Big companies such as Amazon, Airbnb, and Uber have started to disrupt the real estate industry, which will end up being crucial to the future of real estate investment. Some of these disruptors include:
- Regulatory and political disruptors
- Demographic disruptors
- Technological disruptors
One of the most impactful disruptors is technology – that is, the cyclical change the real estate industry is used to running as, is forced to change its structure. The rise of digital commerce and our economy becoming more subscription-based is impacting both retail, office space and residential. Ultimately, “This shift in demand has been responded to on the supply side by companies such as Amazon and WeWork, who have been able to disrupt an asset-heavy industry by being extremely well capitalized and willing to sacrifice short term profits for long term market share.”