CRE industry experiences rapid changes

The commercial market is changing.

Many property management companies may have experienced multiple changes and emerging trends in the commercial real estate industry, and this may be a sign that there may be a need for adjusting, according to a report from the Urban Land Institute.

The many emerging trends in the commercial real estate market are changing the landscape significantly, which could affect how commercial property managers run their operations. One major issue is technological changes, ULI's report explained. There was an increase in technological advances in recent years, and this has streamlined work for many working in the industry. However, this has also taken away the need for employees in many facets of the industry.

There also is a heightened investment risk in the market, as the economic situation at the global level is uncertain, at best, the report noted. Many industry members could continue to struggle ensuring they have settled debt issues.

"Being successful in this environment means more than thinking differently about what's built going forward," said Peter Rummell, chairman of ULI. "The real opportunities for success and leadership lie in how well we adapt what we've already built to fit the new dynamics of a world upended by demographic and economic shifts, environmental concerns and continuous, immediate advances in technology."

Consumer-related issues remain
Many consumers may have difficulty affording expenses in the near future. The report said that unemployment could continue to be a problem, and wages may not rise significantly. This is because there may be more issues revolving around the job market, as many jobs are moving to markets where pay is lower.

A significant portion of seniors could also be struggling with funds, as many government retirement programs and other ways of saving for old age is becoming more difficult, ULI noted. This could lead to a smaller group of well-off consumers being able to afford items due to a sufficient amount of savings.

The gap between the wealthy and poor could also increase, which may make funding scarce for many, the report explained. This could make credit more difficult to obtain, while employment may also be harder to find. Younger people may also see employment issues, as job prospects with an ability to move up may be increasingly difficult for the near future.

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