Antenna Group’s Spaces team shares the top trends they foresee in 2024. What do you see shifting the real estate landscape in the year ahead? Drop us a line to talk about how Antenna can help you communicate the trends you will be making in your own spaces.
1. AI is an Architect’s New Personal Assistant — not a Replacement
As the use of artificial intelligence permeates many industries, architecture is no exception. This has resulted in a plethora of jaw-dropping, AI-generated images of futuristic office buildings and ultra-luxe estates that populate the internet. But contrary to speculation, the reality of AI’s role in rendering an entire industry obsolete is unlikely to take shape.
Applied during the project modeling phases of architectural projects, many third-party tools already incorporate AI to automate time-consuming tasks or rapidly analyze information. By automating manual data entries and other repetitive tasks—such as risk predictions and project estimates—AI can improve operational excellence. In short, by augmenting the project planning process, AI ultimately affords architects and designers more time to innovate. AI can also inspire new designs, as well as lead to more sustainable building solutions by leveraging existing data to perform energy modeling, predict energy performance, and more.
Fears of AI’s ability to replace architects are unfounded. Governing bodies in each U.S. state have not established standards related to the health, safety, and welfare implications of AI-planned or designed buildings. While AI-generated renderings may look beautiful, the development of safe and functional buildings demands substantial expertise in both structural design and engineering.
For these reasons, the human creative element in architecture must — and will — remain at the forefront.
By Jordan Rankin, Account Director
2. Multifamily Developers Take Co-Working Offerings to New Heights — Literally
It’s no secret that the pandemic reshaped work dynamics, creating the need for at-home co-working solutions. But with hybrid work models firmly established, multifamily developers are ushering in a new era of WFH amenities by embedding full-fledged co-working facilities right onto the high floors of new apartment towers.
In New Jersey, the luxury apartment development Hoboken Point caters to the modern ‘hybrid’ professional, offering a wealth of amenities including an expansive co-working space dubbed the Work Lab, which boasts panoramic views of the Hudson River. This nearly 5,200-square-foot private co-working center offers residents a professional work environment complete with conference rooms, comfortable seating, tech-enabled video conferencing, and an outdoor terrace for mid-day coffee breaks.
Meanwhile in Oakland, the upscale apartment high-rise 1900 Broadway features 70,000 square feet of headquarters-quality office space that can be scaled up or down to suit the needs of individual residents or start-ups. Whether a freelancer, a remote employee relocating to the area, or a firm looking to attract talent, these users have the option to curate their experience down to the last detail. Think turnkey office and co-working spaces, along with a variety of communal areas such as kitchens, break rooms, lounge areas, meeting pods, and on-demand conference rooms.
Gone are the days of multipurpose lounges with ‘Zoom rooms’. These new residential workspaces are carefully designed for professionals, prioritizing dramatic views, privacy, and the conveniences of modern technology — all just an elevator ride away from home.
By Phoebe Schmidt, Senior Account Executive
3. Inertia is the Dominant Trend Throughout the Real Estate Space
Oddly enough, the most significant trend we’re seeing in the real estate space is inertia.
In the past 18 months, the real estate market has taken a hit. With the Fed raising interest rates, borrowing costs have grown significantly, and real estate investors are finding it nearly impossible to secure financing. Meanwhile, once the cost of capital increased, property valuations were expected to decline—but most sellers have not yet shifted their price expectations, so precious little investment activity is happening.
Meanwhile, some four years after questions about the future of office first arose, answers are still few and far between. While office leasing activity has been more robust than the doomsayers might let on, even the tenants who have been leasing space in the past few years have been skittish; many are favoring short-term leases instead of longer ones as they postpone major decisions about their future office needs. Additionally, while there’s been much ink spilled about converting vacant office space into apartments, these complex projects require navigating a range of financial and logistical complications. Residential conversion may yet be in the cards for a fair amount of office space, but few examples have already materialized.
The market slowdown is equally pronounced in the proptech space. According to CRETI, venture capital for proptech decreased by more than 40% in 2023. In this environment—and a proptech landscape that has seen several firms go belly-up of late—many startups are battening down the hatches, pivoting their approaches to extend their runway and stall any fundraising activity until the investment climate is more favorable to them.
The Fed has indicated that it will be lowering rates in 2024, and that may well have a positive ripple effect across much of the real estate industry. But for now, the clear trend across the industry is companies waiting on the sidelines until the dust has settled.
By Shlomo Morgulis, Director, Spaces
4. Embracing Exclusivity: The Rise of Branded Residences in 2024
When it comes to luxury branded real estate projects worldwide, North America was the largest market in 2023. Nearly 40% of the projects in operation or the development pipeline were in the United States, while the European region accounted for just over 12% of the projects.
The ascent of branded residences within the domestic residential real estate market is undeniable, particularly evident in bustling metropolitan hubs like New York, Los Angeles, and Miami (or South Florida in general). The burgeoning trend reflects a paradigm shift in luxury living, where the convergence of renowned hospitality and lifestyle brands with esteemed real estate developers has given rise to a new era of exclusivity and refinement.
What distinguishes these developments is not only their lavish amenities and bespoke services but also their strategic partnerships with famous hotel brands, star architects, and designers. Collaborations with these well-known names make the properties more marketable for several reasons.
First, these properties provide residents with a rare opportunity to buy into the exclusive lifestyle offerings curated by renowned hospitality and lifestyle brands. The association with esteemed brands not only elevates the status of the property but also instills a sense of prestige and identity, attracting affluent buyers who seek to align themselves with these upscale brands.
Additionally, branded residences frequently benefit from prime urban locations, situated in prestigious neighborhoods or iconic landmarks, further enhancing their desirability and investment potential. Whether overlooking Central Park in New York City, the Hollywood Hills in Los Angeles, or the azure waters of Miami Beach, these properties offer not just a home but an enviable lifestyle in some of the world’s most coveted locations.
As such, the rise of branded residences represents a pivotal evolution in the realm of residential real estate, especially in North America, where the convergence of brand identity, architectural excellence, and curated lifestyle offerings sets a new standard for luxury living in the 21st century.
By Taylor Cavazos, Director
Have our previous predictions come to fruition?
Catch up on our Trends to Watch posts from the past three years to see:
Four Real Estate Trends to Watch in 2023
Four Real Estate Trends to Watch in 2022
Four Real Estate Trends to Watch in 2021