2023 commercial real estate outlook

Navigating uncertainty with strategic planning

The global real estate industry is operating in an uncertain and ever-shifting economic and political landscape. From emerging technologies to outsourcing opportunities, firms are attempting to navigate this uncertainty while still meeting the evolving needs of investors, tenants, and regulators.

Deloitte’s 2023 commercial real estate outlook explores the path forward and offers actionable insight that leaders should consider as they engage in strategic decision-making across office, industrial, retail, residential, and hotel sectors, as well as alternative segments of the market.

Key findings:

  • Global real estate CFOs appear much more reserved with their operating plans with only 40% of respondents expecting to finish 2022 with higher revenues than last year, and 33% expecting to cut expenses.
  • Owners and investors target office, digital economy, and logistics properties, with downtown and suburban locations as a top global risk-adjusted asset class opportunity.
  • ESG is still top of mind, but firms need guidance on how to implement changes and how to monitor progress. Only 12% are prepared to immediately respond to regulatory action.
  • The evolving regulatory environment brings changes to tax structure and modernization to the forefront with potential changes to transfer pricing and profit-sharing and increases in tax rates of greatest concern.
  • Regional approaches are emerging in attracting and retaining talent as firms focus on increased workplace automation, diversity, equity, and inclusion (DE&I) initiatives, and accelerated career growth opportunities and greater recognition and awards.
  • While technology budgets are more reserved, those who plan to increase spend have opportunities for greater efficiency and new revenue streams.
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