Sheldon Gross Realty, based here, today shared just-released information about important business disruptors – the issues and trends impacting U.S. commercial and residential real estate. Sheldon Gross, president and CEO of the agency, is a member of The Counselors of Real Estate® (CRE), the global professional association which annually announces The CRE® Top Ten Issues Affecting Real Estate, an update of market trends and conditions which influence real estate opportunities and risks. Members of CRE are recognized property experts who provide specialized and objective advisory services to clients; membership is by invitation.
“Political polarization and global uncertainty lead the 2017-18 list because divisiveness – which is occurring at all levels (and is fueled by news headlines, political beliefs and budget constraints) – makes decision making difficult,” explains Gross. “Global uncertainty is also creating challenges for investment and employment in non-U.S. markets, and could negatively impact foreign investment in U.S. properties.”
Other issues include the technology boom – causing extraordinary changes in how real estate is bought, sold, valued, and managed. Robotics, predicted to replace up to 47% of today’s jobs, clearly will have a serious impact on everything from housing and retail to business offices, tenants and leasing. Two distinct generations – the Baby Boomers and Millennials – that live and work side-by-side, now also present challenges in that they have quite different preferences in the kinds of offices in which they wish to work, as well as housing choices.
The other disruptors on the CRE Top Ten Issues list are:
• Retail disruption – with malls and downtowns adapting to nationwide store closures with new kinds of experience-driven offerings and the reinvention of the grocery stores which have anchored many upscale shopping malls.
• Infrastructure investment – such as bridges, ports, and roads, which are now attracting new private investors.
• Housing: the big mismatch – affordability at all levels is challenging home ownership and even who can rent and where.