By Deloitte Center for Financial Services
In Deloitte's endeavor to help CRE companies understand the new rules of the road, their 2019 Commercial Real Estate Outlook dives deeper into the preferences of CRE investors. Their survey of 500 global investors, provides insights on factors that are influencing CRE investment decisions, and are revealed the following key themes:
1. A large proportion of respondents plan to increase their capital commitment to CRE, with the United States, Germany, and Canada leading the way.
2. Nontraditional assets such as mixed-use properties and new business models such as properties with flexible leases and spaces are expected to attract an increased allocation of investment dollars.
3. Many surveyed investors expect to prioritize their investments in existing and potential investee companies that respond rapidly to changes in business models and adopt a variety of technologies to make buildings future ready.
4. Survey respondents see a significant impact from technology advancements on legacy properties in fewer than three years.
What are the companies with new business models doing differently? These companies, which can be considered change agents, are typically retaining the core ethos of the real estate business—the importance of location—while changing the mind-set about how the physical space is consumed. Powered by technology, their value proposition lies in augmenting the user experience.