Published on : Jun 12, 2014
Hugh F. Kelly, a clinical professor of real estate at New York University’s Schack Institute and 2014 chair of the CRE, said the annual Top Ten Issues Affecting Real Estate list reflects growing economic and political turmoil, along with changing demographics and the lifestyle choices of an emerging generation. The rising America’s growing energy independence – the Chicago-based Counselors of Real Estate in the United States strengthens the job market by massive changes in the delivery of healthcare.
There are many other issues related to association’s top 10 lists this year, and these include jobs, millennial, healthcare, globalization, water supply, the capital markets, housing, manufacturing and agriculture.
Hugh F. Kelly of the CRE said energy implications for commercial real estate are double in growth and the country also witnesses a boom in employment in several markets, ranging from Houston to the Bakken oil fields in North Dakota. This can certainly lead to a ripple effect in housing and services sectors.
In contrast, CRE also stated that some uncertainty witnessed in the energy sector is fueled by dueling reports prepared by environmentalists and the oil & chemical companies that provide investors with varying opportunities. The low natural gas prices have brought about plenty of improvements in the manufacturing sectors and could significantly help in the expansion of rail, shipbuilding and related industries in Europe and Asia.
The jobs in certain industries would have a positive impact on the multifamily and residential sects, conversely the hiring for office and the quality of jobs increase because employers’ insist on scaling back their employee space requirements.
Furthermore, owing to consumer behavior and online technological changes, there have been job reductions in the retail and branch banking, said CRE. This would negatively affect the commercial real estate sector and jobs in the service sector may also absorb those that are displaced.