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 6, 2021
Blue roofs can provide relief to overwhelmed stormwater systems
Benefits most evident in industrial commercial areas.
Codes and Standards | May 5, 2021
Majority of schools took steps to improve air quality during pandemic
Districts still have unmet needs, face high costs and outdated building infrastructure.
Codes and Standards | May 4, 2021
Cost to keep Miami dry over next few decades is $4 billion
Rising seas demand big investment.
Codes and Standards | May 3, 2021
Fire stops critical to preserving three-decker housing
Old multi-family structures continue to provide badly needed homes in urban zones.
Codes and Standards | Apr 29, 2021
Dept. of Energy publishes energy savings analysis for ANSI/ASHRAE/IES Standard 90.1-2019
More than 4% savings for commercial buildings found for the updated code.
Codes and Standards | Apr 28, 2021
Building-integrated solar power turns buildings into power plants
Multiple alternatives could replace or complement rack-mounted PV arrays.
Codes and Standards | Apr 27, 2021
Ten real estate groups sign on to New York State’s high-rise decarbonization challenge
Each signee commits to carbon neutrality in one or more high-rise buildings it owns.
Codes and Standards | Apr 26, 2021
Dozens of companies, organizations call for Congress to double Energy Star funding
Despite broad support, program’s budget has steadily declined in recent years.
Codes and Standards | Apr 22, 2021
Alabama fire chiefs oppose proposal to change school building code oversight
Bill would move code compliance control from state to local boards.
Codes and Standards | Apr 21, 2021
After dry winter, California ramps up wildfire prevention efforts
State to spend half a billion dollars on projects including making buildings more fire resistant.