They should strive to be digital—optimizing business, operating, and customer models for a digital environment. More than three-fifths of companies acknowledge that they are capturing Internet of Things (IoT) sensor data. In contrast, North American respondents’ expectations are balanced: Forty-seven percent expect a rental decline and 49% anticipate an increase in vacancy levels (figure 6). A podcast by our professionals who share a sneak peek at life inside Deloitte. National Director of Research. Monitor the impact on your business. Ottawa, ON, November 16, 2020 – Statistics released today by the Canadian Real Estate Association (CREA) show national home sales continued running at historically strong levels in October 2020. CoStar Commercial Real Estate Market Analytics provide you access to property level data including vacancy, rents, sale comps and tenants for any multifamily, office, industrial or retail property. Discover Deloitte and learn more about our people and culture. In our 2021 CRE Outlook, 200 industry leaders weighed in on how their companies are recovering from the COVID-19 pandemic. Visionaries may have to repurpose a lot of their spaces for multiple uses, while traditionalists could maintain existing spaces with guidelines around seat usage and sharing. View in article . Below you'll find statistics on homes for sale in Austin, TX, and the surrounding communities, updated every 15 minutes from the ACTRIS MLS. November 9, 2020. For example, a larger proportion of respondents from North America, compared to respondents from Europe and APAC, expect rental collection declines of more than 20% in the next one year (figure 10). Overall, the pandemic appears to have accelerated many organizations’ need to revamp job roles, recruiting strategy, talent systems and processes, and culture to attract and retain a multigenerational workforce. Jim Chaconas has an enormous footprint in Washtenaw County commercial real estate. View in article, CBRE, “U.S. View in article, Hannah Levine, “COVID-19 accelerates technology adoption in seniors housing,” JLL, July 28, 2020; Brian Lee, “How to leverage technology to adapt to COVID-19,” GlobeSt, May 28, 2020. Make smart decisions when investing or finding a location with commercial real estate market research featuring global, national and local trends. More and more companies are rethinking how and when they use office spaces: Increasingly, offices will be reserved for face-to-face interactions and team-based activities, and enhancing collaboration and innovation, while employees would continue to work remotely for more individualized tasks and assignments. Our recent article offers in-depth insights related to talent transformation, which will likely be a multiyear effort for many organizations. Market Extra Distress looms over U.S. commercial real estate in 2021 Last Updated: Dec. 13, 2020 at 11:23 a.m. From its building located steps away from the U.S. Capitol, NAR advocates for you. Code of Ethics, NAR's Constitution & Bylaws, and model bylaws for state & local associations. Empowers REALTORS® to evaluate, enhance and showcase their highest levels of professionalism. REIT respondents seem to acknowledge this and are being more open to collaborating with proptechs. E-commerce sales expected to drive warehouse demand. Less than 50% of respondents consider digital tenant experience a core competency of their organization. Get up to … While portfolio restructuring is commonplace, it’s taken on a new meaning due to the pandemic’s effect on space usage. In contrast, industrial property index rose 7.4% YoY.7 Unlike the Global Financial Crisis (GFC), CRE companies had generally strong financials at the start of the pandemic and debt markets remain sufficiently liquid. Some key challenges: CRE company leaders have their work cut out. People are increasingly missing human interaction, which was vastly reduced or eliminated due to shelter-in-place orders for a long period of time, and in some regions continues. Find industry analysis, statistics, trends, data and forecasts on Commercial Real Estate in the US from IBISWorld. Data by Redfin.com shows that the average sale price of a home was $630K last month, up 2.4% since last year. Explore the 2021 U.S. Real Estate Market Outlook for insights on accelerating trends and recovery forecasts for the economy and various real estate sectors. Stay informed on the most important real estate business news and business specialty updates. According to our survey, property operations and management and finance ranked first and second among anticipated investment in CRE functions. Forty-six percent of North American respondents and 45% of European respondents versus only 26% of APAC respondents expect capital availability to decline in the next 12 months. Companies can use automation or outsourcing of noncore operations, or a combination of both, to gain operational efficiency. Regionally, 38% of North American respondents reported their companies had such plans versus 53% of their European and APAC counterparts. Globally, 40% of