2019 Commercial Real Estate Outlook

Article

2019 Commercial Real Estate Outlook

New rules of the road

Investors tend to prefer agile, technologically driven companies

Technology innovation and evolving preferences of investors, tenants, and end-users seem to be redefining traditional commercial real estate (CRE) business models and the use of built space. Take the example of WeWork, the cosharing space owner that is positioning itself as a “services” company rather than a property owner-operator.

Executive Summary

Our 2019 Commercial Real Estate Outlook dives deeper into the preferences of CRE investors to help CRE companies understand the new rules of the road. Our Outlook survey of 500 global investors, which provides insights on factors that are influencing their CRE investment decisions, revealed the following key themes:

  1. Respondents plan to increase their capital commitment to CRE, with the United States, Germany, and Canada leading the way.
  2. Nontraditional assets such as mixeduse properties and new business models such as properties with flexible leases and spaces are expected to attract more investment dollars.
  3. The surveyed investors expect to prioritize their investments in existing and potential investee companies that
    they believe are responding to business model changes and adopting a variety of technologies to make buildings futureready.
  4. Survey respondents see a significant impact from technology advancements on legacy properties in less than three
    years.
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REflexions issue 8 - October 2018

REflexions is a bi-annual digest, dedicated to the real estate investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.

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