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Real Estate Journal — Commercial Office Properties — November 22 - December 12, 2019 — 11C NAI CIR
M id A tlantic
As identified by The Counselors of Real Estate Robin Zellers, SIOR, FRICS, CRE, announces the top ten issues affecting real estate L EMOYNE, PA — Ro b i n Z e l l e r s , SIOR, FRICS, CRE , three issues of concern for The Counselors, as real estate in- vestors are requiring that cli- risks for real estate invest- ments. “Real estate investors can no longer rely on historic Real Estate are The Technol- ogy Effect, End-of-Cycle Eco- nomics, Political Division,
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. This thought leadership initiative is an invaluable service to those clients and to the real estate industry in general.” The Top Ten Issues Af- fecting Real Estate ™ are developed by The Counselors of Real Estate’s External Affairs Committee, with issues identified, debated, and voted on by the general membership.
p r e s i d e n t and broker of record at NA I C I R , shared the current and emerging is- sues expect- ed to have t h e m o s t
“Inadequate infrastructure creates a hard ceiling to economic development, and real estate values are tied to sustainable growth,” said Zellers.
Capital Market Risk, Popu- lation Migration, Volatility and Confidence, and Public and Private Indebtedness, respectively. “Many of these issues are in- terrelated and thus influence one another,” said Zellers. “Clients of Counselors seek
mate risk be assessed and fac- tored into return projections and day-to-day decisions. The report states weather and cli- mate-related risk has emerged as a new—and likely perma- nent—aspect of fiduciary duty and what it means to assess, disclose, and manage these
performance to predict future returns,” said Zellers. “With the frequency and intensity of events increasing, weather and climate-related events present physical and opera- tional risks for real property.” The remaining issues iden- tified by The Counselors of
Robin Zellers
significant impact on real estate in 2019 and 2020, as identified by The Counsel- ors of Real Estate . U.S. infrastructure and housing ranked as the leading con- cerns of the 1,100-member global real estate advisory organization. “Inadequate infrastructure creates a hard ceiling to economic development, and real estate values are tied to sustainable growth,” said Zellers, a Counselor of Real Estate. “The U.S. must invest in infrastructure to compete globally, but right now it is lagging other nations on infrastructure investment.” The report cites that roads, bridges, tunnels, railways, airports, the power grid, water systems, and levees are giving way with greater frequency. While the White House and Congressional leadership have discussed funding of up to $2 trillion, it remains unclear what ac- tion government leaders will take. Housing inAmerica ranked second on The Counselors’ list, with the gap widening between increasingly expen- sive supply and the decreas- ing level of ability to pay. The underlying causes can be found both on the supply side and the demand side of the housing equation. “Hous- ing affordability is threat- ening the stability of the middle class, which will hit other parts of the economy as well,” said Zellers. “Ad- ditionally, the new limits on the deductibility of state and local taxes are affecting both urban and suburban home- owners, while the liquidity of the housing market has been compromised by the difficulty of the Baby Boomer generation in finding buyers for the homes that represent a major portion of their net worth.” Weather and climate-relat- ed risks rounded out the top
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