Economic forecasters are predicting positive news for the commercial and multi-family residential real estate markets. Multi-family residential construction is booming; vacancies will drop and rents will rise in office buildings, shopping centers, factories and warehouses; and as job growth continues, activity in the retail and office sectors is expected to rise.
Commercial landscaping activity (which includes multi-family residential communities) should experience a resurgence over the next several years. This growth is expected to motivate those property owners/managers who were holding off on landscaping improvements to make those enhancements to remain competitive.
A recent issue of Turf Magazine identified the Top 5 Commercial Landscape Trends for the next decade and beyond. Here’s a summary of where Turf says owners and property managers will be spending their landscape improvement dollars.
More Time is Being Spent and More Work is Getting Done Outdoors
Building owners, property managers, and multi-family associations today want to do everything they can to attract tenants/visitors/residents and that includes providing spaces with more meeting/gathering areas.
Consequently, outdoor meeting areas are growing, giving properties a differentiation factor from nearby competition. And providing wireless internet at outdoor sitting and gathering areas expands the work space, taking employees from their desks to the outdoors for work, as well as play.
LEEDing the Way
Green practices and energy efficiency will become even more of a priority in the 21st century and the focus on new green building design will shift to greening existing buildings. LEED is a consideration in landscape maintenance practices as well. As cost becomes less of a deciding factor in the decision-making process for owners/managers, landscape maintenance companies with a greener approach to their operations will be a more attractive alternative.
Efficient Water Use
Water conservation continues to be a major issue, and responsible water use has become a hot topic for commercial properties. One easy way to conserve is to incorporate more drought resistant, native plantings into an overall design. Container planting is another way to provide colorful, vibrant plant displays that minimize water usage.
Closer monitoring of automated irrigation will be important to maximize water usage on a large property. Installation of rain sensors that limit the frequency of operation, conversion of spray head systems to drip lines, and regular irrigation system checkups to look for broken sprinkler heads, clogged lines or other irrigation problems all contribute to a more responsible use of water and a greater return on the investment in an automated irrigation system.
Multifamily Properties Are Booming
According to the U.S. Census Bureau, and the National Association of Home Builders, construction of multifamily residences, specifically structures with five or more units, has been growing faster than construction of single-family homes. Millennials who show a preference for living in walkable, urban areas continue to feed this demand because a majority of today’s millennials rent vs. buy. Baby boomers are also selling their homes to rent apartments within walking distance of downtown areas or moving into areas for active older adults.
Because of this growth, the multifamily market is becoming even more competitive. Besides a great location, people are looking strongly at the amenities each site offers as a major driving factor in their final decision. Curb appeal, landscaping, and usable outdoor spaces have an even greater impact on that decision-making today.
Investment in the Design Process
As a result of the popularity of interactive social media and sites like Pinterest and Houzz, commercial property managers and building owners are exposed to trends, concepts, and design ideas that they can share with their landscape architects to more specifically communicate their preferences. This is making the design process even more of a team effort between architect and owner resulting in outdoor spaces that are even more creative, customized, and reflective of the trends in any specific marketplace.
A positive economic forecast is generally good news for everybody, particularly in the real estate business. It will allow owners and managers who have been extremely budget conscious during the recession to once again look to contractors who provide higher quality maintenance and more creative property enhancements to help them separate their properties from their competition.