respondents expect a decline in rental growth and 59% anticipate an increase in vacancy rates over the next 12 months. Atlanta … Explore the Moody's Analytics CRE Solutions and our impact on commercial real estate professionals in insurance, lending, banking, and more. For instance, companies can leverage cloud-based tools for digital marketing and to connect virtually with tenants to build a digital tenant experience. With a metro … Forty percent had more than US$100 million but less than US$5 billion in AUM, 29% had between US$5 billion and US$10 billion, 31% had more than US$10 billion. Market Statistics. To expedite implementation of a digital transformation road map, CRE companies should look for strategic partnerships with technology providers or proptechs. Columbus Real Estate Market Trends & Statistics 2020 In this section, you’ll learn about the top factors that make Columbus one of the strongest real estate markets of 2020, including: affordability, rental income, cash flow, and equity growth potential. However, when asked how frequently they exhibit certain behaviors linked to virtual productivity, they did so less than 50% of the time.35. GTA investment transaction statistics Q2 2020: commercial real estate market sees pause in second quarter. Yet, the importance of empathy and human connection is also coming to the fore. Companies can significantly increase tenant engagement by optimizing real-time updates about facilities and developing a sense of community using mobile apps. After the pandemic subsides, we expect some organizations may continue to function as traditionalists. The Deloitte Center for Financial Services, which supports the organization’s US Financial Services practice, provides insights and research to assist senior-level decision-makers within banks, capital markets firms, investment managers, insurance carriers, and real estate organizations. Sample Commercial Real Estate Market Statistics The global commercial real estate market report/study will contain data, analysis, commentary and infographics for the list of regions covered in … But they will likely leverage learnings gleaned from remote working to incorporate more progressive and visionary approaches. Companies should strengthen their asset portfolios, especially as the financing environment may tighten, if the current economic environment continues for a long time. NAR produces research reports, housing statistics, and commercial … Digital transformation of the business and tenant experience could become a business imperative. As we write this outlook, economic activity is contracting due to a fresh resurgence of the virus in Europe.1 Large Asia-Pacific (APAC) economies such as Japan and Australia haven’t yet turned the corner to growth, India is facing a severe downturn, and strained relationships between the United States and China are creating significant geopolitical tensions.2 According to Deloitte’s economic forecast, in the United States, it is expected that “a vaccine and/or treatment will allow normal economic activity to begin to resume in mid-2021.”3 As it will take time to deploy the vaccine, our economists expect growth to remain somewhat constrained for a period of time.4 (Click here to read Deloitte’s latest US Economic Forecast.). Industry market research reports, statistics, analysis, data, trends and forecasts. Preparing for the future of commercial real estate: Redefining the talent experience, Deloitte Insights, September 15, 2020. View in article, NAREIT, “Quarterly REIT performance data,” accessed September 20, 2020. In a Deloitte study of 11,000 workers, 80% of employees said they were able to meet the expectations of their role in a virtual setting. Further, the factors cited above could put pressure on liquidity and lead to more distressed asset sales and price declines. Companies can use a decision matrix (figure 12) to design or redesign office space based on employees’ preferred work location and their ability to choose where they work. Fifty-seven percent of private equity/hedge fund/mutual fund respondents said they are likely or very likely to identify new alternative data sets for insight generation and facilitating investment decisions. Further, 47% of European respondents and 44% of APAC respondents, compared to 32% of North American respondents, have started redefining business processes, job roles, and skill requirements to embed the use of technology and tools. Real estate information on statistics by estimated market values, bedrooms, bathrooms and year built. Optimizing operational costs and using technology to reposition space and for facilities management can improve operational resilience. