CPABC Industry Update Summer 2015 - BC Real Estate Industry | Page 12

Digital disruption... (cont’d)
a desirable place to work, not only for
the type of work it offers employees,
but also because of its office spaces.
Organizations that find an optimal mix
between traditional and innovative
workspaces will have a competitive
advantage. They will be using their
workspace more effectively and
efficiently, increasing productivity, and
employee engagement, and creating a
stronger brand that ultimately results
in more satisfied customers.

Omnichannel:
Transforming the Retail
Landscape
Even here, the effect of digital
disruption is felt. Consumers are driving
change in the retail industry due to
the amount of information they now
can access, thanks to technology.
The power is shifting from retailers to
consumers, and the implications for the

real estate industry cannot
be underestimated.
Over the past 15 years,
online retailing has
transformed the operating
models of traditional
brick-and-mortar retailers.
This has resulted in the
disappearance of some
venerable retailers, the
amalgamation of others,
and the need for others
to look for other ways
to survive the disruption.
Retail continues to
be a technological hotbed of
entrepreneurship and innovation in
both the storefront locations as well
as in the back office environment.
Consumers are increasingly taking
a non-linear path to purchase,
combining both traditional store
and Internet channels. This approach

The big picture for commercial real estate:
More change than any time since the Industrial Revolution
Employees work anywhere, anytime
Changing the space means more connected
place
OFFICE

 orkplace is a business enabler to collaborate
W
and drive productivity
Consumers can shop anywhere, anytime
Store networks are at the beginning of a major
shift

RETAIL

Empowered consumer driving new business
models
North America becomes increasingly
competitive
Not everything is moving offshore,
some re-shoring

INDUSTRY

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 igh tech and advanced manufacturing poised
H
for a rebound

I N D U S T R Y U P D AT E

defines the omnichannel environment
and has implications for retailers’ real
estate strategies in terms of store
locations, footprint, warehousing,
logistics, and fulfilment.
Consumers are doing their research
and homework well before stepping
foot into a physical location. This
ability to be armed with competitive
intelligence means buyers are better
able to negotiate, demanding cheaper
products and better service, and
retailers have no choice but to respond.

Technology has
Significantly Decreased
the Cost of Entry for
Online Retailers Compared
to New Brick–and-Mortar
Competitors
Online retailers can reach far more
global customers than any retail
location, no matter how many physical
outlets the latter may have. Online
sales are predicted to grow steadily to
US$370 billion in 2017, up from $231
billion in 20122. No longer does the real
estate mantra of “location, location,
location” matter; a website’s server can
be located anywhere without affecting
the site’s ability to reach all target
markets.