Real Estate & Construction News Roundup (7/2/24) – Increase in Commercial Property Vacancy Rates, Trouble for the Real Estate Market and Real Estate as a Long-Term Investment
In our latest roundup, the evolution of stadium construction, an increase in legal and legislative action affecting the multifamily sector, and growing concerns for owners of office space.
- The work-from-home trend will likely push up the commercial property vacancy rate in 2026 to a peak average of 24%, or 4 percentage points higher than the first quarter of this year. (Jim Tyson, CFO Dive)
- In recent years, stadium construction has evolved to focus more on cultivating the game day experience with some multibillion-dollar projects breaking ground, as existing venues get renovations. (Zachary Phillips, Construction Dive)
- A number of prominent issues affecting the multifamily industry, including rent control, fees and antitrust concerns, have been subject to increasing levels of legal and legislative action over the past year. (Mary Salmonsen, Multifamily Dive)
- The failure of several large lenders earlier this year and the banking turmoil that followed have fueled worries for owners of office space. (Alex Veiga, Yahoo)
- The stabilization of construction activity is likely due to a burst of investment that’s hit the sector, but real estate is still in trouble, especially if mortgage rates remain elevated. (Jennifer Sor, Yahoo)
- About 36% of surveyed Americans ranked real estate as the top long-term investment, more than cited stocks or mutual funds, gold and savings accounts or certificates of deposits. (Ana Teresa Solá, CNBC)
- The EPA’s steps to crack down on PFAS or “forever chemicals” will have significant implications for the commercial and industrial real estate sectors. (Kathryn Peacock, Steven Luzkow, GlobeSt)
