After working as the Director of Corporate Finance for KPMG in London from 2003 to 2012, she moved to the U.S., where she most recently held the position of Americas Head of Research at Cushman & Wakefield. Such real-world activities as conferences, trade shows, exhibitions, weddings, sporting events and other social gatherings could be enhanced with the metaverse. The clear message: the time for a single set of globally aligned non-financial reporting standards is here. Forecast methodology notes The forecast for the value of institutional-grade real estate assets is based on a model that utilises economic activity as measured by GDP, based on Copyright 2022 President & Fellows of Harvard College. As US Secretary of Transportation under President Clinton, Slater passed several historic legislative initiatives over his career. His public service career was devoted to fostering, promoting and expanding economic opportunities across the country. As firms pursue applications,you should conduct a thorough assessment of your organizations vulnerabilities to the metaverse and how to manage those risks. Another main focus of her advice is in the area of ESG. Demand outpacing supply, compounded by new asset delivery constraints due to input cost inflation, has been seen as rents continue to climb. ESG is becoming more integrated into investment decision making, with a significant majority of respondents wanting companies to embed ESG into corporate strategy. Quickly evaluate contemporary and historical survey data and analyze trends across over 40 markets with an easy-to-use dashboard that puts more than 20 years of commercial real estate data at your fingertips. For subscription information, please email [email protected]. He is chairman of the Board of Directors of the Squire Patton Boggs Foundation, which promotes the role of public service and pro bono work in the practice of law and the development of public policy. Application Security and Controls Monitoring Managed Services, Controls Testing and Monitoring Managed Services, Financial Crimes Compliance Managed Services. Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 . If you change your mind at any time about wishing to receive the information from us, you can send us an email message using the Contact Us page. Your company doesnt need to be a metaverse leader today, but you should explore the potential implications to your organization. The outlook for well-located assets is positive as sustained demand signals that consumers are continuing to point their wallets at high-quality, experiential retail therapy. An additional $3 billion was included within the Inflation Reduction Act of 2022, which furthers this initiative. His resume also includes three years as Executive Vice President and Chief Investment Officer of Post Properties and nine years as Managing Director for Crow Holdings International. Additionally, Slater is a founding partner of the Washington DC Nationals Baseball team and Chair Emeritus of the Washington DC Nationals Youth Baseball Academy. Security of income in non-core assets is causing concern, but 55% of investors expect to be net buyers of real estate in 2021. - 2023 PwC. Learn more today! He is a trusted adviser to policymakers and an influential source of economic analysis. Long-term investors are recapitalizing existing funds through continuation vehicles in sectors experiencing strong demand drivers and favorable supply. Decades of commercial real estate real estate survey data in a streamlined digital hub. Though population growth slowed sharply during the pandemic, demand for rental housing is rising from the many young adults eager to start their own households after moving back in with their parents during COVID. The commercial real estate sector has plenty of motivation to act on theenormous potential impact of unchecked climate change. They top the Emerging Trends Markets to Watch standings, while the number of markets in cold-weather climates in the Northeast and Midwest decline in ranking. PwC Real Estate 2020: Building the future 7 1 Prudential Real Estate Investors: 'A Bird's Eye View of Global Real Estate Markets', 2012 update, February 2012. For nearly 30 years, AFIRE has produced the annual International Investor Survey, which measures sentiment, trends, and capital flows for global institutional investment. Contact Details AIMA/PwC Global Distribution Survey 2017/18 Name Company Email Address 1. Most workers are still not back in the office nearly as often as they were before the pandemic. Developer Survey. She holds a Bachelor of Arts in Spanish and Environmental Policy from Sewanee: the University of the South and a Master of Science in Sustainable Development: Environmental Policy and Management from Utrecht University. This year, we found that many investors have moved to the sidelines or to other types of assets, including equities and bonds. May 4, 2021 Take the 2021 AFIRE International Investor Survey While higher costs of capital add to the overall deal consideration, inflationary pressures also affect the replacement costs of assets, leading to increased competition for existing assets as investors look to deploy dry powder. The survey shows a marked decline in business confidence for 2021, with almost half the respondents expecting a fall in profits and a quarter anticipating job losses. With more than 30 years of industry experience she has acquired, developed, and repositioned portfolios valued in excess of $9 billion, and completed