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Real Estate Outlook

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2015 Commercial Real Estate outlook

2015 Commercial Real Estate outlook
In many ways, the commercial real estate (CRE) industry is on more solid footing than it has been for quite some time. The US economy continues to progress and investors are generally seeing robust performance across most property types and markets. Could 2015 be the year for growth for the industry?
As we look forward to 2015, the macroeconomic environment is expected to continue to improve. The single-family housing sector—pricing and sales—continues to strengthen, albeit at a slow and inconsistent pace. These positive macroeconomic parameters could potentially provide a further boost to the strengthening CRE recovery.

In this Outlook, we highlight 10 areas that the …show more content…

For the full view into the expected CRE trends, download the report.

This Outlook is part of Deloitte’s Financial Services Industry Outlooks series, which provides insights and trends for banking, insurance, investment management, and commercial real estate.

10 trends for commercial real estate

10 trends for commercial real estate
Interview with Bob O’Brien

What are opportunities and challenges for the real estate industry in 2015? Read this interview with Bob O’Brien, Deloitte’s Global and US Real Estate Industry Leader for insights on industry growth, potential challenges and pitfalls, and the next big thing.

Macroeconomic fundamentals

Positive economic growth supporting the CRE industry
Fundamentals, transactions, and lending continue to strengthen, although risks related to interest rate hikes and regulatory uncertainty will potentially impact growth
Globalization

US gaining traction as the preferred investment destination
The rising foreign investor interest can provide an additional funding source, especially for development
Companies looking to access foreign capital should understand the investment pattern and objectives to build long-term and mutually beneficial …show more content…

Transaction activity

A sweet spot driven by a broad-based recovery in deals and pricing
Companies can take advantage of the robust transaction and pricing environment
Companies can begin with a thorough due diligence of their existing portfolio, identify the non-accretive properties for disposal, and eventually plan new developments, redevelopments, and/or acquisitions
Property-specific fundamentals

Tenants’ sustainability focus and technology use redefines space demand and supply
CRE players should change their demand-supply assessment and factor in the influence of technology and competition
Increasingly collaborate with potential and existing tenants at the design stage to understand their technology needs and incorporate them as an integral part of the design and/or redesign
Sustainability

Adoption, measurement, and reporting is a business imperative
Three critical factors to improve measurement and reporting of sustainability practices are awareness, analysis, and action
CRE players should put processes in place that drive environmental performance
Technology & automation

Adoption integral to enhancing tenant engagement
To maintain a competitive edge, companies need to be progressively aware of new

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