Market forces including trade policy, labor shortages, and complex approval processes are among the top concerns of real estate development executives according to a report by Altus Group.
The Altus Group Real Estate Development Trends Report is based on a survey of real estate leaders around the world. The report says that 68% of respondents named cost escalation as the biggest business challenge they are facing over the next five years.
Other findings include:
· 65% are facing challenges with labor shortages, which are exacerbated by government policy and booming demand
· 60% are concerned about the development approval process which is often complex and protracted
· 34% view cross-border trade policy as having a negative impact on the industry as uncertainty continues regarding international tariffs and trade agreements
“It’s clear from the report that the global development sector is facing an increasingly complex set of challenges and rapid change, from escalating construction costs to a sea-change in the development financing environment,” said Bob Courteau, Chief Executive Officer, Altus Group. “However, development leaders clearly see significant opportunities to manage risk and take advantage of changing conditions through a number of future-ready strategies including investments in technology and performance management, along with consideration of new ways of managing and financing projects.”
Related Stories
Codes and Standards | May 11, 2016
Current California seismic codes provide safety, resiliency, but needed upgrades present challenge
Los Angeles requires seismic retrofits, but other cities do not.
Codes and Standards | May 10, 2016
Apple spars with Cupertino, Calif., mayor over strained city infrastructure
Apple’s new ‘spaceship’ campus project prompts questions about whether the company should pay more to offset traffic woes.
Codes and Standards | May 9, 2016
Safety Stand-Down yields proposals to boost construction safety
One example: Gilbane encourages safety harnesses for all working above 6 feet.
Codes and Standards | May 9, 2016
EcoDistricts unveils sustainable neighborhood framework
Focus is on equity, resilience, and climate protection.
School Construction | May 3, 2016
Florida clamps down on school construction spending
Critics fear rules will hamper ability to build schools with desired features.
Resiliency | May 2, 2016
Connecticut to develop new code standards for resiliency
Expected more frequent severe weather events due to climate change prompts review.
Contractors | Apr 29, 2016
OSHA issues advisory to protect workers from Zika virus
Construction industry workers considered at high risk.
Codes and Standards | Apr 28, 2016
New research finds 30 measures to significantly cut energy use
ASHRAE’s prescription cuts across all building types and climates.
Codes and Standards | Apr 27, 2016
Florida gives developers more time to install first responder radio signal systems
Expensive upgrades can be postponed for several years.
Codes and Standards | Apr 25, 2016
San Francisco becomes first big U.S. city to require solar panels on new buildings
Pertains to commercial and residential buildings shorter than 10 stories.