Commercial real estate industry is coming to terms with the sweeping, abrupt changes brought about by the pandemic and its aftermath and is transitioning to a new environment characterized by higher interest rates, new work/life expectations, and higher costs.
To better assess how the industry response will evolve over the next year, Commercial Observer commissioned a comprehensive market sentiment survey on issues related to the future of commercial real estate. Respondents were well aware of the challenges the industry faces but were confident that there were opportunities for those with the resources to seize them.
Among the most important findings:
• Despite the many challenges office faces—and in many instances because of them—almost a fifth of respondents (19%) said their companies plan to invest in office over the next 12 months.
• Almost half the respondents said their firms expect employees to be in the office either four or five days a week at the end of 18 months.
• Executives are worried about the rise of online marketplaces and listing services while excited about the potential of AI.
• Extreme weather is not only putting pressure on NOI but is also beginning to influence investment decisions.