|What’s in this issue?|
| > Emerging Trends Provides Outlook for 2021
> How is Working from Home Affecting the Office Sector?
> NAIOP Coronavirus Impact Survey
Emerging Trends Provides Outlook for 2021
Last month, the Urban Land Institute and PwC released Emerging Trends in Real Estate 2021, which highlights the trends shaping the real estate industry and forecasts how commercial real estate will perform next year.
The trends in this year’s report include:
- The Economy (and Real Estate) Hang On. Industrial properties, data centers and single-family homes are expected to rise in value, while retail and hospitality will see the largest declines.
- Exodus to the ‘Burbs. COVID-19 is accelerating suburban growth, especially in the Sunbelt. Austin in particular is seeing a surge in suburban office development.
- Work from Home Changes the Office Outlook. The shift to remote work is not going away; 94% of real estate professionals say companies will allow employees to work remotely at least part of the time in the future. As a result, some businesses are shrinking their footprints as a cost savings measure.
- Safety and Wellness. Health and wellbeing will become more important across all sectors of real estate – particularly hotels, office buildings, retail and restaurants.
- Stores Still Matter. More than 80% of those surveyed agree that COVID has accelerated a shift in retail that was already taking place. Expect to see a much smaller physical retail presence and vast amounts of vacant space with lower rents.
Emerging Trends also lists the top markets for investors to watch. This year, Raleigh/Durham topped the list, followed by Austin and Nashville.
Now in its 42nd year, Emerging Trends is based on interviews and survey responses from 1,687 real estate experts, including investors, fund managers, developers, lenders, brokers, advisors and consultants.
To review the complete report, click here or use the contact information below. How is Working from Home Affecting the Office Sector?
The office sector is experiencing unprecedented challenges due to COVID-19. As shelter-in-place orders rolled out earlier this year and companies allowed their employees to work from home, the need for physical office space declined. So, what will happen to the office sector?
CoreNet Global, a nonprofit that represents over 11,000 corporate real estate executives, recently released a survey on the effects of the pandemic. Here are some key findings about the future of the office.
- One-half of the survey respondents said it will be at least June 2021 before 50% of their workers return to work onsite.
- Once workers do return, the office will be a place for collaboration and teamwork, rather than individual work, according to 86% of respondents.
- 64% said that the typical 9-5 workday is a thing of the past.
- Survey respondents expect their company’s employees to spend about half their time in a traditional office, 42% in a home-based office and 7% in a co-working space.
- 70% of survey respondents say their corporate real estate footprint will shrink over the next two years.
- 71% report that their company will not shy away from densely packed urban areas, but 66% say that pandemic readiness on the part of cities will be a factor in their company’s site-selection plans going forward.
For more information, use the contact information below. NAIOP Coronavirus Impact Survey
According to a NAIOP survey conducted in September, CRE deals increased in September, compared to August, with industrial properties attracting more deals than any other property types. Despite the deal activity, however, more tenants sought rent relief, particularly in the office sector.