PWC – Emerging Trends in Real Estate (US & Canada), 2024

The real estate industry had initially hoped to wait out the risks of the pandemic and prepare for a period of growth. However, industry leaders now accept that there will be lasting changes, such as a decrease in office occupancy. This change will greatly impact not only office owners, managers, and brokers but also the downtown areas and other sectors that rely on a thriving office market. Additionally, there is an acknowledgment in the industry that interest rates will remain high for the foreseeable future. Although there is enthusiasm among investors to acquire new assets, the industry is still faced with challenging data. Despite available funds, transactions are decreasing due to disagreements between buyers and sellers on pricing due to limited sales that provide clarity on market value. On a positive note, respondents to a recent survey believe that the worst of inflation is over. This belief gives the Federal Reserve a reason to pause interest rate hikes. High-quality properties that align with the needs of investors and tenants still present opportunities despite economic challenges and difficulties in obtaining credit. Firms must adapt and develop growth strategies that can succeed in this period of prolonged high interest rates.