As a CRE professional, it’s important to take note of the latest trends in commercial real estate to better understand how to maximize the value of your next transaction. It’s clear that sustainability is a consumer focus that is here to stay. According to recent research, consumers are even willing to pay 9.7% more on goods that are sustainably produced or sourced. How does this affect commercial real estate opportunities?
We’ve previously investigated green real estate trends, and how more GPs are investing in retrofits and other sustainable practices that lower energy consumption in their buildings. But a surprising sustainable real estate opportunity is beginning to emerge: the secondhand market.
Thrift stores and other secondhand stores are rising in popularity. Here, we will take a closer look at what you need to know about this CRE opportunity and how you can take advantage of this increasing demand.
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Secondhand But Not Second-Best
Sustainability in retail is nothing new. “Recommerce,” or the buying and selling of previously owned goods, has been around for decades but in recent years, we’ve seen the younger generation increasingly interested in sustainable consumption. Valued at an estimated $188 million in 2023, the recommerce industry is projected to reach $276 billion by 2028.
Consumers value thrift stores because they are interested in clothes, electronics, and jewelry that might be considered luxury items, but because they are secondhand, prices are significantly reduced. Gen Z in particular are the largest contributors to the secondhand market, with 30% of survey respondents saying that they view “pre-loved” clothing and accessories as more fashionable.
Technology is helping to fuel the secondhand market’s rise in several key ways. If you’re investing in a secondhand retail store, consider partnering with an online platform like ThreadUp, Poshmark, or Amazon Warehouse so that you can reach a wider audience and sell your products online.
Technology is also useful for authenticating these thrifted items as well. Some luxury retailers are embedding their products with RFID stickers so that their authenticity can be verified upon resale. Leveraging social media to your advantage is another way to capitalize on the popularity of the secondhand market, and many secondhand retailers have begun livestreaming to showcase their latest secondhand fashion finds.
Covercy Will Help You Keep Up with Rising Secondhand Demand
The future of the secondhand market looks bright, so CRE professionals need to ensure they’re utilizing the right tools that can help them maximize their success. That’s where Covercy can help.
We’re an investment management platform that’s the first of its kind to seamlessly integrate comprehensive banking features into our software so you can simplify your entire CRE process. That means you can easily process payments through ACH, including complex distribution payments, and even earn interest on your uncalled capital.
Additionally, our robust investor portal allows you to communicate with investors, keeping them engaged and informed at every step of the transaction. Share secure documents, create reports, and take a look at industry insights with our AI features.
Our platform is revolutionizing commercial real estate management and saving you time and frustration so that you can focus on your next investment. The secondhand market is a promising opportunity for CRE professionals who are interested in appealing to younger consumers.
If you’re ready to see how Covercy can help you with this emerging market, book a free demo of our platform today.