58 %
BY THE NUMBERS
1
What ’ s This World Coming To ? Political Unrest & Global Economic Health
SPRING 2024
CRE ’ s Top Ten Issues Affecting Real Estate ®
The economy , capital costs , and changing behaviors in the wake of the pandemic are all themes that are at the forefront in the 2023-2024 Top Ten Issues Affecting Real Estate ® by the Counselors of Real Estate ®.
Inflation , high-interest rates , bank stress , and tightening liquidity are just a few of the many risks at play in the current market .
$ 1.5in commercial and
TRILLION
multifamily debt
Fed rate increases have resulted in an inverted yield curve , while capital costs are creating refi risk with an estimated $ 1.5 trillion in commercial and multifamily debt set to mature before the end of 2025 .
Now in its 12th year , the Top Ten Issues identifies current and emerging issues expected to have the most significant impact on all sectors of real estate . “ It ’ s a snapshot in time , but it ’ s intended to be forward-looking ,” says Kathleen Rose , CCIM , CRE , President and CEO of Rose & Associates Southeast Inc .
2
Do I Have To Go To The Office ? Occupiers , Obsolescence , and Devaluation
The Counselors of Real Estate takes a very methodical approach , surveying its approximately 1,000 members in an iterative process that starts with approximately 20 issues and common themes that are narrowed and ranked to come up with a final top ten . “ Throughout the process , we are continually reviewing to be sure the issues selected haven ’ t dramatically shifted as economies and markets are not static ,” adds Rose .
For real estate industry participants who are navigating in this complex environment it ’ s important to not be reactive and to be proactive , and to also look at multiple data points , advises Rose . “ It ’ s not just about interest rates or cap rates . It ’ s also about understanding the economy and movements in the markets , particularly in the labor market as jobs and migration patterns influence commercial real estate ,” she says .
According to WFH Research in 2023 , 58 % of workers are now fully back in the office , while 29 % are working hybrid schedules and 13 % are fully work-from-home .
29 % hybrid
13 % work-from-home
58 %
back in the office
As the future of hybrid work continues to unfold , the near-term focus is centering on calibrating hybrid schedules and setting new expectations for work that needs to be done in person .
Scan to download the full report .
Listen now to hear Kathleen go more indepth about the Top Ten in our recent podcast .
The Counselors of Real Estate ®
24 | CCIM . COM