Deloitte Releases Insights 2023 Commercial Real Estate Outlook
New York, New York, June 20, 2023-Deloitte has released its Insights 2023 Commercial Real Estate Outlook, which includes these key findings:
* Most global real estate CFOs are much more cautious with their 2023 operating plans: Our global survey reveals that only 40% of respondents expect to finish 2022 with higher revenues than last year, and 33% expect to cut expenses. They cite sustained high inflation, workforce management, and cyber risk as top risks to financial performance for the coming year.
* Owners and investors are targeting offices, digital economy, and logistics properties. Downtown and suburban offices rank first and third overall for global risk-adjusted asset class opportunities.
* ESG-related actions are still top of mind, but most firms need guidance on how to implement changes and monitor progress. Only 12% of the total industry surveyed, and 17% of the required public REITs, are prepared to immediately respond to regulatory action.
* The evolving global regulatory environment is expected to bring changes to tax structure and modernization to the forefront. Potential changes to transfer pricing and profit-sharing and increases in tax rates could have the greatest impact on commercial real estate (CRE) firms.
* Regional approaches are emerging to attract and retain talent. Firms are focusing on increasing workplace automation, bolstering diversity, equity, and inclusion (DE&I) initiatives, accelerating career growth opportunities, and offering more recognition and awards programs.
* Real estate firms of all sizes are seeking outsourcing opportunities to optimize operational capacities. There is continued interest in leveraging proptechs to help offer complementary, innovative services.
* While technology budgets tend to be more reserved, those who plan to increase spend have opportunities to improve efficiency and explore new revenue opportunities in fundraising and digital assets.