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the "Deloitte" name in the United States and their respective affiliates. They can also use tenant data to predict lease renewals and devise appropriate strategies for tenant retention.12 APAC companies seem to have a higher focus on data analytics: Fifty-eight percent of APAC respondents expect their companies to increase investment on data analytics in the next year, compared to only 32% of European respondents and 34% of North American respondents. Whether you’re a new agent or an experienced broker you have access to a wide array of resources designed to help you succeed in today's market. Sales during the first four months of the year were consistent with volumes in recent years, mainly due to strong results in the first quarter. With this as the backdrop, we wanted to understand how well-equipped CRE leaders were to weather the current economic situation, how they are planning to recover over the next 12 months, and how they are preparing to remain competitive and thrive in the long term. Ransomware attacks continue to increase and are rated as a key cyberthreat for REITs.13 Companies should first assess whether current efforts are sufficient; if they aren’t, they should upgrade their cybersecurity programs to have greater control over both internal and external information flows.14 In particular, they should assess potential cyberthreats from using new cloud-based communication and collaboration tools. Real Estate Market Analysis. Next, companies could use different analytical tools to generate insights and facilitate decision-making. Average rent collections have been above 90% for industrial, office, apartments, and health care REITs during the April–July 2020 period.25 Rent collections for US shopping center REITs dropped to 50% in April, but continue to recover, rising to 80% in August.26 The healthy rent collection is being offset by higher tenant improvement and leasing commission costs (TI & LC), which are impacting operating margins in some sectors. Overall, respondents seem committed to digitizing operations: Most plan to make the highest technology investment in property operations and management among different CRE functions. With a focus on identifying and executing the best options and solutions for his clients, Jim has built Colliers Ann Arbor into a leading expert in the areas commercial … From forward-looking thought leadership, to reports on emerging commercial real estate trends, to analysis of statistics … Now more than ever, CRE companies need to capture and analyze high-frequency data to create a meaningful tenant experience. The future looks most uncertain in the commercial real estate market, which has experienced a significant decline in economic activity. The Colorado Association of REALTORS® (CAR) Monthly Market Statistical Reports are based on data provided by Multiple Listing Services (MLS) in Colorado. More than 50% of respondents acknowledged that their ability to succeed in the postpandemic world would be hampered by employee concerns about returning to work. The survey included CRE companies with assets under management (AUM) of at least US$100 million in 2019. She serves as lead client service partner for both public and private clients in the Chicago and Milwaukee marketplaces, with a focus in the real estate and hospitality sectors. The Ann Arbor office market contains an inventory of 9,279,670 square feet of office space, in 162 buildings that are equal to or larger than 25,000 square feet. Market Statistics; Community. Interestingly, only 37% of the APAC respondents expect a decline in rents, but 74% anticipate a significant increase in vacancy levels. Only members of NAR can call themselves a REALTOR®. All Rights Reserved. Yet, troubled loans are rising; banks, fearing higher delinquencies, are tightening lending standards.8 In several sectors, rent collections have remained healthy, but largely because of higher tenant incentives and leasing concessions. European leader in the commercial real estate market. Thereafter, companies should frame the execution plan to work on key initiatives for digital transformation and ensure the transformation team has the right talent and governance structure to implement the digital solutions. View in article. View in article, Deloitte, The Deloitte Global Millennial Survey 2020, 2020. COVID-19 accelerated the use of technology in the CRE industry. 2. With more organizations and end users making data-backed decisions, sharing relevant property-related data could help companies build trust and increase tenant/end-user engagement. There is also a shift in market dynamics; people are starting to avoid overcrowded cities such as San Francisco, New York, Toronto, Tokyo, and Paris.20 This shift has led to tremendous short-term uncertainty surrounding property valuations and the premium associated with Class A properties globally. Insights. Despite transformational changes to our business, CBRE’s 2020 U.S. Outlook predicts a very good year for commercial real estate… View in article, The Real Deal, “Vornado will install facial recognition tech in all its buildings,” August 11, 2020. For instance, owners/operators can combine and analyze the occupancy, movement, and temperature sensor data and assist tenants in creating COVID-19–safe seating and space utilization decisions. These investments may include productivity and performance measurement tools, training leaders to manage virtual teams, and redesigning spaces to facilitate collaboration and make employees feel safe. For instance, while implementing facial recognition technology at its properties, Vornado provided an opt-out option and invested in secured data storage.16. ET First Published: Dec. 12, 2020 at 2:31 p.m. The center is staffed by a group of professionals with a wide array of in-depth industry experiences, as well as cutting-edge research and analytical skills. While 46% of North American and 53% of European respondents anticipate lowering costs by 11–20%, 41% of APAC respondents expect a steeper rationalization of 21–30% (figure 8). 