2. Will AI go from hype to habit?
AI, and the future it represents, is taking the world by storm. This is causing a job boom for related skills. The real estate industry, including data centers, is expanding on the back of expectations for growth.
But as the initial excitement wears off, organizations struggle with how to fully leverage technology to achieve their future goals.
Investors, developers and occupiers agree that this will be one of the top three innovative technologies for real estate, especially the decarbonization of real estate, in the coming years.
“Using AI to easily process complex data, such as financial data, contract data, and the vast datasets generated by smart buildings, is becoming the norm,” said JLLT Chief Technology Officer said one Yao Moerin. “Companies across all sectors are exploring how AI can drive efficiency.”
However, she cautions that as the use of AI becomes more commonplace, businesses need to be mindful of the various AI regulations that are emerging around the world regarding data quality, intellectual property rights, privacy, and data security. To do.
3. Are there enough net-zero offices?
Demand for real estate that helps organizations achieve their net zero carbon (NZC) targets is increasing. But for now, there isn’t enough space to accommodate everyone, especially in the office sector.
The United States is expected to have a 57 million square foot shortfall in the supply of low-carbon workspace by 2030, but no city in the Asia-Pacific region has sufficient supply. In Europe, NZC’s low building demand outstrips supply by a factor of three.
“The gap between supply and demand is only widening,” says Guy Grainger, global head of sustainability services and ESG at JLL. “This is creating an opportunity for forward-thinking developers and investors to consider retrofitting existing office buildings with the hope of increasing rents in the short term and protecting value in the long term. ”
Grainger points out that the commercial case for sustainable building has never been stronger.
“Increasing costs from climate risk, increasing tenant demand, tightening regulations and financial constraints all point to investing in decarbonization as a prudent long-term strategy,” he says.
4. What’s next for real estate investing?
Commercial real estate investing is in the early stages of a significant reallocation of capital.
“It’s fair to say that diversification takes different forms depending on location,” says Sean Coghlan, global head of capital markets. ”
As for new strategies, Coghlan says implementation will be a hurdle given varying degrees of entry barriers, competition and crowding strategies. “This really reinforces the need for investors to be agile and ensure real-time market connectivity.”
Investors’ existing holdings will need to be evaluated as a clearer picture emerges, he added.