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 | Jan 4, 2016
Denver broadens its use of design reviews as construction booms
Support strong, but some wary of giving more say to review boards.
Codes and Standards | Dec 23, 2015
International Code Council approves updates based on NIST study of Joplin, Mo. tornado
Applies to schools and other high occupancy buildings.
Codes and Standards | Dec 21, 2015
Changing building codes to protect against mass shootings at odds with other safety measures
Fire and other emergencies require getting people out quickly, not locking down sections.
Codes and Standards | Dec 18, 2015
Codes should be updated to reflect lessons learned from recent extreme weather events
More can be done to boost resiliency to flooding, extended power outages.
Codes and Standards | Dec 13, 2015
Los Angeles launches ‘Drop 100′ campaign to reduce water use in commercial buildings
Goal is to save 100 million gallons annually.
Codes and Standards | Dec 1, 2015
More than 50 design, construction, and real estate firms urge action on climate change
Call for policymakers to move on one of the ‘greatest economic opportunities of the 21st Century’
Codes and Standards | Oct 26, 2015
Chicago suburb considers bird collision deterrent requirement on all new buildings
The rule would mandate that new commercial, multifamily structures comply with LEED pilot program.
Codes and Standards | Oct 16, 2015
Anchorage may raise building height restrictions that would block precious winter sunlight
Controversial measure is part of plan to spur development.
Codes and Standards | Oct 16, 2015
Appellate court enacts nationwide stay on controversial expansion of Clean Water Act
New EPA rule suspended until court cases settled.
Codes and Standards | Oct 9, 2015
New California law means commercial building benchmarking program will be implemented
Multifamily housing to be included, a first for a U.S. state.