Real estate expansion lives on – 2017 Real Estate Industry Outlook Survey

2017 Real Estate Industry Outlook Survey

This survey explores the micro and macro factors contributing to the sustained optimism and continued growth in real estate, despite the uncertainties

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2017 Real Estate Expansion Lives On

Can real estate expansion really continue? Industry leaders seem to think so.

Based on a KPMG survey of senior US commercial real estate executives, this report explores the micro and macro factors contributing to the sustained optimism in commercial real estate, and outlines what actions investors, owners, managers and service providers will take in the coming year to get ahead of anticipated challenges, seize near-term opportunities and ‘sustain the boom’.

Key Findings:

1. Conditions continue to be favourable in US real estate markets.

  • Executives say the US economy will be the same or better in 2017 versus 2016.
  • Companies expect to be able to find funding for real estate deals and have strong access to equity capital.
  • Real estate fundamentals are expected to improve.

2. Uncertainties in the real estate market have not dampened real estate leaders’ bullishness, but they do present some risks that must be understood and managed.

  • How President Donald Trump’s policies – from tax reform to immigration – will impact the sector remains to be seen.
  • Changes to the Affordable Care Act and federal tax laws may impact real estate companies’ operations and bottom line.
  • Rising interest rates may impede first-time home buying. 
  • Data breaches are a clear and present danger, but the real estate industry has some catching up to do on cybersecurity.

3. There will likely be substantive activity in the sector in 2017 as executives continue to focus on growth, efficiency and customer satisfaction.

  • Organisations are prepared to seek out the best deals in what is becoming a tougher market as far as supply. Respondents expect the best opportunities to be concentrated in the hottest locales and property types. They also plan to target prime asset classes.
  • Companies plan to embrace significant change and transformation, including investment in organic growth such as new product development, pricing strategies, geographic expansion, and open-ended and debt funds.
  • Companies plan to focus on boosting bottom-line efficiency, such as by implementing back-office and property management technologies and making process improvements.

All signs point to the US real estate market sustaining its momentum throughout 2017. How can US real estate executives manage economic, political and business uncertainties to seize the opportunities ahead?

Read the report for top tips regarding capitalising on strong market conditions in what is shaping up to be a good year.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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