large scale rezoning and development projects in numerous North American cities. Outside of the office sector, which is lagging behind as employers allow increased remote work flexibility to keep and attract talent, commercial real estate fundamentals continue to strengthen. Overall, the fundamental issue for many investors is how long the Fed will keep raising rates. More than half of that will be allocated to the highway system, the largest such investment since the Interstate Highway System began construction in the 1950s. 140 In 2020 there were approx. Create custom graphs with an interactive tool that helps make valuation analyses and reports easier for investors, lenders, appraisers, assessors, asset managers and other real estate professionals. Affordable housing developers also bemoan the fact that todays increasingly complex deals now require more underwriting from more capital sources. You'll discover timely information related to capitalization and discount rates, and other key cash flow assumptions. Moving forward, we expect this to continue and for experiential themes to comprise a more significant share of overall volume.. Investors want to know that a company takes managing ESG issues in the business seriously. Source: PwC Real Estate Investor Survey; personal survey conducted by PwC during April 2021. Explore key findings from PwCs Workforce Hopes and Fears 2022 survey of 52,000+ workers across 44 countries and territories worldwide. Real estate data can be complex. Finance; Financing & Loans, real estate investment; investment; capital markets. Data from this survey will only be presented in the aggregate and will not be attributed to any specific person or firm. TheAtlanta metro area scored higher in this years survey, jumping to the number three-ranked spot from number eight last year. "The key challenges the real estate industry will be facing in the coming year are ESG and digitalisation. Our sector and market-wide Global M&A Industry Trends: 2023 Outlook reveals strong pockets of activity. The RealtyRates.com quarterly Developer Survey includes actual and pro-forma discount rates for 22 sell-out property types including subdivisions, PUDs, business and industrial parks, and residential and commercial condominiums and co-ops. Having a positive attitude towards divestitures and developing a reinvestment plan also can help companies overcome inertia. Executive leadership hub - What's important to the C-suite? The $1 trillion bill provides $550 billion in new spending over five years and eclipses the $305 billion infrastructure bill that President Obama signed into law at the end of 2015. believe the quality of current ESG reporting, on average, is good. The investors in our survey sent a clear message: if companies take the right actions on ESG, investors will support it, but they want to be brought along for the ride, however bumpy it might be. Developer Survey. With a Bachelor of Science and Master of City Planning in City Planning and Real Estate Development from the Massachusetts Institute of Technology, she is an active speaker, blogger and publisher of topical reports. However, the post-pandemic recovery is continuing and we expect it to do so, particularly given the demand from leisure travelers willing to spend on experiential hospitality, as well as the status of the sub-sector as a high-conviction theme in the portfolio of many asset managers. Further boosting demand is the increasing number of younger adults choosing to live alone, perhaps a reaction to lockdown claustrophobia. Within the multifamily industry, Holland has taken a significant lead in policy research and the development of new multi-family product concepts focused on high-density, urban infill and mixed-use opportunities. Rents, however, are expected to slow in certain markets as new supply comes online. The city is powered in part by the Masdar City 10MW Solar Power Plant, the first grid-connected renewable energy project in the UAE and the largest of its kind in the . And most importantly, show progress against the plan. Real Estate Assurance, PwC Austria. The hotel industry is recovering, apartments are doing very well and rents are rising in all sectors driven by lack of supply and inflationary pressures. Each member firm is a separate legal entity. 1. Zandi is a cofounder of Economy.com, which Moodys purchased in 2005. Commercial real estate deal activity moderated in the third quarter of 2022 compared to the same period in 2021, with the volume of asset-, portfolio- and entity-level transactions decelerating, primarily as a result of macroeconomic uncertainty, resulting in buyers and sellers unable to agree on pricing. Scale | PropTech (2023) Our 2023 PwC Scale PropTech Programme Cohort has launched and we're excited to be working with our 6 chosen scale-ups to help solve important problems for the Real Estate industry. Its grounded and unbiased; you are just publishing the facts as presented to you., "Thanks for producing quality reports, maintaining quality research and providing unbiased analyses. