As predicted before companies will have to take some risks and embrace change to adapt for the future.
Delloitte last survey into the preferences of investors shows that a large proportion plans to increase their capital commitment.
The trend is expected to continue as the US leads the way with a 13% increase planned for the next 18 months. Following the 11% increase on the first half of this year, with a total transaction volume of $122 billion.
The nontraditional assets such as mixed-use properties and new business models with flexible leases and spaces will tend to attract an increased allocation of those investments. As they also see a significant impact from technology advancements on the sector.
As such the new capital commitment is unlikely to flow entirely into traditional CRE. Executives plan to diversify their portfolios through higher investments in newer and emerging business models.
They believe investments should be tied to the changing nature of work and tenant preferences while continuing to value traditional properties with longer-term, high-credit-worthy tenants.
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