Robin Zellers, CRE, Announces the Top Ten Issues Affecting Real Estate
Remote Work & Mobility Leads Counselors’ 2022-23 List
Harrisburg, PA (August 18, 2022) —Robin Zellers, SIOR, FRICS, CRE, a member of The Counselors of Real Estate, a global organization of commercial property advisors, announced the group’s annual Top Ten Issues Affecting Real Estate. As the real estate industry faces unpredictability, the effect of inflation and interest rates is the leading concern of the 1,000-member organization in its 2022-2023 report, with geopolitical uncertainty and the impact of hybrid work rounding out the top three issues.
“The Counselors of Real Estate® recognizes crucial themes so we can pinpoint trends and their subsequent bearing on real estate,” said Zellers, President of NAI CIR. “As we’ve experienced in Central PA, this past year has been both vibrant and a bit turbulent for the industry. Now we’re seeing the longer-term effects of the pandemic on real estate, and inflation levels and interest rates are front and center in the marketplace.”
The 2022-2023 Top Ten Issues Affecting Real Estate are listed below with quotable insights from Zellers on each issue.
1. Inflation and Interest Rates – “An economic slowdown is already underway and its’ effects on subsequent demand is the greatest risk to commercial real estate.”
2. Geopolitical Risk – “Geopolitical risk provides headwinds to the economy. The longer it takes to moderate, the greater the uncertainty for real estate.”
3. Hybrid Work – “Decentralization pressures and potential property devaluations are sure to keep the entire sector on guard during the evolution of the next few years.”
4. Supply Chain Disruption – “Impacting nearly every aspect of real estate, delays will continue to raise costs and cause realignment in supply chain strategies and warehousing.”
5. Energy – “The consequences building, and business owners are facing – and need to consider in business continuity – include increased investment in on-site energy resilience.”
6. Labor Shortage Strain – “The implications for property markets are mostly indirect but potentially significant. Occupiers lease less space as they can secure a workforce to run their businesses.”
7. The Great Housing Imbalance – “Markets that have not been able to provide lower-cost housing have experienced out-migration and risk stressing infrastructure capacity as renters are driven further out.”
8. Regulatory Uncertainty – “The emerging conflict between state preemptive and local control over land use, and the litigation that has emerged from these conflicts, will create regulatory uncertainty for some time to come.”
9. Cybersecurity Interruptions – “This is not a smart building’ problem, but rather a 40-year build-up, as our main systems require computers, networks, and Internet connections.”
10. ESG Requirements Forcing Change – “These requirements are also instigating much innovation in the design, development and construction of new buildings, as well as renovation of existing properties with long lifespans ahead of them.”
The full 2022-2023 Top Ten Issues Affecting Real Estate report can be viewed at https://cre.org/wp-content/uploads/2022/08/2022-23-Top-Ten-Issues-Report.pdf.
About The Counselors of Real EstateÒ
The Counselors of Real EstateÒ is an international consortium of commercial property professionals from leading real estate, financial, law, valuation, and accounting and business advisory firms, as well as real property experts in academia and government. Membership is selective and extended by invitation, although commercial real estate and allied practitioners with 10 years of proven experience may apply. Clients of Counselors seek unbiased, objective advice on the critical factors that will impact all property sectors today, as well as those issues that may affect their decisions over the next ten years.
Among assignments large and small, Counselors have resolved the dispute between the developer of the World Trade Center and its insurers post September 11, led the privatization of U.S. Army Housing, developed a multi-billion-dollar, 10-year master plan for Philadelphia Public Schools, created and endowed the MIT Center for Real Estate, and valued both the Grand Canyon and Yale University. Counselors reside in 20 countries and U. S. territories, with only 1,000 professionals holding the CREÒ credential worldwide.
About NAI CIR
NAI CIR, based in Lemoyne, is Central Pennsylvania’s oldest and largest exclusively commercial industrial real estate full-service brokerage firm. Founded in 1970, the firm is consistently ranked as the top producing commercial industrial sales and leasing firm by the Central Pennsylvania Business Journal and by Real Capital Analytics. The firm has been honored as a Philadelphia Region CoStar Power Broker for 23 consecutive years.
NAI CIR is the Central Pennsylvania representative of NAI Global, an international organization of real estate professionals with connections literally all across the world. Our transaction and management professionals are among the most experienced and successful in the business, and our platform ensures that our expertise directly benefits our clients.
About NAI Global
NAI Global is a leading global commercial real estate brokerage firm. NAI Global offices are leaders in their local markets and work in unison to provide clients with exceptional solutions to their commercial real estate needs. NAI Global has more than 400 offices strategically located throughout North America, Latin America, Europe, Africa and Asia Pacific, with over 7,000 local market professionals, managing in excess of over 425 million square feet of property. Annually, NAI Global completes in excess of $20 billion in commercial real estate transactions throughout the world.
NAI Global provides a complete range of corporate and institutional real estate services, including brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain and logistics consulting and related advisory services.
To learn more, visit www.naicir.com.