As the calendar turns to 2023, what’s ahead for the commercial real estate field? We talked to several NAIOP Distinguished Fellows and Research Foundation Governors to get their forecasts for the next 12 months.
Although many in the industry had assumed that the office market would stabilize in 2022 – and perhaps even begin to recover pandemic losses – this stabilization did not occur. Rather, wider economic changes; repeated interest rate increases by the Federal Reserve; the further establishment of work-from-home and remote office arrangements; and increasing numbers of office footprint reductions by businesses caused vacancy rates to continue to rise throughout the year, according to the latest CommercialEdge report.
While the primary focus of the national media during the 2022 election may have been on a potential “red wave” for control of the U.S. Senate and House of Representatives, there were over 6,200 state legislative races in 46 states. The outcome of these state races has significant impacts on core policy issues of importance for commercial real estate, such as taxes, regulations and economic development.
The JLL 2022 Life Sciences Research Outlook and Cluster report reveals the critical trends shaping the industry, and developers should take note of some key takeaways that could inform development strategy in 2023.
“We cannot possibly talk about the overall economy without first discussing inflation,” opened Michael Seiler, DBA, during a NAIOP webinar this week. Seiler and Hany Guirguis, Ph.D., author the NAIOP Office Space Demand Forecast.
With remote work in play, the office needs to provide employees with a value proposition that invites them in. In JLL’s 2022 Future of Work Survey, 77% of companies said that they are investing in quality office space to incentivize employees to work from the office. Our research forecasts a flight to quality over the next three years, calling it “a clarion call for employees to take action” – and companies are willing to pay extra for it.
The NAIOP-Drexel Summer Program participants had “all the feels” when they split into teams of three and competed, bracket-style, in what was, according to at least one student, “one of the most intense and powerful experiences I’ve ever had.”
As members of the commercial real estate industry, most of us have access to an extended network of professionals and companies, and we’re in a position to access tremendous resources and mobilize people when help is sorely needed.
The NAIOP-Drexel Summer Program is a partnership between NAIOP Greater Philadelphia and Drexel University. The program, which just celebrated its fifth summer, brings together 30 high school rising juniors and seniors of color for a 10-day immersive experience, exposing them to nearly every aspect of commercial real estate.
