CRE Daily’s Post

Real Estate Reckoning 🌍 How can the commercial real estate industry find solid footing in 2024 amidst declining demand?    1️⃣ Expense Management: Real estate firms are prioritising expense cuts, particularly in talent and office space, as revenue expectations hit a record low. Bye-bye brokers, lease you later.    2️⃣ Capital Concerns: The cost and availability of capital are highlighted as problematic, with many expecting conditions to worsen throughout 2024 and beyond. The U.S. Federal Reserve’s annual health test revealed that big banks could survive a hypothetical 40% drop in commercial real estate values.    3️⃣ ESG Readiness: Nearly 60% of firms are not prepared to meet ESG regulations, lacking the necessary data, processes, and internal controls. Many firms are likely looking to a potential future US Republican presidency to alleviate some of these concerns.     🔍 The full Deloitte 2024 Commercial Real Estate Outlook dives deeper into these insights and more, offering strategic guidance to navigate the shifting landscape.    #CommercialRealEstate #RealEstateTrends #ESG #CapitalMarkets #ExpenseManagement #2024Outlook #DeloitteInsights 

Explore the future of commercial real estate with Deloitte commercial real estate outlook. Adaptation and evolution are key in meeting new client expectations and market changes. Dive into our in-depth analysis and learn more about our wide range of services. Let's shape the future of real estate together.

🗓 🏢 Key Takeaways of 2024's Commercial Real Estate Outlook: 1. Respondents point to cost of capital and capital availability as the weakest among real estate fundamentals. About half of respondents expect cost of capital (50%) and capital availability (49%) to worsen through 2024, up from 38% and 40%, respectively, last year. 2. Investors are becoming increasingly cognizant of property sustainability, and how comprehensive and verifiable reported metrics for these assets can be the reason why many choose to invest or not. Credit: Deloitte Center for Financial Services

The stats are out... 👯♀️ Discover what the people want in Kitt's latest industry report 𝘛𝘩𝘳𝘪𝘷𝘦 𝘕𝘰𝘵 𝘚𝘶𝘳𝘷𝘪𝘷𝘦: 𝘏𝘰𝘸 𝘵𝘰 𝘤𝘢𝘱𝘵𝘶𝘳𝘦 𝘷𝘢𝘭𝘶𝘦 𝘪𝘯 𝘓𝘰𝘯𝘥𝘰𝘯'𝘴 𝘴𝘶𝘣-10𝘬 𝘰𝘧𝘧𝘪𝘤𝘦 𝘮𝘢𝘳𝘬𝘦𝘵 🔍 Key takeaways: → Office leases decreased from an average of 8 years in 2019 to 5 years in 2023. → Asset owners adapting fill buildings quicker with rents up to 40% higher than traditional leases. Great to contribute our insights alongside JLL, CBRE, Cushman & Wakefield, Berkeley Estate Asset Management, Colliers. Download the full report 👉 https://hubs.la/Q02FqyTY0 #officemarket #report #landlords

Your Weekly Flex tip # 10 - Flex Management agreements and Asset Valuations explained with a LIVE example. This has been an elephant in the room for many investors over the years. Yes we understand that flex and coworking is important for asset strategies, but balancing that with the asset's valuation integrity can be a head scratcher. Whilst Valuers need more time and data to set any guidelines into stone... we are seeing more and more case studies of flex contributing to an asset's stickiness and the speed it fills. In this video I also share the way a Valuer has looked at a 3500sqm space (circa 12% of the total asset NLA) at one of our flex partnership sites. Hope this helps. Best Tashi P.S. if you would like to share any examples of how flex in your building has helped your overall asset strategy please reach out. My intention is to try work with the JLL Valuations and Research team to pull together some data and commentary around this dynamic to support future market decisions. #coworking #flexspace #assetvaluation #office

The article by Deloitte outlines challenges and opportunities in the global real estate industry for 2024. It highlights the need for strategic realignments amidst pandemic recovery, geopolitical uncertainties, and financial instability, offering insights to navigate these complexities. Click the link below to read. #ThisWeekInConsulting #TWIC #RealEstate #Deloitte

The article by Deloitte outlines challenges and opportunities in the global real estate industry for 2024. It highlights the need for strategic realignments amidst pandemic recovery, geopolitical uncertainties, and financial instability, offering insights to navigate these complexities. Click the link below to read. Jeffrey J. Smith, Katherine Feucht, Renea Burns and Timothy Coy #ThisWeekInConsulting #TWIC #RealEstate #Deloitte

Demand in the lagging #office investment sales market is becoming noticeably focused on well-located Class A buildings as transactions keep increasing this year, according to Will Yowell, vice chair of capital markets at CBRE.

According to JLL's latest national research, economic defensiveness, dwindling relocation options, and capital constraints for buildouts are driving more tenants to renew expiring leases in the past year—though renewal rates had fallen to near 20-year lows in 2022, sharp increases in the past year now reflect two-thirds of large tenants opting to renew rather than relocate. Renewal probability is expected to continue #trendingupwards over the medium term: transaction activity for larger tenants is increasing, high-quality availability is starting to decline across many markets, and a rapidly-declining pipeline will offer few new options to be delivered for the next several years.

OUT NOW | Colliers Office Middle Markets | Australian Investment Review | H1 2024 The first half of 2024 has been marked by relative stability in the office market, reflecting the stabilisation of borrowing costs. Despite modest growth in transaction volumes for office sales in the $10-$50 million range, significant increases were observed in the $50-$150 million bracket, driving total sales volume to $2 billion. The investment landscape has been influenced by varying investor and geographic profiles, with notable shifts in market activity and capitalisation rates. This period also saw a slowdown in offshore capital deployment and a reshuffling of active markets, with Queensland surpassing Victoria in transaction activity. As global monetary policies begin to ease, the outlook for the remainder of 2024 is bright, with expectations of increased deal volumes and a robust conclusion to the year for the Australian Office Middle Markets sector. Our team are proud to be the only agency dedicated to pioneering and publishing insightful research exclusively tailored to the Office Middle Markets sector. Our research delves into the intricacies that define this dynamic sector, tapping into key trends and tracking transactions between $10m to $150m. Download a copy of the report here: https://lnkd.in/ghqbT2sp For further insights or to find out how we can accelerate your property requirements, contact the Colliers Office Middle Markets experts today. Chen L., Connor Oghlanian, Catherine Scott, John McCann, Matthew Meynell, James Girvan, Tom Appleby, Peter Macadam, Matthew Winter, Nick Garoni, Ben Baines, Ted Dwyer, Alex Browne, Eddie Foulkes, Hunter Higgins, Nick Wedge, Steven King, Bede Blatchford, Jordan Schmidt, Alistair Mackie, James Baker, Charlie Gilmour, Doreen Castaneda, Leanne Simonds, Joanne Henderson, Cecilia Wang