Industry insights, market outlook reports and commercial real estate
news, and trends from the Coldwell Banker Commercial brand.
Despite global market volatility and a variety of challenges in the industry, construction activity still continues to increase across multiple markets. Some of these challenges include universal inflationary trends founded on construction labor shortages, demand exceeding supply, and disruption in supply chains hitting costs and programs. According to Turner & Townsend’s 2022 International Construction Market Survey, when it comes to increasing construction costs—including labor and materials costs—the United States dominates rankings of the most expensive places in the world for real estate development.
The construction sector slowed down as the year progressed, according to the December 2021 Dodge Construction Network report. The loss on the commercial side pulled the Dodge Momentum Index lower, despite gains in institutional planning. Dodge’s monthly momentum fell 4% in November to 171.1 from a reading of 178.1 in October for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. In November, commercial planning fell 8% while institutional planning moved 5% higher.
Construction of nonresidential building projects accelerated in October in the United States, according to a new report by Dodge Construction Network. The Dodge Momentum Index increased 10% in October to 181.2 from the revised September reading of 164.6.
The significant spike in build-for-rent demand has made the single-family residential rental product the fastest-growing trend in homebuilding today. According to the Pew Research Center, more U.S. households are occupied by renters than at any point since the 1960’s. In fact, a new survey from Apartment List found that 18% of millennials expect to rent forever, up from 11-12% in the prior two years. As explained by the Atlantic Business Journal, one of the main reasons people rent, especially millennials and Generation Z, is because they can’t afford to purchase a home in their desired area. Additionally, most major cities lack affordable multiunit housing solutions due to zoning and density restrictions in popular areas. In this article, we discuss the build-for-rent model, the reasons why BFR has emerged as one of the most popular trends in real estate, and how the COVID-19 pandemic has impacted the BFR space.
In part 1 of our climate change series, we explored how the real estate and construction sectors are making efforts to reduce their negative impact on the environment, and how climate change impacts investor’s business decisions. In part two, we will discuss the short- and long-term implications of climate change on real estate, including adoption of corporate Environmental, Social & Governmental (ESG) initiatives, as well as what markets are the most vulnerable.
Climate change is slowly but surely making its devastating impact all over the world. In two parts, we will explore how the real estate and construction sectors are making efforts to reduce their negative impact on the environment, how climate change impacts investor’s business decisions, the short- and long-term implications of climate change on the real estate sector, including adoption of corporate Environmental, Social & Governmental (ESG) initiatives, as well as what markets are the most vulnerable.
Land sales often reveal an interesting aspect of the U.S. economy. Activity surrounding land transactions can portend where the real estate industry may be headed. In the case of the most recent economic recession that started in February 2020, land sales highlight the shift away from commercial office and retail development, while showcasing a renewed interest in residential development.
The age-old adage “time is money” absolutely applies to commercial development and construction. That is why John Wanamaker, CCIM, broker and owner of Coldwell Banker Commercial AI Group in central Florida is a strong proponent of the “Design Build” concept.
If you spend any time at all in the commercial real estate world, you’ve probably heard and seen terms like green, clean energy and sustainability all over the place. But are you really sure about what these terms mean, or how they’re applied?
The United Nations Conference on Trade and Development (UNCTAD) is behind an initiative to promote sustainable development in every member state of the U.N. Its stated goals also include initiatives to significantly increase sustainable industrialization in lesser developed countries (LDCs) by raising their share of GDP and industry share over the next 12 years.