2
Disrupting the Global Real Estate
Catalysts for Change in the Global Real Estate Market The recent confluence of events of the past few years - global pandemic, the acceleration of a technology centric world and rising energy costs - has collided with a generational shift in social norms. The upending of the status quo is driven by catalysts for change across the global real estate markets. Post-Pandemic Vacancy: The shift towards work-from-home since the pandemic could result in 330M square feet of vacant property in North America alone by 2030. 1 Commercial real estate needs to “earn the commute” and create services and environments people want to return to in the office. Occupancy Volatility: Organizations continue to move towards hybrid work. According to JLL, a vast majority of employers are requiring at least three days in the office. 2 This results in tremendous volatility in building occupancy, and creates challenges in optimizing heating, security, wellness and amenities requirements. New Policy and Regulations: Government policy, municipal regulations, IECC/NEC code changes, and the positive impacts of being LEED or WELL certified require rethinking into how we design or retrofit buildings for present and future occupiers. Rising costs of energy and materials: The cost of construction materials have jumped on average 19% since 2020, 3 and energy costs continue to rise and impact construction input costs as well as the cost of operating a building for owners and tenants. Generational shift and changing social norms: Millennials and Gen Z they will account for the largest segment of the global workforce by 2029. 4 They are digital natives with high expectations around workplace flexibility and sustainability. They demand, not just expect, that their employers deliver on their stated commitments to corporate social responsibility.
"Driven by the radical changes in social norms, we see consumer demands shift towards hybrid work, demand for health & wellness standards and greater service offerings in their workspaces.” John Braley Vice President, Business Development, Delos
6
Made with FlippingBook Ebook Creator