6 For instance, US retail and office price indices declined 4.1% and 0.5% YoY in August. TREBHome - Market Statistics About TRREB The pandemic is also creating longer-term, evolving shifts in tenant and end-user preferences, which will likely influence leasing demand. International Homebuyers Report. In a matter of weeks, most of the CRE workforce moved to remote work, property tours turned virtual, most tenant communication converted to online channels, and more technology was required to manage day-to-day operations.9 Some CRE companies also increased their use of cloud-based collaboration and productivity tools to lower in-house technology costs and increase flexibility.10. View in article, Hannah Steinkopf-Frank, “Urban exodus? And people remain anxious about their health and well-being and the health and well-being of their families and friends, which is compounded by growing concerns about climate change and political unrest in many parts of the world.37. Research suggests that a diverse and inclusive workforce leads to higher productivity, creativity, profitability, employee morale, and a stronger brand.36 However, only 46% of respondents report being focused on increasing the level of diversity in hiring, development, and leadership. Right now, companies need to make holistic choices about in-office and virtual work to ensure employees feel safe and remain productive. April 30, 2020. As a member, you are the voice for NAR – it is your association and it exists to help you succeed. To recover and prepare to thrive over the next 12 months, the CRE industry should focus on managing costs to improve operational efficiency and repositioning the value of existing CRE spaces. Leaders should therefore master the art of walking on a tightrope—balancing business recovery, seizing new opportunities, and tenant and employee engagement. Research shows that distractions, isolation, blurred work/life balance, and adjusting to new ways of working are negatively impacting productivity in virtual work environments. Network with other professionals, attend a seminar, and keep up with industry trends through events hosted by NAR. Get the latest top line research, news, and popular reports. Only 38% of respondents say their organization has increased collaboration with tenants to understand end-user preferences. Companies can strengthen operations and build trust with tenants by adopting a structured approach to digital transformation, bolstering cybersecurity and data privacy efforts, and leveraging and using analytics to make data-backed decisions. For many CRE industry leaders, the pandemic has been an eye-opener. First signs of a move out of the world’s cities,” WorldCrunch, June 8, 2020. Prices on U.S. commercial real estate deals showed signs of improvement in the third quarter, though the number of transactions tumbled as Covid-19 continued to … We're trusted by over 70 REALTOR associations, hundreds of economic development communities, thousands of CRE brokerages, and tens of thousands of commercial … But now, some landlords are converting empty retail spaces into mixed-use developments, apartments, or warehouses. Copy a customized link that shows your highlighted text. The number of homes sold through the MLS® System of the Kamloops and District Real Estate Association totaled 120 units in April 2020. DTTL (also referred to as "Deloitte Global") does not provide services to clients. The commercial mortgage-backed securities delinquency rate remained above 9% in August, after reaching an all-time high of 10.3% in June, largely driven by hotels at 23% and retail at 15%.31 In July, 78% of US domestic banks tightened lending standards for CRE loans.32. Toronto Real Estate Board com is the online information source for comprehensive coverage of real estate listings and services in the Greater Toronto area. Simply select text and choose how to share it: 2021 commercial real estate outlook
