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Generation Y and World Domination
This edition of the BBG Quarterly newsletter broadens the scope of our industry’s understanding of the mega impact of Millennials on commercial real estate. Their influence on all CRE sectors “is the singular most dominant trend” today and for many years to come, according to the "Emerging Trends in Real Estate 2014" report by PwC and the Urban Land Institute. 

We submit that the impact is even greater than what’s commonly discussed. This group’s values and influence are redefining the American Dream, or at least switching out its familiar trappings including home and car ownership. That’s not merely influential; it’s iconoclastic.

Through a CRE lens, BBG Quarterly provides a glimpse of what the new American Dream looks like. 

Diane Butler, CEO
Millennials Taking Over One Office Building and Apartment Community at a Time
Already the largest generation by head count on the planet, the Millennials — also known as Generation Y — will be the workforce majority by next year and by 2030 will make up 75 percent of the labor pool, according to the U.S. Bureau of Labor Statistics. With its growth and dominance, this group of 20- and 30-somethings will impact commercial real estate “with a noticeable force,” according to the Emerging Trends in Real Estate 2014 report, redefining the American Dream at the same time.
Renting as a lifestyle choice. 
Millennials form part of a  new breed of renter, along with some empty nesters and retirees, who favor the flexibility and convenience of renting. Among Millennials, student loan debt and the real estate woes of their parents may be two of the forces driving this shift. Forsaking the safety of suburbia for the excitement and density of city life, Millennials are also behind the push for mixed-used urban or New Urbanist developments with walkable access to retail, restaurants and recreation.
Highly mobile with fewer cars.
Previous generations of Americans revered the automobile as a symbol of freedom. But Millennials want freedom from car ownership and its downsides, including tiresome commutes. Millennials enjoy living and working in close proximity, in compact communities with public transit.
Job flexibility trumps stability.
Millennials thrive in workplaces that offer flexibility and freedom, looser social media policies, and open spaces that encourage collaboration and socialization. And surveys show they don’t stay put but switch jobs every two years on average. To attract and retain Millennials, office spaces must support the mobile, at-home and after-hours worker. Young jobseekers also take into consideration the relative greenness of prospective employers. 
Social consumption vs. conspicuous consumption.
Even Millennials with money tend to prioritize the experiential over the material. Despite doomsday predictions for brick-and-mortar stores, these savvy online shoppers still flock to physical retail environments, bringing increased expectations for novelty and opportunities for social sharing. The ULI/PwC report recommends that retailers constantly reinvent themselves and keep refreshing their look and atmosphere with changing décor and pop-up shops. Retailers must also accept the reality of merging channels by adding supply chain capabilities and space so shoppers can pick up items ordered online.

BBG takes over, too
We’re all over the map (in a good way). With new offices in Kansas City, Chicago and San Diego, and plans to expand in 2014 to the Northeast and Pacific Northwest, BBG’s coverage extends from coast to coast specifically to help clients across all sectors expand their business as well.  
Bisnow profiles CEO Diane Butler
Bisnow dubbed BBG’s CEO Diane Butler a CRE “Power Woman” who “thrives in the center of action.” If you’ve ever wondered what drives Diane, this article provides some insights.  
Sealed a big deal
BBG worked on one of the largest transactions of 2013 involving a retail portfolio of 980 properties.
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