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. No content published or shared by AFIRE is to be construed as a recommendation to buy or sell any asset. Please see www.pwc.com/structure for further details. Its still too soon to know if such employer demands will translate to morein-office work, as previous requests have had little apparent impact. This makes it vital that companies tell their ESG story transparently and in a balanced way. Please supply the following basic identifying information. They also understand that there is a cost to addressing ESG issues, and think companies should make those expenditures even if that means a hit to short-term profits. As a recognized industry leader in real estate technology, greening strategies and smart cities, she has advised public agencies, pensions and governments on issues ranging from affordable housing to ecological urbanism. Get timely data, trends and commentary from the authoritative source trusted for decades. Various sources suggest that less than half of workers actuallygo into an office on a given day, at least in major markets. For questions, contact us. 2017 Since 2011, Karen has primarily focused on core and core-plus commercial investments in US gateway markets. Digital Edition Enjoy the interactivity and convenience of the digital edition of Valuation. So what happened? Their plan: Ride out the current slump and reposition their firms for another period of sustained growth and strong returns. Private Equity Accounting, Investor Reporting and Beyond takes the discussion around private equity accounting to the next level beyond the basic private equity accounting principles identifying areas of importance where things can go wrong and delving into the intimate details of the different sub-asset classes such as real estate funds, Technology can play a bigger role in actually delivering homes by helping bring innovation and cost efficiencies to a sector that has been notoriously slow to change. Nevertheless,the US Securities and Exchange Commission is forging ahead, as evidenced in its May 2022 ESG disclosure regulations. The top fundamental reason: a chronic undersupply of properties, especially at affordable prices. PwC Real Estate Investor Survey: 1Q 2019 4.50% - 7.00% 5.66% NKF Self-storage Investor Survey: 3Q 2019 4.50% - 8.50% 5.60% Source: Compiled by NKF "A method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, either by dividing the net income . ESG information is most commonly sourced from annual reports and sustainability reports. Carlock earned his Bachelor of Business Arts at Harding University and participated in the International Asian Studies Program at The Chinese University of Hong Kong as a Rotary Scholar. McIntosh is a Fellow of the Homer Hoyt Institute. Source: Refinitiv (LSEG), Dealogic, and PwC Analysis. Today, most people dont want to commute to the office more than occasionally. Almost all of this years survey of top-ranked real estate markets are in faster-growing southern and western regions and away from the coasts. Travlos professional background is in valuation, project management and architecture. As Chairman of the House Transportation and Infrastructure Committee, Congressman Shuster spearheaded legislation aimed at strengthening US infrastructure, including the Fixing Americas Surface Transportation Act, the Passenger Rail Reform and Investment Act, the Protecting our Infrastructure of Pipelines and Enhancing Safety Act, the Federal Aviation Administration Reauthorization Act of 2018 and multiple Water Resources Developments Act and authorizations of the US Coast Guard. Some information included in AFIRE research has been obtained from third-party sources considered to be reliable, though the publisher is not responsible for guaranteeing the accuracy of third-party information. Analysis for real estate audit committees and executive teams to remain updated on the most recent trends in the industry. The RealtyRates.com quarterly Developer Survey includes actual and pro-forma discount rates for 22 sell-out property types including subdivisions, PUDs, business and industrial parks, and residential and commercial condominiums and co-ops. As highlighted in previous deal outlooks, dry powder levels remain at all-time highs, with increasingly higher levels being raised through private vehicles such as non-traded REITs and private equity funds. AFIRE is not engaged in providing tax, accounting, or legal advice through this publication. Read more about the economic realities of ESG, Global Assurance Leader, PwC United Kingdom, Director of Investor Engagement, PwC United Kingdom, Global Investor Engagement Manager, PwC United Kingdom, Global Asset and Wealth Management Leader, Partner, PwC Ireland (Republic of), ESG Trust Solutions Leader, PwC United States. However, it also provides funding for broadband internet, power, environmental remediation and resilience, among other programs. (PDF) Education Catalog (PDF) International. Mar 03, 2023 (Prime PR Wire via Comtex) -- The report provides actual figures about the "Shared Services Market" and the challenges within the industry. In the face of uncertainty on many fronts, we believe that commercial real estate deal activity in 2023 will continue to display its proven resiliency. Another hindrance is homebuilders cautious construction pacing, plus labor shortages in the construction sector, which havent returned to pre-Great Recession levels. At the same time, just a quarter (25%) of Irish CEOs are prepared to invest significantly in leadership and talent development. Meanwhile, the office sub-sector remains characterized by the push-pull battle between employers and employees as companies seek higher-quality assets to lure workers back to the office. As one real estate professional told us, Well look back in 10 years, and the prices that seem astronomical today will seem like a bargain.. Now in its 18th edition, the report