Industry insights, market outlook reports and commercial real estate
news, and trends from the Coldwell
Banker Commercial brand.
In part 1 of CBC’s Consumer Behavior Shifts & How it Impacts Real Estate blog series, we discussed the ways in which consumer behavior has changed over the past two years and how those changes impact every facet of retail strategy. In part two, we will dive into the long-term impact of COVID on consumer behaviors and patterns, how these patterns are impacting both the restaurant and retail industry, and the effects of online shopping.
Have you ever thought “How can I make sure I stay at the top of my game?”
It comes as no surprise that consumer behavior changed substantially over the past two years. For example, the rise of omnichannel, shifts towards hybrid work, the growth of leisure activities, and increased economic uncertainty all contributed to rapid and unpredictable changes in when, how, and where consumers shop. These changes impact every facet of retail strategy, from chain-level considerations like when to open stores, shelf-level arrangements on where to place products, to product-specific decisions for pricing, packaging, and marketing goods.
Early speculators, investors from all over the world, real estate agents, and celebrities are buying land that doesn’t physically exist in the real world. They are investing in metaverse real estate, a concept that is hard to wrap our minds around.
On June 2, 2022, Coldwell Banker Commercial’s Senior Vice President and Managing Director, Dan Spiegel, hosted Lawrence Yun, chief economist for the National Association of REALTORS® (NAR) for an insightful and fascinating discussion where viewers learned how the American economy is performing at the midyear mark, important factors to consider and how it is affecting commercial real estate across all asset classes.
Residential properties are responsible for roughly 17-21% of energy-related carbon emissions globally, reports the British Broadcasting Corporation (BBC). That figure covers everything from the electricity we use to power televisions and other electronic devices, as well as the fuel we use to heat water and cook. Take into account the carbon emissions released in the manufacture of concrete, metal and other building materials along with the construction process itself, and it’s clear that housing has a considerable role to play if the world is to meet its ambition to reduce global carbon emissions to net zero by 2050.
CBC often discusses and focuses on the importance of sustainability in real estate. Climate change is a growing issue, with the real estate industry working to find solutions to slow the impact. It is worth noting, for context, buildings are the largest contributor to global warming. Across commercial and non-commercial buildings, the real estate sector accounts for 38% of all greenhouse gas emissions. According to J.P. Morgan’s report, “Buildings reimagined: Why carbon neutral property is the future of real estate,” a large proportion of today’s commercial buildings date back to the 1970s, when environmental issues were less of a concern. And because most of these properties will still be standing in 2050 – the year many governments have pledged to reach zero- carbon targets – they will need to be decarbonized by reducing the amount of carbon compounds they omit into the atmosphere. In part one of the Climate Change Mitigation in Real Estate series, we will take a closer look into how owners and managers can work to improve a building’s carbon footprint.
The U.S. industrial market remains a darling among the major commercial real estate asset classes. A report by CommercialEdge showed that the performance of the sector and its rise in prominence in 2021 was largely driven by e-commerce. Researchers say despite a deceleration of e-commerce growth in Q3 2021, online sales are expected to continue fueling industrial demand into the future.
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.
A new report by NAR shows that retail markets across the country are showing promise. In fact, strong year-over-year gains in asking rents were recorded in Q3 2021. That primarily occurred in Midwestern, Southwestern and Southern metros such as Akron, OH; Las Vegas, NV; Tulsa, OK; Salt Lake City, UT; Fort Lauderdale, FL; Jacksonville, FL; Atlanta, GA; Nashville, TN; Tampa, FL; and Cincinnati, OH.