Impact Of Shifting
Population Demographics
TRENDS TO WATCH IN 2023
There’s increasingly short supply for residential real estate, and elevated construction costs are making housing even less affordable. In response, governments are introducing national and local legislation to incentivize residential development.
Global Housing Shortage
Tax, Financial
Reporting &
Transfer Pricing
Valuation,
Modeling &
Interest Calculation
Contractor
Remediation
Strategy & Communication
Risk Assessment
The transition from LIBOR brings along with it a degree of risk potential which can include elements of contractual, liquidity and/or basis risk. It is therefore important for organizations that utilize or have a connection to LIBOR to conduct a LIBOR impact assessment and identify potential risk areas, taking into consideration overall exposure, compliance components and ongoing regulatory developments. This includes taking an inventory of LIBOR products and identifying the affected instruments. Given the possible extent of risk exposure, it is important to have a mitigation plan in place that considers clients, contracts and balance sheet items, scenario analyses and systems/technology.
Risk Assessment
Global Housing Shortage
Debt-Driven Acquisitions
Flight to Quality Properties
Industrial Demand
from Onshoring
“Just-In-Case” Supply
Chain Models
Developers can conduct a feasibility analysis to assess where new legislation is incentivizing domestic development. This helps determine whether developers’ investment strategies align and whether the incentives outweigh potential qualification costs – for example, whether clean energy investments align with Inflation Reduction Act
tax credits.
Property owners should monitor consumer trends and adapt their properties to cater to shifting demographics. Providing access to relevant amenities will create a competitive edge, positioning property owners to capture more market opportunity in the coming year.
Population shifts are redrawing the rules of real estate development. The lure of job opportunities in cities (primary and secondary) could cause a staggering increase in urban development. Meanwhile, aging populations may have outsized impacts on healthcare real estate, from assisted living to ambulatory surgical centers (ASCs).
Impact of Shifting Population Demographics
$58 billion
The U.S. market for ASCs by 2028
The U.S. office-based lab market by 2028
$14.5 billion
Whether looking to make acquisitions or attract potential buyers, businesses should prepare for increased M&A activity. By establishing transaction criteria, expectations and limitations, these businesses can take advantage of opportunities with fewer obstacles in their way.
As debt matures in 2023, some lenders are advising that borrowers sell assets to avoid foreclosure. We expect more opportunistic acquisitions as buyers step in to offer a lifeline to borrowers running low on capital.
Debt-Driven Acquisitions
The U.S. more than the next biggest industry lab market by 2028
4x
of global real estate debt is distressed,
$175 billion
Source: The 2022 Ambulatory Surgical Center Market
Report: Research and Markets
Source: Bloomberg
Owners of Class B and C properties should upgrade their properties and processes. Providing greater access to amenities more commonly associated with Class A properties could mitigate downside risk.
The pandemic changed the way we work, leaving many offices vacant and encouraging companies to downsize and migrate toward Class A properties.
Flight to Quality Properties
Developers and landlords of manufacturing facilities should focus on differentiators that support manufacturing technology. Coordination with
local governments can help developers capitalize on benefits in addition to federal incentives.
Political conflict, ongoing supply chain disruptions and shifting regulatory conditions are prompting many manufacturers across the globe to “onshore” or “nearshore” by relocating facilities closer to home. This will boost interest in industrial real estate for the year ahead.
Industrial Demand from Onshoring
Industrial property owners should market their facilities according to tenants’ warehouse space needs. End-to-end supply chain visibility, for example, requires investment in logistics technology. Developers and investors can benefit from directing resources to properties that are already equipped to facilitate process automation in warehouses.
Worldwide prevalence of e-commerce has forced companies to circumvent supply chain disruption by switching from the “just-in-time" model of logistics to “just-in-case," meaning companies need more warehouse space located closer to consumers.
“Just-in-case” Supply
Chain Models
AN EFFECTIVE LIBOR
TRANSITION PLAN
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Developers can
conduct a feasibility
analysis to assess where new legislation is incentivizing domestic development. This helps determine whether developers’ investment strategies align and whether the incentives outweigh potential qualification costs – for example, whether clean energy investments align with Inflation Reduction Act tax credits.
There’s increasingly short supply for residential real estate, and elevated construction costs are making housing even less affordable. In response, governments are introducing national and local legislation to incentivize residential development.
Global Housing Shortage
Developers can
conduct a feasibility
analysis to assess where new legislation is incentivizing domestic development. This helps determine whether developers’ investment strategies align and whether the incentives outweigh potential qualification costs – for example, whether clean energy investments align with Inflation Reduction Act tax credits.
There’s increasingly short supply for residential real estate, and elevated construction costs are making housing even less affordable. In response, governments are introducing national and local legislation to incentivize residential development.
Global Housing Shortage
Developers can
conduct a feasibility
analysis to assess where new legislation is incentivizing domestic development. This helps determine whether developers’ investment strategies align and whether the incentives outweigh potential qualification costs – for example, whether clean energy investments align with Inflation Reduction Act tax credits.
There’s increasingly short supply for residential real estate, and elevated construction costs are making housing even less affordable. In response, governments are introducing national and local legislation to incentivize residential development.
Global Housing Shortage
Developers can
conduct a feasibility
analysis to assess where new legislation is incentivizing domestic development. This helps determine whether developers’ investment strategies align and whether the incentives outweigh potential qualification costs – for example, whether clean energy investments align with Inflation Reduction Act tax credits.
There’s increasingly short supply for residential real estate, and elevated construction costs are making housing even less affordable. In response, governments are introducing national and local legislation to incentivize residential development.
Global Housing Shortage
Developers can
conduct a feasibility
analysis to assess where new legislation is incentivizing domestic development. This helps determine whether developers’ investment strategies align and whether the incentives outweigh potential qualification costs – for example, whether clean energy investments align with Inflation Reduction Act tax credits.
There’s increasingly short supply for residential real estate, and elevated construction costs are making housing even less affordable. In response, governments are introducing national and local legislation to incentivize residential development.
Global Housing Shortage