Redevelopment opportunities paired with demand and incentives for including components of affordable housing and sustainable focused construction provide attractive opportunities for developers and investors. A key barrier to moving quickly to divest, however, is inertia. The 2022 pulse survey, conducted summer 2022 and underwritten by CBRE and Holland Partner Group, reveals institutional insight and intent towards future real estate investment. He also Chairs the board of Retirement Villages Group. McIntosh received a doctorate in Finance and Real Estate from the University of North Texas, as well as a Master of Business Arts in Real Estate and a Bachelor of Science in Business Education, both from Eastern Kentucky University. AFIRE is not engaged in providing tax, accounting, or legal advice through this publication. In the face of uncertainty on many fronts, we believe that commercial real estate deal activity in 2023 will continue to display its proven resiliency. . The survey was . Executive leadership hub - Whats important to the C-suite? They think such assurance should be provided by a regulated and independent expert, skilled in both the subject matter and audit methodologies and processes. Meanwhile, the office sub-sector remains characterized by the push-pull battle between employers and employees as companies seek higher-quality assets to lure workers back to the office. Insurance is not a substitute for building resilience. There are many reasons why housing remains unaffordable. He currently sits on the Advisory Board for UT Southwestern University Hospital and previously sat on the Board of Advisors of Baylor Health Care System Foundation. We have received your information. The degree of board governance is significant in increasing the likelihood that a company will consider divestment, the study shows. . These patterns are playing out in how real estate professionals view prospects in the 80 markets we tracked. Each member firm is a separate legal entity. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. As highlighted in previous deal outlooks, dry powder levels remain at all-time highs, with increasingly higher levels being raised through private vehicles such as non-traded REITs and private equity funds. In the end, it may be hard for employers to put the toothpaste back in the tube, as there appears to be a shift inconsumer behavior. His other book,Financial Shock: A 360 Look at the Subprime Mortgage Implosion, and How to Avoid the Next Financial Crisis, is described by the New York Times as the clearest guide to the financial crisis. Investment in the real estate sector grew from 14.6% in 2020 to 26.5% in 2021, while construction activity also showed signs of growth (measured in m3) increasing from 5.9% in 2020 to an impressive 45.9% in 2021 . The Cyprus property market is currently experiencing immensely challenging times while the environment is increasingly becoming more complex.This calls for a need for independent real estate consultants who are able to provide clients with specialized, independent and professional advice. Read more about the economic realities of ESG, Global Assurance Leader, PwC United Kingdom, Director of Investor Engagement, PwC United Kingdom, Global Investor Engagement Manager, PwC United Kingdom, Global Asset and Wealth Management Leader, Partner, PwC Ireland (Republic of), ESG Trust Solutions Leader, PwC United States. This makes it vital that companies tell their ESG story transparently and in a balanced way. This sentiment is having an impact on the real estate industry. Investors said they want to engage with companies on their ESG journey, but in the absence of real action and transparent communication through reporting, they will take action too using their power to vote and, if necessary, selling their investment and walking away. Jose Pellicer, Global Head of Investment Strategy, M&G Real Estate 12:00 - 12:20 Keynote - Europe's Emerging Trends and London's Position A discussion of ULI and PwC's latest Emerging Trends Europe report delving into the predictions of Europe's real estate market and in . An annual subscription to Investor Survey includes four quarterly data releases, plus access to PwCs annual Emerging Trends in Real Estate published each fall. She leads an agile team of data analysts and scientists who are responsible for creating strategies, roadmaps, policies, and procedures that guide all decisions related to data. Integrating ESG into your strategy helps manage risks and opportunities. 