What Commercial Developers Need to Know to Attract Companies with a Millennial Workforce

From the givers to the receivers and the creative conceivers, the retail industry is still all about people.

Retail today is of the people, by the people, for the people. That means despite a rapidly changing retail landscape, including high-tech innovation, you’ll find smart brands staying focused on the No. 1 priority. From social media influencers’ authentic content creation and connection approach to the dawning of a new consumer generation to critical employee retention efforts to even AI helping to deliver hyper-personalization, retail is still about people first and foremost.

Creator Commerce

The rise of social media and digital commerce has spawned the role of the influencer as consumers look to experts for advice on products and services. Forbes even went as far as to say these content creators “are the cultural leaders of the 21st Century.” Well, we can at least agree that the advancement of online media sharing has democratized retail marketing and consumption: easy access to the Internet and social media means anyone can create and share content around the world, including about products, goods and services.

“Retailers should embrace these creators and treat them as part of the community for the brand,” writes Shelley Kohan. “Content creators provide a new way to introduce products with authentic recommendations, and they help connect people with products they’ll love based on their shared tastes or expertise.”

The creator economy market is projected to double in size over the next five years to $480 billion by 2027, according to Goldman Sachs.

Eyes & Ayes on AI

If one promised improvements to the shopping experience, interactive online features to help with service requests, and increased efficiencies with regard to content creation, retailers would respond, ‘Where do I sign up?’ For those reasons and more, they’re increasingly adopting AI, which Forbes calls “the most significant disruptor in retail since the advent of online shopping.”

“Micro-segmentation and building robust communities are two ways marketers build brand assets to grow customer loyalty,” Kohan asserts. “[With AI] brands are figuring out how to deliver hyper-personalization in a relevant and non-creepy way.”

Preparing for Gen Alpha

The term ‘Next Gen’ has been widely used for the latest, cutting-edge version of products and technologies, but now is the time for retailers to begin preparing for the literal next generation of consumers: “Gen Alpha.” How will these digital-first natives be different in their preferences, expectations and habits? Brands emphasizing fun, humor, sensitivity and awareness, creative outlets, and expressions of individuality will be successful, according to Leslie Ghize, executive vice president of Doneger | Tobe.

“The volatility of Alphas’ formative years – pandemic, climate crisis, loneliness, financial insecurity and societal division – will inspire them to intentionally craft healthy, happy existences before they hit late adolescence and adulthood,” she tells Forbes, adding that they will show proactive tendencies versus the reactive of Millennials and Gen Z.

“And retailers should never forget their most important asset, their people,” said Vince Vitti, infinitee’s VP, Business Development, and the firm’s recruitment marketing guru. “As brands strive to achieve that authentic human connection with consumers, they’ve got to give the givers in that equation a highly engaged, rewarding and inclusive work environment. Employee well-being has never been more important in this challenging labor market.”

Increased return to office volume is a most welcome commercial real estate sign as more office decision-makers choose to give workers a why, not the whip.

Return to office (RTO) is not just a CEO talking point or corporate plan anymore. It’s increasingly becoming a reality. Just check the numbers: February foot traffic at office buildings nationwide was nearly 19% higher year-over-year, according to an AI-enabled office building index that tracks such volume via cell phone data in some 1,000 office buildings across the country.

Overall, there’s still much work to do, however, for office managers, owners and investors to once again feel optimistic about occupancy and, for the latter two, the resulting cash flow and, in turn, capital appreciation of their commercial real estate assets. Office visits were still down 31.3% from February 2020, “the nation’s last ‘normal’ in-office month before COVID changed everything.” Yet, that gap narrowed by more than 5 percentage points since the month before.

The story on returning to the office initially focused on the who, when and where for obvious reasons, but the what and why factors are coming to the fore. Specifically, what is the form of office amenities and surrounding attractions and appeal that provide the why, the motivation, for workers to return?

Location, Location, Vocation

Even a real estate novice knows the importance of location. Regarding office values, RTO becomes a factor as well. After all, tenants are the lifeblood of income-producing real estate. The tech and finance sectors may be boosting RTO volume and are therefore elevating the outlook for office properties in cities with a strong presence from those industries.

Miami and New York continue to “lead the post-COVID office recovery pack,” according to Placer.ai's data based on their strong tech and financial tenant representation, respectively. Visit volume to Miami buildings was down only 9.4% compared to February 2020 and up 23% year-over-year. New York office traffic was down 14.5% compared to right before the pandemic and up 21.7% year-over-year. Dallas, Atlanta, and Washington, D.C. also outperformed the nationwide baseline of -31.3% difference since February 2020.

Kaplan adds retail to tech and financial services as the only industries expected to continue to push for a full return to the office. The reasons cited are that leaders in those fields tend to spend more on commercial real estate and are "the most adamant" that remote work can pose security risks.

Quality Leads to Quantity

To play off the real estate investment phrase ‘flight to quality,’ employees are more likely to return to quality, as in newer Class A or creative office buildings that offer versatility, agility and a well-amenitized, ESG-focused, engaging place for authentic coworker connections to happen and company culture to grow.

As a result, Class A buildings posted a vacancy rate nearly 3% lower than the national average in 2023. On the creative office side, rent in buildings close to the Atlanta BeltLine’s eastside increased by 189% from 2012 to 2023 as opposed to rent growth of 49% overall for metro Atlanta during that same period, according to the Atlanta Business Chronicle.

“We spend most of our time as brand builders and storytellers strategizing on how to attract consumers, but this is another vitally important target audience, one that we often call a company’s greatest asset,” said Vince Vitti, infinitee’s VP, Business Development. “From dynamic workspace design to an emphasis on office connections to surrounding restaurants, entertainment and recreational options, we can continue to elevate the office in service of both workers and owners.”