December 27, 2023

2024 Commercial Real Estate Predictions

As 2024 approaches, we look forward to what developments the new year will bring. Many have referred to  this upcoming year as the “Great Reset” in various contexts – from shifts in property value to the emergence of new technologies and higher demand for space. The Commercial Real Estate (CRE) industry continues to evolve, making adaptability a paramount element in maintaining a successful business strategy, especially in the new year.

Here are some of the top trends to look out for in 2024:

A new era of artificial intelligence (AI): We have witnessed a noticeable rise in the usage of AI across all industries. Many are seeing numerous practical uses that can be applied to CRE including property acquisition, property and leasing management, and market analytics. Experts predict that more industry leaders will apply AI to their business models for faster and more precise outcomes. 

More demands in the retail sector: The retail sector continues to stabilize itself post-pandemic, creating more demand for space within the industry. Despite the push for more e-commerce, experts foresee that retail tenants and customers will continue to remain loyal to brick-and-mortar shops.

Industrial locations built to fulfill e-commerce demands: E-commerce demands are resulting in a greater need for fulfillment centers and warehouses. To meet consumer needs, the industrial sector is set to have more construction in 2024 to keep pace with the consistent growth.

Mandates in environmental sustainability practices: Now more than ever, there is a greater push for sustainability practices within the real estate industry. This includes the implementation of solar panels, decarbonization, and climate resilience. These practices have been shown to improve financial returns for on-site renewable investment, tenant satisfaction, and increased long-term cost savings. 

Growing demand for multifamily housing: There is an increasing need for housing as the job market recovers. Due to the housing market experiencing higher mortgage rates and elevated pricing of for-sale homes, many are choosing to rent rather than buy. The new year of renting will likely attract more investors looking to fulfill the demand for multifamily housing

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