A panel of economists at the Strategic Real Estate Conference noted that the multifamily market has undergone significant change, but the shifts may have created a number of opportunities for commercial property managers, according to National Real Estate Investor.
Renters would typically require 500 to 700 square feet of space per person in an office setting during the 1970s, but this has declined to approximately 200 square feet per person, one panelist explained. In addition, residential space has shifted significantly, according to the news source. In the 1970s, residential space ranged from 250 to 300 square feet per person, while that is more than 900 square feet per person now.
In addition, technology has increased exponentially, the news source noted. With continued improvements in these sectors, renters are able to put more information on computers and mobile devices, which allows for these people to have more space. Young renters are leading the charge.
"They don’t have a lot of stuff and they can live and work comfortably with one-third less space than we could," said Gunnar Branson, president and CEO of the National Association of Real Estate Investment Managers, according to the news source.
Continued demand for smaller spaces may allow for more property management companies to make smaller leases for properties, as more renters will be able to live in one area.