News & Media
LOS ANGELES – According to the Emerging Trends in Real Estate 2024 report, “The Great Reset” has shifted trends in the property sector. Real estate professionals should not rely on past benchmarks to forecast how the market will grow in the future.
Andrew Alperstein, a leader with PwC’s U.S. real estate practice, said, “Despite economic headwinds and challenges with obtaining credit, there are opportunities available for high-quality properties that meet the needs of investors and tenants. Firms must learn to ride out the current short-term risks and adapt their growth strategy to succeed in this period of higher-for-longer interest rates.”
In retail, tenant demand has increased significantly in the last 18 months. The U.S. ended 2023 with roughly 35 million square feet of new retail product across all shopping center types.
Real estate professionals also realize that hybrid work is here to stay, and the office market will not return to its pre-pandemic state. High-vacancy office buildings are being considered for repurposing, but some may not be economically converted but could be demolished and the land repurposed.
Credit has become more expensive, however, and many borrowers are trying to hold onto their existing debt. A lack of credit hasn’t stopped some investors from pursuing deals or taking advantage of undervalued assets.
Other trends facing the market include the use of artificial intelligence and tackling climate-related concerns.
Source: Los Angeles Times (05/19/24)
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