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Sponsor Spotlight with CohnReznick: 2017 Commercial Real Estate Outlook

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2017 Commercial Real Estate Outlook

In the years following the Great Recession, property fundamentals stabilized across all sectors. Coupled with a continually improving economic outlook, the various constituencies of the real estate industry have enjoyed something close to open-field running. In 2016, we saw those conditions begin to evolve as deals became harder to find.

In the years following the Great Recession, property fundamentals stabilized across all sectors. Coupled with a continually improving economic outlook, the various constituencies of the real estate industry have enjoyed something close to open-field running. In 2016, we saw those conditions begin to evolve as deals became harder to find.

In 2017, the open field running of previous years has become more of an obstacle course, putting an emphasis on different skills and strategies: discipline, due diligence, operations management. But if the game has changed, the prize remains the same—yield in a highly competitive world where investors’ expectations irresolutely strong while lucrative deals seem to be precipitously diminishing.

In our 2017 Commercial Real Estate Outlook, CohnReznick’s National Commercial Real Estate Industry Practice shares ideas and perspectives on how key areas of this dynamic market are developing in 2017, as well as strategies and tactics to consider as you plot your course for the year.

Among those strategies: harnessing analytics and technology in operations and decision making. Forward thinking funds and operators can accelerate their own digital transformations by spending time studying and visiting companies in Silicon Valley and elsewhere, or attending gatherings like CES, the annual technology expo held every January in Las Vegas. The benefits of doing so will be two-fold. First, it will allow real estate practitioners to really see what it means to “go digital” by examining enterprises that have either led the way or have had to evolve in order to survive. Second, it will give a greater sense of the ongoing pace of change in personal technology. This remains a leading indicator of where expectations are headed in virtually all professional environments.

Further, this year’s Outlook is highlighted by an interview with Jeffrey D. DeBoer, President and CEO of the Real Estate Roundtable, who discusses legislative initiatives proposed by the Trump Administration and their potential implications for the commercial real estate industry. Among the insight DeBoer shares, “The country’s conventional economic metrics, like inflation and unemployment, have been positive for some time. But GDP growth is still anemic. So we’re excited at the prospect of a tax and regulatory policy discussion that focuses on trying to unshackle GDP growth through tax reform, infrastructure investment and changes to banking regulations—all of which would let capital take a bit more risk and hopefully would create more jobs.”

Read our Outlook.

by; Ronald Walker and David Kessler

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