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Last week I wrote about the advancements of technology and consumer behavior to keep your thinking along the lines of long-term strategic issues in today’s commercial real estate environments. Now it’s time to talk about preparing for the future.

If your organization hasn’t planned for Property management and managing emerging trends in 2016, you are already quite late to the game. Fortunately, the next 24 months look outstanding for real estate. PWC released its 2016 report on emerging trends in real estate, and according the the findings, expect to see investors, developers, lenders, users, and service firms relying upon intense and sophisticated coordination of both their offensive and defensive game plans. The highly competitive environment will require disciplined attention to strategy and to execution as a critical component to success.

Just as we learn our lessons from the past, we realize the The Value Of A Good Property Manager how for commercial real estate and management, today’s newer essentials shape those of tomorrow.

Here we will cover real estate’s emerging trends for the year ahead. Some you may begin to plan for and some you may immediately implement. Everything in the industry has become ever more dynamic as it adapts to a networked world.

“Everything is connected to everything else, so market participants cannot afford to ignore developments well beyond the Assets management markets themselves. The major forces of globalization, technology, urbanization, and demography are constantly interacting with each other,” according to PWC’s report.

“Keep It Simple, Stupid”

It’s inevitable that the “Keep It Simple, Stupid” rule has its strengths, but PWC refers to this only applying if it also recognizes that a complex world punishes any overly rigid approach to change in the markets. Adaptation remains the key to survival and competitive advantage in this industry.

18-Hour Cities

According to PWC, although 18-hour cities and all higher-growth markets have historically been more volatile than their gateway counterparts, there are factors that could diminish the volatility going forward. “During the current economic expansion, the capital markets have demonstrated a much greater degree of restraint when it comes to funding new development. So the 18-hour cities face lower-than-average supply pressure, compared with history,” the report states.

The Suburbs…

Suburbia is far from dead. As prices increased in core gateway markets, taking a fresh look at suburban opportunities is gaining popularity. “The attractive suburbs will be more like the airline hub and-spoke model. These ‘diet urban’ locations will offer urban and suburban benefits.” The critical descriptors seem to be suburbs that are close-in, transit-oriented, and mixed-use,” PWC notes.

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