- Emerging Trends In Real Estate
- FHFA Multifamily Volume Caps: 2022
- Apartment Rent Growth
- Consumer Price Index
- Office Demand
- CMBS Delinquencies
- NMHC Quarterly Survey
- Senior Loan Officer Opinion Survey
- Zoning Reform: A Case Study
- FOMC November Meeting
1. EMERGING TRENDS IN REAL ESTATE
- In PwC’s report on Emerging Trends in Real Estate for 2022, respondents highlighted a range of influential factors likely to impact real estate outcomes over the next year, including climate change, remote work, investor capital, prop-tech, and of course, COVID-19.
- The report notes the impact of extreme weather events in 2021 on the commercial real estate sector, including massive flooding that occurred in the New York metro recently and persistent wildfire risk
- in the West. 82% of respondents consider environmental, social, governance (ESG) elements in their operational investment decisions, with a slight majority indicating that these actions are for risk management, while a slight minority indicate it is for tenant and investor requirements.
- The future of remote work also took center stage. 20% of workdays are expected to be conducted outside of the workplace compared to just 5% pre-pandemic. While most CEOs have signaled their desire for employees to return to the office, an attitude shift has taken place, with more employers offering the perk in various forms and workers in better positions to accommodate remote-work setups.
- Investment capital has been flowing in droves so far throughout 2021, but the evolution of demand trends and interest rates over the next year may change that. So far, investors see the demand as remaining strong, but the ability for lenders and fund managers to remain disciplined in a tightening market will put things to the test.
- Property Technology (prop-tech) and digital advances also were noted as significant factors in the report, with virtual tours, automation, and friction-free leasing processes helping transform the sector during the pandemic.
- COVID-19 remained a concern on the minds of investors and the least predictable. The pandemic impacted the four main commercial real estate sectors in varying ways, but the path of case counts and vaccinations remains a catalyst to reducing investor uncertainty.
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