explores two shifts which are, as one interviewee puts it, 'not on the same wavelength': a cyclical downturn juxtaposed with long-term structural . Enter your email address and password associated with your membership to log into AFIRE.org. Investor Survey helps make it simple. Real Estate Tax, PwC Austria. Investment in the real estate sector grew from 14.6% in 2020 to 26.5% in 2021, while construction activity also showed signs of growth (measured in m3) increasing from 5.9% in 2020 to an impressive 45.9% in 2021 . No matter the trends, we believe companies must be flexible and adapt quickly to market changes. I really enjoy the presentations related to the survey data.". However, it is unclear whether capital markets are allocating resources to companies that need it for progressing towards greater sustainability. He is a member of the firms Investment and Executive Committees. He is a graduate of the School of Mortgage Banking of the Mortgage Bankers Association of America and served as a Faculty Fellow. Insurance can protect building owners against damage loss, but not against demographic or investor sentiment changes. He has been recognized by the industry for excellence in urban planning and design, and his work has received numerous awards from the Urban Land Institute, the National Multifamily Housing Council, and Multi-Family Executive. Millions of people have taken matters into their own hands and are moving to markets, including the Sun Belt, where they can afford to buy a house. By submitting your email address, you acknowledge that you have read the Privacy Statement and that you consent to our processing data in accordance with the Privacy Statement (including international transfers). This yearsEmerging Trendsalso reconfirms two sometimes contradictory property market trends: Aspects of the industry are normalizing (reverting to pre-COVID patterns), while others appear to have permanently changedas the pandemic has altered how and where we use different types of properties. We noted in a prior trend that many hyper-growth markets have been unable to keep up with building critical infrastructure, particularly related to transportation. Moreover, insurance coverage is becoming increasingly expensive in high-risk locations, and, in some cases, its difficult to obtain at any price. This sentiment is having an impact on the real estate industry. Franz Rittsteuer. While rising interest rates are inevitably postponing new home purchases for some, supply constraints and pent up demand in certain markets means continued momentum. That solved the issue for many early movers, but prices and rents have been rising much faster in many of these Zoom towns, reducing their affordability. Each member firm is a separate legal entity. That means being upfront about the prospects for long-term value creation and the ways in which the company manages risks, including unexpected ones. ", - Real Property Tax Administrator, US Office of Tax & Revenue, "No one is better at walking through the information than you guys. He has successfully completed hundreds of real estate transactions and capital asset liquidations on four different continents, representing in excess of $6 billion in capitalization. So wheres the money going? Thomas is the recipient of Washington Business JournalsMinority Business Leader of the Year award and the National Executive Forums Beacon Award and was named one of Atlantas 500 Most Powerful Leaders byAtlanta Magazine. Christiane Conrads is Co-Leader of the German Real Estate practice atPwC Legal. Industry experts 2023 Emerging Trends in Real Estate, 2023 Global Digital Trust Insights Survey. Its important that companies respond to the call for more comprehensive and reliable reporting on ESG risks and opportunities to build trust with their investors and other stakeholders. While ESG risk factors of the companies have been considered by investors for many years, the recent spotlight on ESG has elevated the impact of ESG in investor decision making. PwC's experienced staff can help with the complex endeavor of structured finance transactions. Zandi frequently testifies before Congress and conducts regular briefings on the economy for corporate boards, trade associations, and policymakers at all levels. During his tenure, Congressman Shuster was one of the most respected Members of Congress while serving in the US House of Representatives. In the end, perhaps the most effective solution is the most obvious: The industry must construct more housing that is affordable to more people. Your contact person Reemt Lcht Senior Associate at PwC Germany Tel: +49 30 2636-4585 E-Mail As illustrated below, single-asset property sales volume decreased by a moderate 5.0%, from $26.8 billion in 2018 to $25.4 billion in 2019, while entity sales volume increased by 6%. With investor sentiment toward the sub-sector mixed, even those bullish on retail and its proven resilience, buoyed by the strong post-pandemic recovery seen in 2021 and beyond, inevitably have one eye on the economy. Leisure travelers continue to seek out experiential and immersive hospitality, with the goal of connecting with a given destination, and they are willing to pay for it. 2023 Global Digital Trust Insights Survey. As CEO of Capital Markets, Americas, for JLL,Mark Gibsonleads nearly 2,000 capital markets professionals across the United States, Canada, and Latin America. Global Consumer Insights Pulse Survey - June 2022, Ukraine: Tax, Legal and People considerations.