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Analysis

2019 Commercial Real Estate Industry Outlook

Agility is key to winning in the digital era

New business models and competition, extensive use of technology, and changing tenant and investor expectations are redefining the commercial real estate (CRE) industry. As investors increasingly favor newer business models and the tech-enabled ecosystem, companies in the commercial real estate industry will have to realign business priorities and adapt to new demands. The most agile will win away customers and top talent—along with investment dollars.

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Endnotes

1 Surabhi Kejriwal, Saurabh Mahajan, and Neeraj Sahjwani, 2018 Real Estate Outlook: Optimize opportunities in an ever-changing environment, Deloitte Center for Financial Services, October 2017
2 WeWork website, accessed on August 20, 2018
3 Steven Bertoni, “WeWork’s $20 billion office party: The crazy bet that could change how the world does business,” Forbes, October 2, 2017
4 Deloitte US Economic Forecast 2nd Quarter 2018
5 Global Market Perspective, JLL, August 2018, http://www.jll.com/gmp
6 Ibid
7 Ibid
8 S&P Global Market Intelligence, May 31, 2018
9 Rob Smith, “Mall operators turning to retail incubators to fill empty space,” CoStar, August 8, 2018
10 Daphne Howland, “Coworking spaces may be the answer to retailers’ foot traffic problem,” Retail Dive, August 13, 2018
11 “Leases are ending sooner as landlords innovate,” ICSC
12 Allen Kenny, “Maximizing REIT returns,” Nareit, March 14, 2018
13 Sarah Borchersen-Keto, “Green Street says smaller REITs can take steps to attract institutional investors,” Nareit, January 12, 2018
14 Joseph Stecher, “Why commercial real estate still lags in adopting new technology,” Urban Land Institute, June 24, 2016
15 Bill Briggs, Khalid Kark, Anjali Shaikh, and Kristi Lamar, 2018 Global CIO Survey – Manifesting legacy: Looking beyond the digital era, Deloitte Insights, August 8, 2018
16 Bill Briggs et al., Tech Trends 2018, Deloitte Insights, December 5, 2017
17 David Schatsky, Navya Kumar, and Sourabh Bumb, “Intelligent IoT: Bringing the power of AI to the Internet of Things,” Deloitte Insights, December 12, 2017
18 Richard Evans and Jim Gao, “DeepMind AI reduces Google data centre cooling bill by 40%,” DeepMind, July 20, 2016
19 Cybersecurity for critical infrastructure: Growing, high-visibility risks call for strong state leadership, Deloitte, 2017
20 “3 types of cybersecurity assessments,” threatsketch.com, May 16, 2016
21 Carlos Molina, “Next-generation cyber attacks call for next-generation solutions,” CUNA Mutual Group, accessed on September 28, 2017
22 Nitiya, “Why most millennials prefer startup culture jobs,” Daily WOBB, June 16, 2017
23 Peter Evans-Greenwood, Alan Marshall, and Matthew Ambrose, “Reconstructing jobs: Creating good jobs in the age of artificial intelligence,” Deloitte Insights, July 18, 2018
24 Ibid
25 Kumba Sennaar, “Machine learning for recruiting and hiring – 6 Current applications,” TechEmergence, December 15, 2017
26 “Reducing voluntary turnover through predictive analytics” [case study], Deloitte, 2014, https://www2.deloitte.com/us/en/pages/deloitte-analytics/articles/finding-the-balance.html
27 Surabhi Kejriwal, Saurabh Mahajan, and Neeraj Sahjwani, 2018 Real Estate Outlook, October 2017
28 Michele Parmelee, “Insights from the 2018 Deloitte Millennial Survey: Uneasy, pessimistic, and concerned,” Deloitte Insights, May 15, 2018
29 2018 Deloitte Millennial Survey: Millennials disappointed in business, unprepared for Industry 4.0, Deloitte, May 15, 2018
30 “Baby boomers providing a backbone to business, Korn Ferry, September 6, 2016
31 Ian Johnston, “Lack of gender diversity still a problem for the real estate industry,” Bisnow Toronto, March 25, 2018
32 Venture Scanner database, July 1, 2018
33 Ibid
34 Open Box website, accessed on August 15, 2018
35 Ibid
36 Leverton website, accessed on August 15, 2018
37 Ibid
38 Rey Mashayekhi, “Investor confidence in proptech sector hits all-time high: MetaProp,” Commercial Observer, August 9, 2018
39 Audrey Baverel, “Proptech & the disruption of real estate,” Silicon Luxembourg, May 17, 2018
40 Jim Eckenrode and Sam Friedman, Closing the gap in fintech collaboration: Overcoming obstacles to a symbiotic ecosystem with incumbents, Deloitte Center for Financial Services, September 2018
41 “JLL signs global agreement with Leverton to automate lease management,” MarketWired, November 30, 2016
42 Jim Eckenrode and Sam Friedman, Closing the gap in fintech collaboration: Overcoming obstacles to a symbiotic ecosystem with incumbents, Deloitte Center for Financial Services, September 2018
43 Ibid
44 Jim Eckenrode and Sam Friedman, Fintech by the numbers: Incumbents, startups, investors adapt to maturing ecosystem, Deloitte Center for Financial Services, November 16, 2017

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