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EDITORIAL

Three Myths About Millennials that Impact

Commercial Real Estate

Nick Romito
CEO & Co-Founder
VTS

lot has been said about millennials, the buzzworthy County, San Francisco to across the bay, Manhattan to the outer
group of people born between 1980 and 2000. That’s be- boroughs and so on. Additionally, retail owners have a huge
A cause this group makes up opportunity to set up shop in
the largest generation in American more affordable locations that
history and their spending power still attract millennial spending
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is astronomical. Millennials are the power. This is especially true of
new movers and shakers, and that’s suburban areas that feature a
why companies across industries small ‘downtown’ area.
(commercial real estate included)
have been trying tirelessly to nail Myth #2: Millennials are Lazy
down a universal persona for this Millennials aren’t lazy couch
group. The result? A multitude potatoes playing video games in
of misconceptions, numerous their parent’s basement. While
stereotypes and a whole lot of some might still live at home,
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pigeonholing. the reality is that millennials are
Millennials have been called quickly taking over the workforce,
everything from lazy and selfish to hard working and community and their way of doing things will become the new norm in
minded. While much of this is just noise, the truth is that millen- no time. Companies around the globe are vying to attract
nials are a unique group because they are the first generation to millennials, and they often use their workspace to seal the deal.
grow up with technology, shaping them into the on-demand, There are a number of lifestyle factors that impact what the
instant gratification generation we know and love. Right now, millennial-friendly workspace looks like. First, millennials don’t
millennials have approximately $200 billion in purchasing power keep to the standard 9 to 5 schedule. Some come in early, others
(that number will only increase as the generation ages) and arrive late, but the majority work much longer days, which means
by 2020, they will make up roughly 50 percent of the global the office should feature amenities that keep employees com-
workforce. That’s why it is critical for leaders in commercial real fortable and make them feel at home. Spaces with gyms, com-
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estate to understand millennial wants and needs without getting fortable seating areas, game rooms and fully stocked kitchens
caught up in all the myths and misconceptions. have become popular. Second, millennials enjoy collaborating
with others and see value in teamwork, so kiss cubicles goodbye,
Myth #1: Millennials are Diehard Urban Dwellers tear down walls that divide up spaces and swap out old wooden
As millennials flock to urban areas, we’ve come to assume that doors with frosted glass panels. Finally, this group is tech-savvy
they’ve set up camp and are staying for good—but that’s not and expects their workspace to be up-to-date. Landlords should
necessarily the case. According to a survey by ULI, 60 percent of ensure that their spaces can support any and every technology.
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millennials expect to live in a detached single-family home within Many buildings have even adopted smart home systems to reg-
five years. What’s more, 75 percent of millennials say they plan to ulate heating and cooling, and automatically control lights. Not
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get married, which has historically driven suburbanization. Even only does this impress millennials and keep them comfortable
though millennials are getting married and having kids later in whatever hour of the day they’re working, but it can also save
life, it’s still a journey many intend to take and could promote a buildings money on utilities.
suburban exodus.
Ultimately, that means we shouldn’t write off suburban Myth #3: Millennial Shopping Habits are the Death Knell for
office spaces just yet. In fact, we’re already seeing office spaces Brick-and-Mortar Retail
following millennials from cities to suburbs—from L.A. to Orange There’s no denying that ecommerce has changed the way we

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