2023 Global Digital Trust Insights Survey. He formed HCP on his core Midwestern beliefs in Value, Ethics, Hard Work and Results. Zandi is a cofounder of Economy.com, which Moodys purchased in 2005. Of the local investors included in PwC's survey, over 51% confirmed their appetite to invest in property in the coming year. The 2021 survey, conducted in March 2021 and underwritten by Holland Partner Group, reflects investor sentiment and was designed to help understand the goals, challenges, and impacts of international investments on US real estate opportunities. Preferring to protect buildings through insurance rather than upgrading them to better withstand extreme weather may be more expensive in the short term. "The key challenges the real estate industry will be facing in the coming year are ESG and digitalisation. Quality of life and affordability play a big role in where people choose to live, and many of the markets that received relatively lower scores this year have inadequate infrastructure for their population size and growth. The hospitality sector continued to recover in the second half of 2022, driven by ever-increasing leisure demand through the summer months as well as the return of individual and group business travel. Download the report (PDF, 9.18MB) Emerging Trends in Real Estate - An uncertain impact Contact us Angus Johnston UK and EMEA Real Estate Industry Leader, Partner, PwC United Kingdom Tel: +44-7710-344-040 Email Gareth Lewis ETRE Leader, Director, PwC United Kingdom Tel: +44-7932-970-728 Email For example, since many institutional investors have been under-allocated in commercial real estate, they will not need to rebalance by selling real estate assets. The Reconnecting Communities Pilot provides $1 billion for projects that remove barriers to opportunity caused by legacy infrastructure. May 4, 2021 Take the 2021 AFIRE International Investor Survey The lag in return to office and its impact in driving subleasing, combined with record lease expirations, means sub-sector supply continues to outstrip demand creating a challenging environment, particularly for older assets. Even if we experience an economic downturn, as many economists expect, thats not projected to provide significant relief. Ahmed Naneesh, chief investment officer of a sovereign wealth fund and steward of one of the worlds largest real estate portfolios, is chairing a panel at the Singapore World Real Estate Forum, 2020s leading real estate event. So wheres the money going? McIntosh has served as President of the Real Estate Research Institute (RERI) and on the Board of Directors of the National Council of Real Estate Investment Fiduciaries (NCREIF), the American Real Estate Society (ARES), and the International Real Estate Society (IRES), the Investor Council of the National Association of Real Estate Investment Trusts (NAREIT), and on the Advisory Boards of several university real estate centers. His public service career was devoted to fostering, promoting and expanding economic opportunities across the country. Mar 03, 2023 (Prime PR Wire via Comtex) -- The report provides actual figures about the "Shared Services Market" and the challenges within the industry. Executive leadership hub - Whats important to the C-suite? She is a Certified Energy Manager (CEM) and holds a LEED AP O+M credential. Justin Travlos is currently Global Head of Responsible Investment at AXA IM Real Assets. The report is a follow up to the AFIRE 2021 International Investor Survey Report, released April 2021, and details evolutions in real estate investor sentiment over the past six months, alongside emergent outlooks for risk management in the US real estate. Real estate investment in 2021: global outlook We examine the global trends and in-demand assets for 2021 Paul Tostevin Director, Savills World Research [email protected] January 2021 After the exceptional challenges brought by Covid-19, the distribution of a vaccine brings new hope for 2021. To unlock value in deals, understand and invest in these three overlooked elements: culture, purpose and digital acumen. Another hindrance is homebuilders cautious construction pacing, plus labor shortages in the construction sector, which havent returned to pre-Great Recession levels. Karen Horstmann, Head of Acquisitions, Allianz Real Estate, Justin Travlos, Global Head of Responsible Investment, AXA IM Alts, Will McIntosh, PhD, Global Head of Research, USAA Real Estate, Clyde Holland, Executive Chairman, Holland Partner Group, Byron Carlock, Jr., US Real Estate Practice Leader, PwC, Revathi Greenwood, Global Head of Data & Insights, Cushman & Wakefield, Mark Zandi, PhD, Chief Economist, Moody's Analytics, Michael Hackman, CEO, Hackman Capital Partners, Becca Rushin, Director of ESG, Sustainability, and Social Responsibility, Jamestown, Christiane Conrads, EMEA Real Estate ESG Leader, PwC, Amy Erixon, Principal, President, Global Investment Management, Avison Young, Dr. David A. Thomas, President, Morehouse College, Caren Street, Principal, Squire Patton Boggs, Rodney Slater, Former US Secretary of Transportation (199397); Partner, Squire Patton Boggs, Spencer Levy, Global Chief Client Officer and Senior Economic Advisor, CBRE, Mark