You've probably heard the term "Shareconomy" floating around the lexicon, but do you really know what it is? The Sharing Economy (otherwise know as "Peer Economy," "Shareconomy," or "Collaborative Consumption") refers to the open-source nature of the ways we access goods and services. Essentially: AirBnB, Uber, or Snapgoods. As consumers we love the convenience and cost-efficiency of a Shareconomy, but how do these services affect the health of commercial real estate?
The Hospitality Industry Takes a Hard Hit, but Continues to Thrive: We all assumed that companies like AirBnB and HomeAway would be taking away business from hotels, what we didn't see coming was the $450 million that the hospitality industry lost to AirBnB. Despite the monetary hit, the demand for both hotels and AirBnBs are about the same . Zoning? What's That?: If your apartment doubles as an AirBnB, what should it be zoned as? Zoning, and many other regulations have come into question as building purposes become more fluid. In the beginning, Shareconomy services only made up a small part of the economy and had little impact on zoning and rental agreements. However as time goes on, this new way of making money challenges current rules and can step into legal gray-areas. Investors Can Now Bypass Traditional Lenders: Crowdfunding has made it much easier for people to raise money for just about anything, and that includes real estate. For instance, RealtyMogul is a crowdfunding source for real estate investors; an "online Real Estate Investment Trust ("REIT") designed for diversification, cashflow and appreciation," according to their website. With resources like this, people can skip banks altogether when it comes to investing. Shareconomy Innovation is Snowballing: If you thought the Shareconomy was just a fad, think again. We started out being able to temporarily rent houses for our vacations, and now people are able to rent commercial kitchen space, office space, and even someone's personal Wi-Fi connection. The more that the freelance mindset takes over, the more people feel they can be a part of it and begin to innovate with their own ideas for services. Bottom Line: The Shareconomy is the child of technology and the savvy mindset that resulted from the Great Recession. Technology will continue to get better, as will the Shareconomy; however, as new ideas come to fruition, so do new problems like taxation. The CRE world, much like the Shareconomy, must learn to innovate and roll with the punches. How have you seen the Shareconomy affect CRE? Let us know in the comments below! Sources: AirBnB Uber Snapgoods Homeaway The Impact of AirBnb on Hotel and Hospitality Industry Airbnb Is Thriving. Hotels Are Thriving. Uber, Airbnb and Consequences of the Sharing Economy: Research Roundup Airbnb has Removed 2,570 Illegal Listings from NYC, but Housing Advocates Say it's Not Enough RealtyMogul What You Need to Know About the Sharing Economy Can The ‘Airbnb Of Kitchens’ Give Local Food Economies A Boost? A Look at Coworking Spaces, and Why it Matters to You Fon Why Millennials Understand the Future of Work Better than Anyone Else All Eyes on the Sharing Economy Millennials: A Financial Mindset Shaped by Recession Top 6 Tax Tips for Sharing Economy Freelancers Street Culture: Startups Bring the ‘Sharing Economy’ to Commercial Real Estate
0 Comments
Two weeks ago Valbridge | Kansas City helped the Rosedale Development Association (RDA) clean up Fisher Park in Kansas City, Kansas. The experience helped to shed light on the redevelopment efforts that RDA and other community members are making to Rosedale and the surrounding areas. RDA's goal is to better the lives of all Rosedale residents and advocate for community improvement across the board. To learn more, we spoke with RDA's Healthy Kids Program Director, Erin Stryka. Valbridge | Kansas City: "Thank you for agreeing to speak with us! It was really fun helping you guys out with the trails. Could you tell me a little bit about the state of the community right now?" Erin: "No problem, and we appreciate the help! Volunteerism is what drives our organization. Right now in Rosedale the community members are really excited because the Rosdale Community Survey has been completed and the Rosedale Master Plan has just been drafted. The community has been a vital part in the planning process and remains incredibly engaged and interested in the changes that will happen in the next few years." Valbridge | Kansas City: "So what are the next steps in the planning process?" Erin: "The next step is getting the plan adopted by the commission. The goal is to make sure the community remains involved in the process of doing this." Valbridge | Kansas City: "That's awesome! So what's something that you personally are really excited to see happen in the community?"
Erin: "I was really excited to see how much people care about our park system here in Rosedale. With this kind of support we'll be able to do some great work. We have three city parks, and one park that's maintained by a church, so making sure all of them are well maintained is a huge undertaking. It's nice to know that we have so many people willing to help." Valbridge | Kansas City: "Definitely. Is there anything else you would like to say about your organization before we wrap up?" Erin: "Yes, I would like to let everyone know that Rosedale Development Association relies heavily on the community and volunteerism. Volunteer efforts are how we are able to improve the community and the lives of people living there. We really appreciate groups like Valbridge | Kansas City and other companies who are willing to sacrifice a few hours to community improvement." We would like to thank Rosedale Development Association and Erin Stryka for letting us work with, and get to know their organization. For more information on RDA, or if you would like to volunteer, please visit Rosedale.org. |
|