centering it around meaningful community experiences that create community and belonging. A building brand focused around shared, local experiences and deepening connections with neighbors through enabling technology commands a premium. –  Benjamin Pleat ,  Doorbell Communities

11. Be Creative In Your Product Offering

Commercial real estate investors must become more creative in their product offering. The old days of renting out for office use or walk-in retail is quickly fading away. Look at concepts such as WeWork that offer shared office space (which millennials seem to be flocking to) or look at setting up micro storage facilities — which will be more in demand with the growth of Amazon businesses. –  Ali Jamal ,  Stablegold Hospitality

12. Invest In Industrial Properties

Investing in industrial warehousing is a hedge against the online world. Products have to be stored somewhere — even if it’s not on traditional retail shelves. If you already own retail properties, see if you can change the mix of tenants to include restaurants or entertainment concepts that will continue to drive traffic. –  Chris Powers ,  Fort Capital, LP

– How Can Commercial Real Estate Investors Protect Their Property In The Digital Age?