The Hudson Valley is experiencing an era of unprecedented economic growth. Development projects continue throughout the region while economic indicators point upward. Even then, it is only a matter of time before the regional commercial real estate market begins to follow the trends that have been observed across the United States as a whole.
Expect to see a wide range of new technologies and design features and functions. Some developers are renewing old shopping malls and corporate parks into stunning new mixed-use developments, and creators of industrial space are anticipating major impacts from new technologies such as autonomous vehicles and the use of robotics in warehousing.
These sorts of ongoing technological evolutions are opening up brand new markets and industries with a significant amount of future potential, while also changing the way developers design and construct commercial space.
As the Hudson Valley”™s economy continues to expand, companies are increasingly finding themselves jockeying for space in the area”™s commercial real estate market. Finding their niche requires them to keep up with the constant evolutions of the industry.
For example, many commercial real estate developers across the nation are beginning to change the way they approach the creation of Class A office space. Today”™s development firms are looking at ways they can leverage existing spaces to create high-quality, sustainable office environments that better fit with tenants”™ workflow and employees”™ needs.
Based on trends we”™re seeing in commercial real estate, the office buildings of tomorrow may include a diversity of mixed-use components, like pop-up restaurants or transformational spaces. The new incoming crop of office buildings will feature pervasive technological integration and condominium-style amenities, like yoga centers and catering kitchens.
In addition, as online shopping becomes one of the predominant forms of retail, the footprint of traditional stores is continuing to shrink. This is freeing up commercial space for new and creative types of usage.
Such innovative reuse of traditional shopping space is already beginning in the Hudson Valley.
In one example, Danone North America moved its headquarters to the Source at White Plains, an active shopping mall. Danone”™s new headquarters will allow shopping center visitors to look into its tasting kitchen. Employees at the office will have the opportunity to contribute to local businesses based in the building.
In spite of the nationwide economic boom, there are several indicators that companies and commercial real estate investors should be keeping a close eye on.
Interest rates, which have held at historically low levels since the end of the global recession, are likely to begin rising more steadily in 2018 under the new directorship of Federal Reserve Chair Jerome Powell.
While unemployment levels in the Hudson Valley are steadily decreasing, our neighbors north of us ”” Greene County and Columbia County ”” saw slight upticks in unemployment, according to recently released data from the U.S. Department of Labor.
Additionally, a lack of skilled laborers could affect the rate at which developers are able to construct new office space. Booming real estate markets around the country, particularly in New York City, could draw construction workers into higher-paying metropolitan areas.
As businesses in the Hudson Valley continue to grow, they are having trouble filling employee vacancies with qualified candidates. These challenges may stymie business growth, until the region can identify ways to attract a more qualified and diverse talent pool.
Recently announced import tariffs on steel and solar panels could also adversely affect the region”™s further economic development in 2018.
In response to the opportunities and challenges presented by the region”™s active commercial real estate scene, the Hudson Valley Economic Development Corp., in coordination with the Hudson Gateway Association of Realtors, is hosting a first-of-its-kind event. “Hudson Valley Visionaries: A Look into Commercial Real Estate,” will afford attendees with a closer, insider”™s look at how Hudson Valley”™s commercial real estate scene will change over the
coming decades.
The event will feature some of the region”™s most significant players in the commercial real estate industry. These “visionaries” from around the region will offer their insights into current trends that will reshape the Hudson Valley business landscape for years to come ”” helping local business leaders plan more effectively for future projected needs.
“Hudson Valley Visionaries: A Look into Commercial Real Estate” convenes on April 12 at the Nelly Goletti Theater at Marist College in Poughkeepsie. To register or for more information, go to hvedc.com.
Laurence P. Gottlieb is president and CEO of the Hudson Valley Economic Development Corp. He can be reached at lgottlieb@hvedc.com.