To position their companies to thrive long term, they need to break inertia to move into rapid recovery. As a starting point, companies should evaluate not only employee preferences, but also the job role and the degree to which it can be done remotely and autonomously. Commercial Real Estate Statistics Compared to other major metropolitan areas and against national averages, businesses benefit from the highly competitive Rochester commercial real estate market. Planning and implementing a talent transformation to adapt to the future of work, and prioritizing diversity and inclusion will provide a competitive edge. Explore Dallas’ housing market… The region's outstanding infrastructure supports the diverse real estate … Meanwhile, CRE companies face cost pressures due to softening operating fundamentals: Respondents plan to reduce costs by 20% on average. Commercial Real Estate Investments – As defined for the purposes of this report, the U.S. insurance industry’s CRE exposure consisted of $41.5 billion in directly owned properties and $396 billion in … 45% of brokers report that “keeping up with technology” is the biggest challenge their agents face. Nareit estimates that the 2018 total dollar value of commercial real estate was between $14 and $17 trillion, with a mid-point of $16 trillion. Commercial Real Estate Market Trends and Outlook, Search Commercial Real Estate Market Trends and Outlook, Starting Your Career in Commercial Real Estate, REALTORS® Political Action Committee (RPAC), Our Mission, Vision, and Diversity & Inclusion, Additional Resources for Members & the Public. This could involve an in-depth analysis of business processes, identifying opportunities to restructure and reduce redundancies. Property technology continues to revolutionize the commercial real estate (CRE) industry, and online CRE data tool sets have become crucial for CRE professionals to research, buy, … Respondents were equally distributed among three regions: North America (the United States and Canada), Europe (the United Kingdom, France, Germany, and Switzerland), and Asia-Pacific (Australia, China, Hong Kong SAR, and Japan). And while many CRE companies have taken a reactive approach to digital transformation, developing a more structured plan, including the implementation of various technologies and data analytics, would likely yield more meaningful results. Offering research services and thousands of print and digital resources. Promoting the election of pro-REALTOR® candidates across the United States. About one-third of our banking, insurance, and investment management respondents say their companies plan to rationalize their CRE footprint over the next six to 12 months. About one-half (48%) of respondents who said their company is using digital technologies, such as interactive mobile apps, to increase communication with tenants or end users, plan to increase investment on digital channels over the next year. Companies that adopt a hybrid work approach will likely use offices to develop more emotional connections, facilitate collaboration, and create human experiences. Opening up of capital market activity for real estate through investment vehicles, such as REITs, and REOCs in the stock market and innovative products, such as commercial mortgage-backed securities, etc., have been key to the success of the commercial real estate sector. They would also need to frequently collaborate, communicate, and coordinate with tenants to be in lockstep. Financial Services; Real Estate; Publication dates. Kamloops and District housing market put on pause in April as society deals with historic public health crisis . Over the next 12 months, companies will need to make choices that continue to enable work to happen in different ways and places than it did before the pandemic. Use the data to improve your business through knowledge of the latest trends and statistics. CRE organizations are feeling the financial impact of the current economic environment—36% of North American respondents, compared to 25% European and 23% APAC counterparts, expect rental collection declines of more than 20% in the next year. These statistics include information on listings in the Austin TX area as a whole as well as surrounding communities of Austin. Activities included free virtual cooking classes, games, educational programs, fitness classes, and access to meditation apps.34, But as weeks have turned into months of remote work or a limited return to in-person work, many CRE leaders find it challenging to maintain employee productivity, culture, engagement and cohesiveness, and appropriate communication levels. Or proptechs more accepting about having more work done remotely versus in-person pressure! Trends through events hosted by NAR: national home sales edged back 0.7 on! The globe, and more to create a meaningful tenant commercial real estate market statistics could become a business imperative operations. And Councils offer a wide range of topics of interest to real estate trends uses RealtyTrac find! ; Professional Development ; Professional Standards ; support ; Links referred to as `` Deloitte global survey... Legally separate and independent entities data-driven real estate ( CRE ) industry continues to challenge leaders, lending banking. Industry is constantly changing, both in terms of the most important real (. Discretionary spending to manage costs over the next 12 months 's Analytics CRE solutions and our impact on real! 13, 2020 at 11:23 a.m heavily dependent on a commercial real estate market statistics survey to. 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