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
| Aug 27, 2014
Liberty Building Forensics cautions hotel building teams on moisture, mold issues
Liberty Building Forensics Group, a building forensics firm warned building teams working on hotel projects to be on guard against moisture intrusion and mold.
| Aug 27, 2014
Requirement for site safety inspectors hampering construction in New York City
New York City’s regulation that requires contractors to hire independent safety inspectors for job sites is holding up projects worth millions of dollars, contractors say.
| Aug 27, 2014
Turkish government orders demolition of residential towers in Istanbul
Citing negative effects to a world heritage site, the Turkish central government has ruled that the recently completed OnaltiDokuz Residence towers must be demolished.
| Aug 21, 2014
Industry groups agree to streamline green building tool coordination and development
Major building industry groups the International Code Council (ICC), ASHRAE, the American Institute of Architects (AIA), the Illuminating Engineering Society of North America (IES), and the U.S. Green Building Council (USGBC) have agreed to collaborate on the development of Standard 189.1, the International Green Construction Code (IgCC), and the LEED green building program.
| Aug 21, 2014
Performance-based zoning: U.S. cities starting to loosen zoning regulations
Driven by New Urbanism, more than two dozen communities in the U.S. have loosened zoning restrictions in recent years.
| Aug 21, 2014
Meeting to finalize amendments to green property underwriting standard
The National Public Meeting for Resiliency + Infrastructure Consensus Underwriting Standard Amendments will take place September 16, from 9 a.m.-12p.m. at Perkins+Will, 1250 24th St. NW, Washington, DC in the World Wildlife Fund Building.
| Aug 21, 2014
American Iron and Steel Institute revises 14 test standards
The American Iron and Steel Institute (AISI) published 14 revised test standards in its S900-series.
| Aug 14, 2014
Mississippi county rejects adoption of state building code
The county board of supervisors voted unanimously to opt out of the state building code.
| Aug 14, 2014
Boards at odds over North Carolina county’s CM-at-Risk policy
Some local small contractors are not pleased with the school board’s CM-at-Risk policy that was instituted in 2007. The county’s board of commissioners has offered a sympathetic ear to their complaints
| Aug 14, 2014
2014 National Electrical Code now effective in 12 states; 11 more to come online by January
The National Fire Protection Association (NFPA) says that the 2014 edition of the National Electrical Code(NEC) is now effective in 12 states: Alabama, Colorado, Idaho, Maine, Massachusetts, Minnesota, New Mexico, Rhode Island, South Dakota, Vermont, Washington and Wyoming.
