Item 27 - Appeal Application Nos. 2020-03 and 2020-04 - Central Pointe Mixed-Use Development

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Chapter 3: Property Type Outlook early innings." But we can see the potential impact. Robotics will likely reduce the size of organizations and reduce the amount and type of real estate required. "Businesses will continue to get smaller due to technology and robotics. The most desirable talent in the future will be knowledge based and will need `omni- channels' to work across an organization and drive alignment across functions." We need to better understand how people are using space to really make a difference. Al will allow continual learning of how we use space, resulting in increased use of space. In the words of one interviewee, "Place plus space drives human behavior. We know this can enhance people's lives, improve productivity, improve mental states, improve health, and improve happiness." In the future, "space will shift from reacting to predicting work patterns," such as where to park based on your first meeting location of the day, or automatic desk reservations, both based on your digital calendar, or even voice -activated or sensor technology noting whether your meeting is over in the reserved conference room and now available to the next user. Despite excitement surrounding integrated technology and interconnected building systems and big data, one interviewee pointed out that "there is a continued disconnect of focusing on the long-term possibilities before solving today's realities." People are still challenged "to get the technology that we already have to work —to start a video conference call, share content, or collaborate virtually," but acknowledged that office environments that are responsive and predictive will inevitably be in our future as technology continues to be developed. Retail "When you're in the middle of a storm, you're not quite sure when it's going to end," said one interviewee who oversees leas- ing for a large portfolio of regional shopping centers, continuing, "Turning on a dime is tough when undergoing the kind of shift this industry faces." The shifting retail picture is notably more complex than other property types. The integration of new concepts, formats, chan- nels, and inventory management systems all cloud retail's future, as does a broader economy -wide shift from goods to services. As a result, traditional shopping centers are transforming into "consumer centers" with a new mixture of uses. Another con- sumer need met: Kohl's announced this summer that its stores will be Amazon return centers —and they will package and send back items for free. The era of "one size fits all" seems to be ending. Shopping cen- ters now have the ability to become hyper -customized, due in Exhibit 3-13 Retail Investment Prospect Trends ................................................................................... li Urbanlinigh-street retail* i S ti Lifeslylelentertainment centers Neighborhood/community � —shopping flpping centers A---k ., ^` s Outlet centers' Power centers 2006 2008 2010 2012 2014 2016 2018 2020 Source: Emerging Trends in Real Estate surveys. *Fourth year in survey. Retail Buy/Hold/Sell Recommendations Neighborhood/community shopping centers Urban/high-street retail Lifestyle/entertainment centers Outlet centers Power centers -j 3s.o Regional malls Buy Hold So 50.5% 51.8 50.3 49.2 0% 20% 40% 60% 80% 100% Source: Emerging Trends in Real Estate 2020 survey. Note: Based on U.S. respondents only. Opinion of Current Retail Pricing over Fairly priced' Neighborhood/community 26.0%W shopping centers Lifestyle/entertainment 34.5 centers Outlet centers 39.0 Power centers Regional malls 64.6% Urban/high-street retail 0% 20% 40% 60% 80% 100% Source: Emerging Trends in Real Estate 2020 survey. Note: Based on U.S. respondents only. Emerging Trends in Real Estate® 2020 69