For years, the focus of commercial real estate (CRE) marketing has been on baby boomers, Gen X, and more recently, millennials. But a generational shift is happening in real time: Gen Z – born between 1997 and 2012 is stepping into the market. This tech-savvy, socially conscious, and entrepreneurial group is no longer just shaping consumer trends; they’re influencing how commercial spaces are built, leased, and activated. Whether launching startups, opening creative studios, building wellness brands, or expanding their online ventures into brick-and-mortar footprints, Gen Z is here, and they have very specific expectations from the real estate they occupy.
1. Flexibility Is Non-Negotiable
Unlike past generations that were more inclined to sign long-term leases, Gen Z craves flexibility. They value the ability to pivot quickly and want their leases and space options to reflect that.
Flexible lease terms, short-term commitments, and the ability to scale up or down depending on business needs are all high on their list. Coworking spaces, shared retail environments, and hybrid models that combine showroom, studio, and storage functions are appealing because they lower overhead and risk.
Takeaway for landlords: Offer modular units, rolling lease options, or pre-designed expansion clauses. Properties that can be easily reconfigured are seen as more valuable.
2. Tech-Integrated Spaces Are Expected
Gen Z grew up with smartphones, social media, and everything smart. It’s no surprise that they expect their commercial spaces to be just as connected. High-speed internet is the baseline – not a bonus. But beyond connectivity, they expect technology to be woven into how buildings operate. Smart locks, energy management systems, real-time air quality monitoring, tenant portals, and even automated visitor check-in systems are becoming table stakes.
Landlord tip: Investing in PropTech isn’t just about efficiency – it’s about relevance. A lack of tech-forward infrastructure can immediately disqualify a property for a Gen Z tenant.
3. Sustainability Matters More Than Lip Service
Gen Z cares deeply about environmental and social impact. They actively seek out businesses and spaces that align with their values. LEED certification, solar panels, EV charging stations, recycling programs, and carbon-neutral operations aren’t just nice-to-have. They’re differentiators. Transparency is also key. If your building has green features, highlight them clearly and credibly.
What this means for owners: Green building upgrades may cost upfront, but they can help attract long-term, value-driven tenants who are willing to pay a premium for sustainability.
4. Wellness-Oriented Design Makes a Big Impact
Health and wellness are core priorities for Gen Z, and that doesn’t end at the gym. This generation wants to work and shop in environments that support mental clarity, physical comfort, and emotional well-being. That means buildings with good natural lighting, indoor plants, quiet zones, clean air systems, walkability, and even access to outdoor break areas are more attractive. Properties near bike paths, yoga studios, juice bars, or fitness centers also tend to catch their attention.
Design advice: Biophilic design, wellness certification standards like WELL or Fitwel, and amenities that support mental health will become increasingly important to this generation.
5. Authenticity and Community Beat Cookie-Cutter
Gen Z has a strong preference for uniqueness and local flavor. Standardized, mass-produced commercial environments tend to be a turn-off. Instead, they favor creative spaces with character like exposed brick, open ceilings, natural textures and a community-driven environment.
Many are solopreneurs or small business owners who prefer collaborative environments that allow for shared ideas, networking, and social engagement. Community-centric retail centers, local business hubs, and mixed-use developments with curated tenant mixes can thrive with this crowd.
Leasing strategy: Highlight the narrative of your property – its design story, neighborhood connection, or community activation in your marketing. It matters.
6. Experience Is Everything
For Gen Z, the space they lease isn’t just about utility, it’s part of their brand. Whether it’s an influencer launching a showroom for their brand or a micro-coffee roaster setting up a concept shop, the visual identity and vibe of a space are crucial. Aesthetics, ambiance, and “Instagrammability” play a key role in their leasing decision.
This generation understands the power of design in attracting customers and followers. If a space photographs well and provides a memorable experience, it’s far more valuable.
Owners should consider: Offering a blank canvas with strong bones (great lighting, high ceilings, and clean finishes) that allows tenants to personalize while still fitting into the overall character of the development.
7. Purpose-Driven Partnerships Win the Day
Gen Z values partnerships and wants to work with landlords and brokers who understand their goals, not just their rent budget. They’re more likely to lease in places where they feel seen and supported. That might mean receiving guidance on space design, understanding local zoning nuances, or having introductions to other tenants for potential collaboration.
Your competitive edge: Building trust and acting as a consultant instead of a gatekeeper will set you apart in the Gen Z leasing landscape.
Final Thoughts: Meeting Gen Z Where They Are
As Gen Z reshapes the commercial real estate landscape, the key for property owners and leasing teams is adaptability. This generation may still be young, but their influence is already driving market demand, redefining what “prime space” means, and pushing the industry toward a more flexible, value-driven future.
At the ICRE Investment Team, we understand these evolving expectations and we’re helping landlords, investors, and developers position their properties accordingly. Whether it’s designing a compelling marketing strategy, optimizing your tenant mix, or reimagining your space for a new generation of users, we’re here to help.
Visit www.investingincre.com or contact us directly – we’ll help you unlock the potential of your space with smart strategy and next-gen insights.
