Top 8 Trends Impacting Commercial Real Estate Firms

All types of U.S. industries have felt the impact from the unstable economy, but the commercial real estate (CRE) market has seen more challenges than others.

It has been a very slow recovery for CRE firms, and even with all of the positive shifts in fundamentals, capital availability, pricing and number of transactions, the industry is still struggling.

Here are the top 8 trends that are currently affecting the success of CRE firms

  • Economic uncertainty – The downturn has impacted commercial vacancy rates and has affected property valuations.
  • Pricing instability – Property valuations are a problem for existing owners, as well as buyers and sellers.
  • Environmental “Green” revolution – Pressures to increase sustainable and energy efficient buildings to minimize the carbon footprint.
  • Regulatory risks – Regulations of developing markets is constantly changing and with those shifts come different exposures.
  • Energy costs – High oil/natural gas prices have as new supply will be unable to meet renewed demand.
  • Flexible underwriting requirements – More money is flowing into new properties and refinancing old properties.
  • Weather-related catastrophes – Forcing companies to respond by delaying capital projects and planned expansions.
  • Driving force of the Internet – The online industry is revolutionizing office space, creating the need for more creative/collaborate workspaces.

CRE stakeholders can navigate these challenging times and prepare for long-term growth by embracing advanced technologies, analytics, cloud computing, social media, and enterprise mobility.

In the event a lawsuit may arise, CRE firms should protect themselves and avoid paying legal defense costs or damages by purchasing a professional liability insurance policy.

Our specialists have over 20 years of experience with professional liability coverage. Contact us today at 201-847-9175 or visit www.axisins.com to learn more about a custom insurance solution for your firm.

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