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 | Jun 24, 2015
Philadelphia considers more incentives for green building
Developers could be allowed additional height, floor area on projects that meet benchmarks.
Codes and Standards | Jun 24, 2015
LEED building at Duke University may be retrofitted to prevent bird deaths
More birds die from colliding with buildings at Duke than on any other campus in a 45-school survey conducted by Augustana College. Duke is located along the Atlantic Flyway, a bird migration route.
Codes and Standards | Jun 24, 2015
Balcony collapse in Berkeley, Calif., prompts an examination of codes
Dry rot and too much weight appear to be the causes of a fatal accident at an eight-year-old building in Berkeley, Calif.
Codes and Standards | Jun 18, 2015
Guides to wood construction in high wind areas updated
The guides establish prescriptive, wind-resistive structural requirements for wood-frame buildings of different sizes and shapes.
Codes and Standards | Jun 18, 2015
New document addresses school safety and security
In an effort to balance security and fire safety features within codes, standards and planning, NFPA hosted a two-day workshop, “School Safety, Codes and Security”, last December. The findings are now available in an NFPA report.
Codes and Standards | Jun 18, 2015
Two myths regarding NFPA 101 Life Safety Code debunked
NFPA life safety engineer Ron Coté settles the debate over second egress doors and exit signs.
Codes and Standards | Jun 18, 2015
How to prevent corrosion in sprinkler system piping
The technical committees responsible for NFPA 13, Installation of Sprinkler Systems, have been looking at ways to eliminate or reduce corrosion in sprinkler systems for several revision cycles.
Codes and Standards | Jun 11, 2015
Steel Framing Alliance updates ‘Thermal Design and Code Compliance for Cold-Formed Steel Walls’ design guide
Includes results of new tests and addresses IECC and ASHRAE compliance paths.
Codes and Standards | Jun 11, 2015
Helena, Mont., may charge commercial developers a fee to fund public art
The fee would apply to new construction or alteration of nonresidential buildings of at least 20,000 sf.
Codes and Standards | Jun 11, 2015
DBIA releases new document on choosing a project delivery method
Provides owners and others with factors to consider when choosing the best method of delivery for their project.