2024 Global Commercial Real Estate Outlook: Key Takeaways from Deloitte’s Report  

Key takeaways from a thought-provoking report on the state of the real estate industry in 2024.

Market trends
2024 Global Commercial Real Estate Outlook

Deloitte has published a thought-provoking report on the state of the real estate industry in 2024. Their findings are based on their annual Global Real Estate Outlook Survey, which reveals what are the top concerns and priorities for real estate owners and investors across the globe. Below we extract some of the key takeaways and how they relate to office and industrial asset classes.  

Key takeaways from the report

  1. Most real estate owners and investors want to cut costs, as their expectations for revenue have fallen. Top areas where cost savings will be made are in talent acquisition and retention, as well as office space. 
  1. Those surveyed have pointed out that the cost of capital and capital availability are the weakest factors in real estate right now. Half of those who responded think there will be less capital available through 2024, which is a higher proportion than those who made the predictions the previous year. 
  1. When it comes to sustainability, over a half of those surveyed said they are not ready to meet environmental, social and governance (ESG) regulations. They lack the necessary data, processes and internal controls to meet the compliance standards. 
  1. Majority of real estate owners and investors surveyed, plan to use outsourcing to increase efficiency. Their key goals are developing technological capabilities to streamline processes and to boost agility and resilience in their operations. 
  1. Over half of respondents admit that their firm’s technological infrastructure relies on old systems, but they are making efforts to modernize. This will be a key to improving efficiency and operational capabilities of these organizations. 

Source: Jefrey Smith, Renea Burns, Kathy Feucht, Tim Coy, 2024 commercial real estate outlook: Finding terra firms. Realigning the global real estate industry to help meet new foundational realities. Deloitte Insights, September, 20, 2023. https://www2.deloitte.com/us/en/insights/industry/financial-services/commercial-real-estate-outlook.html

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