In its annual report, The Counselors of Real Estate, a global consortium of commercial property professionals and experts, detailed the top ten issues affecting real estate in years 2021-22.
Top Ten in Ascending order –
10. Bifurcation of Capital Markets
9. Adaptive Reuse 2.0
8. Economic Structural Change
7. Political Polarization
6. Housing Supply and Affordability
5. Infrastructure: New Imperatives Emerge
3. ESG at a Tipping Point
2. Technology Acceleration and Innovation
1. Remote Work & Mobility
Number one was Remote Work & Mobility
Further, after years of apparent but variant trends towards urbanization, the pandemic universally caused a movement away from urban cores, particularly for those with higher incomes who could afford to move and for lower-income individuals seeking lower costs of living. Most of these relocations remained within their original region—84%—and, while some are returning, it is unknown as to the permanence of these movements or whether they represent a true urban exodus
Time will tell as to which population migration and space use behaviors will endure, as all real estate sectors will be watching closely and poised to react. Property owners and managers should be flexible in order to accommodate these demand-driven changes in the desired use and location of space. It is for these reasons, The Counselors of Real Estate believes Remote Work and Mobility merits the number one spot on the 2021-22 Top Ten Issues Affecting Real Estate.
Technology once again makes our Top Ten list but under different conditions and with more short-term implications. Constant themes like artificial intelligence, machine learning, the Internet of Things, and cybersecurity remain part of the landscape. They have moved from “new” to “how we do things now.” This year the news is not about new tech, but about our acceptance of it. Lockdown-driven changes in our work, in the economy, in social structures, and in our personal behavior have pushed our reluctance aside. The acceleration and adoption of technology during the pandemic has impacted everything, and real estate is no exception.
For a one hour video of the presentation – https://www.youtube.com/watch?v=TEMxtT5PSoQ