Deloitte study: The global commercial real estate industry continues to grow, despite economic volatility
Global commercial real estate leaders are optimistic about the industry’s prospects over the coming year, despite global economic volatility, according to Deloitte 2020 Commercial Real Estate Outlook. 76 percent of respondents expect a positive evolution of the industry in the next period.
The survey shows that that the tenant experience has become a top priority for most commercial real estate leaders, with a focus on investment in new technologies.
Three-quarters of the respondents are optimistic and very optimistic about the industry’s performance over the next year, 14 percent are neutral and 10 percent are pessimistic. Respondents in Asia are the most optimistic, followed by those in North America and Europe.
“The high level of optimism among the commercial real estate players is not surprising. In times of economic volatility, the investors’ attention goes towards tangible, high quality assets, which provide a medium or long-term investment horizon.
When sudden economic changes occur, the real estate industry typically reacts within six to 12 months. In Romania, the commercial real estate sector is one of the most stable, given that demand is still higher than the supply.
Considering the competition on the labor market, on one hand, and the consumption increase, on the other hand, the interest for office and commercial spaces is natural and will remain high over the next period,” said Alexandra Smedoiu, Partner, Deloitte Romania, Real Estate Industry Leader.
In this year’s outlook, Deloitte experts explore a new element, the impact of the new technologies that are reshaping tenants and end users’ experience, such as AI (artificial intelligence) or IoT (Internet of Things). In this context, 92 percent of respondents plan to maintain or increase their tenant experience-related technology investments. As for the smart buildings, they will become the norm over the next five years, according to approximately three-quarters of respondents.
This year’s commercial real estate outlook surveyed 750 executives – owners/operators, developers, brokers and investors – in ten countries form Europe, Asia, Australia and North America.
Deloitte provides worldwide audit, consulting, legal, financial advisory, risk advisory, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500 companies through a globally connected network of member firms in more than 150 countries and territories, bringing world-class capabilities, insights, and high-quality service to address clients’ most complex business challenges. Deloitte’s goal is to make an impact that matters through its more than 312,000 professionals.