Predicting the future may not be as difficult as everyone thinks. That may be an assessment after considering some of the trends predicted for 2024. Many of them appear to be offshoots of movements that appear to have been built in 2023 and earlier.
It would be impossible to ink all the proposed trends in such a short format. So all the trending suggestions that arrived in his inbox were put into a giant hopper, and from that vast selection, he extracted the following six.
Housing resistant to natural disasters
Four of the five largest wildfires in California history have occurred since 2020. The National Oceanic and Atmospheric Administration (NOAA) has correctly identified climate change as the primary cause of fire weather in the western United States. This risk leaves many homes in fire-prone areas uninsured.
Among the companies responding to this crisis is SHAWOOD, which has invented a unique home building system, a home frame that allows for stronger homes that can withstand environmental threats while offering design flexibility. developed the system. His SHAWOOD proprietary Bellburn tiles, installed throughout the home, are strong enough to withstand earthquakes up to 1,500 degrees Fahrenheit and a 9.0 on the Richter scale.
rosy retail
A few years ago, many envisioned the imminent demise of the brick-and-mortar retail sector. However, the retail industry has made a remarkable comeback in the past 18 months, reports Urban Land Institute (ULI) and his PwC US. Emerging trends in real estate for 2024. The positive outlook should continue to brighten retailers’ days through 2024.
“The industry is beginning to realize that this country will continue to shop for most goods and many services in shopping centers indefinitely,” the report’s authors wrote.
compound interest
There seems to be a growing interest in buying up one to three properties in a neighborhood to create a huge estate and establish a private estate. This trend is particularly evident in South Florida, where Jeff Bezos, Eric Schmidt, and Philippe Ragon are among the hottest buyers in 2023 as they look to acquire adjacent properties.
High-priced complex properties that have come on the market in the past few months include 115 Ocean and 105 Ocean in Miami Beach, listed for $68 million by Douglas Elliman’s Dina Goldenteyer; There are three Vero Beach properties that Mr. Goldenteyer has listed for $27 million. Danette Dieffenbach of ONE Sotheby’s International Realty.
sustainable reuse
The calls for increased adaptive reuse are sure to become even louder in 2024. There are high hopes for this move and too many benefits for any other eventuality.
The sustainability argument is particularly compelling given the opportunities to reduce carbon emissions by diverting construction waste from landfills and repurposing old buildings for new uses. Deloitte reports that adaptive reuse projects cost 16% less and are completed 18% faster than new construction developments. Several projects by Denver-based Urban Villages demonstrate that appeal. Seattle’s RailSpur is a carbon-positive microdistrict that converts three old buildings into offices, retail, residences, and soon a boutique hotel.
In Denver, a historically significant former sugar mill built in 1906 has been renovated to create Sugar Block, a new grouping of workspace, retail, and housing.
office demand
Elizabeth Hart, president of North American leasing at commercial real estate advisor Newmark, predicts that the office use industry as a whole could see an increase in demand in 2024 due to increased employment. Hart says that since September 2022, new business formation in all regions has increased by an impressive 11.5%. Employer and employee expectations for in-office work remain stable, adding momentum to the positive outlook for the office sector.
lending innovation
In the multifamily industry, both construction and permanent loans were negatively impacted by the 2023 failure of Silicon Valley Bank and other institutions. Some individuals divert their savings from local banks, preferring larger financial institutions that are perceived as safer.
This seriously hinders multifamily financing.
Michael Lee, principal and partner at HKS Real Estate Advisors in New York, says deals that might have previously attracted a dozen offers now may receive one or two offers. It is said that there is. “Times of change often breed innovation, and the challenges faced by local banks may prompt them to explore new avenues for growth and stability,” Lee added.
“As the industry adapts to the evolving financial environment, there is also an opportunity to refocus on sound business practices, strategic partnerships and creative financing solutions. [contributing to] We aim for continuous development of the real estate market. ”
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