ATLANTA (PRWEB) JULY 25, 2019
Anne Sheehan, CRE, CEO of Real Property Tax Advisors (RPTA) shared the current and emerging issues expected to have the most significant impact on real estate in 2019 and 2020, as identified by The Counselors of Real Estate. U.S. infrastructure and housing ranked as the leading concerns of the 1,100-member global real estate advisory organization.
“Inadequate infrastructure creates a hard ceiling for economic development, and real estate values are tied to sustainable growth,” said Sheehan, a Counselor of Real Estate. “Crumbling infrastructure thwarts economic growth. One can make the argument that commercial property taxes are increasing but the surrounding area is not benefitting, which gives property owners room to debate the assessed value increase.”
The report also cites that roads, bridges, tunnels, railways, airports, the power grid, water systems, and levees are giving way with greater frequency. While the White House and Congressional leadership have discussed funding of up to $2 trillion, it remains unclear what action government leaders will take.
Weather and climate-related risks are also an issue of concern for The Counselors, as real estate investors are requiring that climate risk be assessed and factored into return projections and day-to-day decisions. The report states weather and climate-related risk has emerged as a new—and likely permanent—aspect of fiduciary duty and what it means to assess, disclose, and manage these risks for real estate investments.
“Real estate investors can no longer rely on historic performance to predict future returns,” Sheehan continued. “With the frequency and intensity of events increasing, weather and climate-related events present physical and operational risks for real property.”
The remaining issues identified by The Counselors of Real Estate are:
“Many of these issues are interrelated and thus influence one another,” Sheehan stated. “Clients of Counselors seek unbiased, objective advice on the critical factors that will impact all property sectors today, as well as those issues that may affect their decisions over the next ten years. This thought leadership initiative is an invaluable service to those clients and to the real estate industry in general.”
The Top Ten Issues Affecting Real Estate™ are developed by The Counselors of Real Estate’s External Affairs Committee, with issues identified, debated, and voted on by the general membership. For additional information and perspective on each issue, visit https://www.cre.org/external-affairs/2019-20-top-ten-issues-affecting-real-estate/.