|Commercial Real Estate Outlook for 2018
As 2017 comes to a close in a few weeks, it’s time to start looking ahead to what the New Year will bring. Every year is different and this is especially true for the real estate industry. So how are you to optimize opportunities in an ever-changing environment for success? Simple, you try to find the outlooks and then base your 2018 strategy on the predictions and then adapt accordingly. Here are four outlooks for the real estate niche for 2018 that will help you better strategize for the upcoming year:
1. Unlock the value of REITs to accelerate your business
Right now, traditional REITs are trading below their net asset values, which makes us wonder what’s bothering markets and investors about traditional REIT stocks? One factor can be the fact that the market is discounting traditional REIT stock prices for broader trends like higher interest rates, stricter lending standards and perceived heated property valuations. Another factor is that REIT stocks are impacted by the influence of market trends and finally, the increase in investor activism in the industry is delaying decisions in order to create higher shareholder value in the long run.
2. Focus on RE fintech startups
Technology is here to stay and advancements have lowered entry barriers for tech startups, so expect more focus on RE finetech startups within the industry. Re fintechs are enabling financing and investments in real estate, while operations-related startups focus on the core real estate business like property search, smart building technologies and more. Traditional RE companies can benefit from engaging with these startups, such as accessing capital by using the innovative funding and investing platforms that these fintechs offer and they can partner with them to meet their financial and investment needs. Right now the RE space is hot and so taking advantage of what fintech’s can offer, you’ll be able to find success in 2018.
3. Embrace robotics and cognitive automation (R&CA)
Currently, automation is huge, with it transforming the industry and changing the way we work. RE companies have been slow to adopt new technology, but by embracing robotics and cognitive automation they’ll be able to lessen human error. R&CA can be a game changer for commercial real estate since it helps RE companies reduce errors and increase operational efficiency by replicating human actions at a lower price.
4. Advance people by reimaging talent and culture
Real estate and construction (RE&C) companies need to adapt to today’s digital world and they must also embrace a new workforce; one that’s increasingly diverse by gender, generation and other demographics. They must reimagine talent and culture to find skill workers who will stay at their company for longer periods of time. These companies need to rethink their approach to talent, employee experience and more.