insight
5 big questions real estate will be asking in 2020 From flexible space to greater sustainability, this new year has a lot in store Thanks to JLL - https://www.jll.co.za/en/trends-and-insights/investor/5-big-questions-real-estate-will-be-asking-in-2020
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The Jewel shopping mall near Singapore’s airport.
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s 2020 kicks off, the real estate industry has more on its mind than the U.S. election or Brexit. In these transformational times, workplaces are grappling with new technology and focusing on wellness. Retail strategies are shifting toward wowfactor experiences. Investors are branching out into new countries and sectors. Amid the ongoing politics, trade tensions and tech-driven disruption, there are lots of questions about what’s in store. Here are five big ones that JLL experts think will be front of mind for real estate in 2020.
working – remains strong, given its ability to help drive collaboration and deliver costs savings. JLL believes there will be continued global growth in flexible office space over the long term. But investors and occupiers will be looking for clues about which business models, operating models and technologies will drive the burgeoning sector forward. Read about how tech is fuelling the rise of flexible space and why investors are racing to rethink their approach.
1. Will flexible space continue its meteoric rise?
Commercial real estate markets have been booming for nearly a decade, with investors pouring capital into the sector in a hunt for steady returns amid record-low interest rates. For the most part, the global economy expanded during that time. But there are signs the winds are shifting. “Although there is no such thing as an economic cycle which turns downward simply due to old age, it is generally recognized that we are in the longest period of economic expansion on record and that some correction is likely within the next 24 months,” says Christian Beaudoin, U.S. Research Director at JLL. “Across many industries, employers are struggling to find talent to fuel their expansion, and constraints on employment growth and productivity improvement may be limiting factors.” The trade tensions between the U.S. and China will be top of mind, too. “Although a temporary truce in the USChina trade war is likely, the two world powers
The rise of flexible workspace has been one of the most significant developments in commercial real estate, moving from niche to mainstream at an incredibly rapid pace. Demand for flexible space – a broad term for any type of real estate that enables agile
SOUTH AFRICAN PROPERTY REVIEW – FEBRUARY/MARCH 2020
2. How could a slowing global economy impact markets?
