2024 Commercial Real-Estate Outlook: Finding Terra Firma

Continuing to confront multiple challenges and shifting expectations, in 2024, the global real estate industry has an opportunity to start rebuilding on more solid ground. Multiple factors, from a pandemic-era recovery that shifted how and where people work to more recent geopolitical uncertainties and financial market instability, the coming year is expected to be pivotal in real estate firms’ ability to recover and build up. Marked by a myriad of mixed signals about the health and trajectory of our industry, real estate leaders may need to find their footing as they shape the next phase of real estate ownership and investment.

In this year’s report, we advise leaders on how they may be able to establish more efficient, sustainable business through proactive property portfolio structuring and risk mitigation, value creation through green and decarbonization initiatives and tax incentives, and by transforming operations and technology.

Report Key Takeaways:

1. Expense mitigation is a top priority for most respondents.
2. Respondents point to cost of capital and capital availability as the weakest among real estate fundamentals.
3. Many real estate firms aren’t ready to meet environmental, social, and governance (ESG) regulations. Nearly 60% surveyed say their firms lack the data, processes, and internal controls necessary to meet compliance standards.
4. Most respondents say they plan to use outsourcing to drive efficiency. Their primary goals are gaining technological capabilities to streamline processes and adding agility and resilience to their operations.
5. Real estate firms should address years of amassed technical debt by ramping up technology capabilities. Most respondents (61%) admit their firms’ core technology infrastructures still rely on legacy systems, but nearly half are making efforts to modernize.

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