Deloitte's 2023 Commercial Real Estate Outlook Report Provides Actionable Insights

“The global CRE industry faces uncertainty. Leaders can navigate the future of real estate in 2023 and beyond by focusing on strategic execution, talent, and innovation.” So begins the 2023 Commercial Real Estate Outlook from the Deloitte Center for Financial Services.

The global survey of 450 CFOs of major CRE owners and investment companies is available as a free download. Survey questions included forecasting 2023 revenues; their biggest challenges; how prepared their organizations are to respond to different global concerns; how changes in real estate fundamentals will affect them; the year’s most attractive risk-adjusted investment opportunities; ESG compliance readiness; potential tax changes of most concern; actions they’re most likely to take to attract and retain talent; and their tech spending plans. Here are the key highlights from the report: Most global real estate CFOs are much more cautious with their 2023 operating plans.

Owners and investors are targeting offices, digital economy, and logistics properties. ESG-related actions are still top of mind, but most firms need guidance on how to implement changes and monitor progress. The evolving global regulatory environment is expected to bring changes to tax structures and modernization to the forefront.

Regional approaches are emerging to attract and retain talent. Real estate firms of all sizes are seeking outsourcing opportunities to optimize operational capacities. While technology budgets tend to be more reserved, those who plan to increase spend have opportunities to improve efficiency and explore new revenue opportunities in fundraising and digital assets.