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
| Jun 4, 2014
Green initiative may scuttle high-rise projects in Berkeley, California, critics charge
Volunteers in Berkeley, Calif., are collecting signatures for the “Green Downtown & Public Commons Initiative,” a controversial measure that critics charge would halt some development in the city.
| Jun 2, 2014
Parking structures group launches LEED-type program for parking garages
The Green Parking Council, an affiliate of the International Parking Institute, has launched the Green Garage Certification program, the parking industry equivalent of LEED certification.
| May 28, 2014
Commercial building measurement standard could meet resistance from owners
For some building owners, a new measurement standard could mean that their building would shrink in size and lose value.
| May 28, 2014
Resiliency measures for hurricanes can help with tornadoes
Architect Butch Grimes, who examined the wreckage after a half-mile tornado struck Tuscaloosa, Ala., believes toughening building codes can reduce damage from twisters.
| May 28, 2014
Rooftop wind turbines becoming green status symbol in New York City
New York City developers are using rooftop wind turbines in an effort to attract buyers by highlighting a building’s green credentials.
| May 28, 2014
Peer review process under way for the WELL Building Standard
The standard is the first protocol of its kind that focuses on improving human wellness within the built environment by identifying specific conditions that, when holistically integrated into building interiors, enhance the health and wellbeing of the occupants.
| May 22, 2014
ASHRAE releases best practice guide for liquid cooling systems in data centers
The publication provides guidelines on interface requirements between chilled-water systems and technology cooling systems and on the requirements of liquid-cooled systems that attach to a datacom electronics rack.
| May 22, 2014
Colorado approves $4.2B data center said to be invulnerable to power outages
The Niobrara Data Center Energy Park project in Colorado will be the first data center to be fully self-contained with its own self-generated energy production facility.
| May 22, 2014
Energy Department analysis shows efficiency gains from ASHRAE 2013 energy standard
Preliminary DOE analysis shows that the ASHRAE/IES’s 2013 energy efficiency standard contains energy savings over the 2010 standard of 8.5% source energy and 7.6% site energy.
| May 22, 2014
Federal disaster policy should focus on mitigation, insurance group says
Federal disaster policy should shift its focus toward mitigation in order to reduce future disaster costs, the National Association of Mutual Insurance Companies says.