Gibson CEO, Capital Markets, Americas JLL, Congressman Bill Shuster, Senior Policy Advisor, Squire Patton Boggs, underwritten by CBRE and Holland Partner Group, 2022 AFIRE International Investor Survey Report: Summer 2022 Pulse, 2022 AFIRE International Investor Survey Report, 2022 AFIRE International Investor Survey Report (Members-Only Version), 2021 AFIRE International Investor Mid-Year Pulse Report, 2021 AFIRE International Investor Survey Report, Take the 2021 AFIRE International Investor Survey, ENTER YOUR INFORMATION BELOW TO DOWNLOAD THE 2022 AFTER INTERNATIONAL INVESTOR SURVEY, Byron Carlock leads PwCs US Real Estate Practice, Revathi Greenwood is the Global Head of Data and Insights for Cushman and Wakefield, Mark M. Zandi is chief economist of Moodys Analytics, Becca Rushin the Director of ESG at Jamestown, Avison Youngs Global Investment Management, Rodney Slater, former US Secretary of Transportation and current partner at Squire Patton Boggs. Prior to joining Jamestown in 2012, Rushin worked as a local government consultant for Clark Patterson Lee, where she served as Community Development Coordinator and Sustainability Commission Staff Liaison for the City of Dunwoody. Reinforced in this years Emerging Trends is the dominance of magnet markets, many of which are in warmer Sun Belt regions. Rising interest rates are eating into potential rates of return,making acquisition and construction debt more expensive, just when operating incomes seem destined to slide as the economy weakens. Prior to joining PwC in 2018, Christine worked for more than 10 years in real estate teams of leading international and national law firms. As firms pursue applications,you should conduct a thorough assessment of your organizations vulnerabilities to the metaverse and how to manage those risks. More than half of that will be allocated to the highway system, the largest such investment since the Interstate Highway System began construction in the 1950s. The world on the verge of the third wave. Thomas is the recipient of Washington Business JournalsMinority Business Leader of the Year award and the National Executive Forums Beacon Award and was named one of Atlantas 500 Most Powerful Leaders byAtlanta Magazine. However, we do not expect a mass departure from office buildings goingforward even under the most pessimistic scenarios. Commercial real estate deal activity moderated in the third quarter of 2022 compared to the same period in 2021, with the volume of asset-, portfolio- and entity-level transactions decelerating, primarily as a result of macroeconomic uncertainty, resulting in buyers and sellers unable to agree on pricing. Industry experts 2023 Emerging Trends in Real Estate, 2023 Global Digital Trust Insights Survey. This year, we found that many investors have moved to the sidelines or to other types of assets, including equities and bonds. Emerging Trends in Real Estate: Europe 2021 - An uncertain impact. The insiders we interviewed suggest that somewhere between 10 and 20 percent of the office real estate stock needs to be removed or repurposed. Deal activity in the industrial space declined by 18%, as compared to the red-hot comparative 2021 period, but we believe the sub-sector will remain buoyant as companies continue to play catch up in building out their logistics and storage capabilities, underpinned by the need to stockpile inventories for the ever-booming e-commerce market and capacity constrained supply chains. He is also a board member of the Harvard Club of Dallas and a board member emeritus of the Harvard Business School. The city is powered in part by the Masdar City 10MW Solar Power Plant, the first grid-connected renewable energy project in the UAE and the largest of its kind in the . The government couldalso expand affordable housing production. While consumers in search of experiential retail therapy have moderated e-commerce pandemic highs, the sub-sector remains strong due to increased capacity demands necessary to maintain inventory levels and offset supply chain volatility. Conrads has more than 10 years of experience in this dynamic field and has led interdisciplinary teams on ESG strategy projects and ESG due diligences, among others. Throughout 2022, we have continued to see resiliency in the real estate deals environment amid a challenging macro set-up. Please see www.pwc.com/structure for further details. In this age of continuous disruption, divestitures can be a critical tool in transforming and reconfiguring a firm. The Inflation Reduction Act adds spending for combating climate change and building energy security. Aspects of the industry are normalizing (i.e., reverting closer to their pre-COVID patterns), while others appear to have sustained permanent shifts to a new normal, following the pandemic-induced changes in how and where we use different types of properties.