Real Estate & Construction News Roundup (2/21/24) – Fed Chair Predicts More Small Bank Closures, Shopping Center Vacancies Hit 15-year Low, and Proptech Sees Mixed Results

In our latest roundup, office occupancy rates hit all-time lows, global hotel investment to exceed numbers from 2023, federal courts look into real estate commissions, and more!

• Federal Reserve chair Jerome Powell is predicting that more small banks will likely close or merge due to commercial real estate weaknesses. (David Hollerith, Yahoo)
• An industry-shaking lawsuit making its way through the federal court system could upend the long-established way of paying commissions. (Jeff Ostrowski, Bankrate)
• A good retail space is getting harder to find with the vacancy rate for shopping centers nationwide at a 15-year low. (Emily Peck, Axios)
• As commercial real estate firms stepped up their adoption of proptech in 2021 and 2022, investment in the sector flourished; however, overall venture capital investment in proptech fell 42% in 2023 to $11.38 billion. (Leslie Shaver, Multifamily Dive)
• According to JLL Hotels & Hospitality Group’s 2024 Global Hotel Investment Outlook, global hotel investment will accelerate in 2024, exceeding investment in 2023 by between 15% and 25%. (Noelle Mateer, Hotel Dive)
• Construction pros are facing continued inflation, supply chain issues, burgeoning cyber threats and project delays, while the legal world is also shifting rapidly, from new federal funding mandates to Supreme Court rulings to state-level indemnity clauses. (Julie Strupp, Construction Dive)
• As hybrid work pivots from a trend to the new normal, office occupancy rates have hit all-time lows, while interest rates have spiked to historic highs. (Jon Wertheim, CBS)

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