Deloitte – Commercial Real Estate Outlook, 2024

According to Deloitte's Commercial Real Estate Outlook for 2024, expense mitigation is a top priority for most respondents, as revenue expectations have dropped to their lowest level since 2018. The main areas for expense reduction are talent and office space. Furthermore, respondents believe that the cost of capital and capital availability are the weakest aspects of real estate fundamentals. Roughly half of the respondents expect these factors to worsen over the next few years. Another finding is that many real estate firms are not prepared to meet environmental, social, and governance (ESG) regulations. Almost 60% of surveyed firms lack the necessary data, processes, and internal controls to comply with these standards. Deloitte suggests that real estate firms should address their accumulated technical debt by enhancing their technology capabilities. Despite 61% of respondents admitting that their firms still rely on legacy systems, nearly half are taking steps to modernize. In order to drive efficiency, most respondents plan to use outsourcing. Their primary goals include gaining technological capabilities to streamline processes and adding agility and resilience to their operations.