ATLANTA, July 25, 2019 /PRNewswire-PRWeb/ -- 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:
- The Technology Effect
- End-of-Cycle Economics
- Political Division
- Capital Market Risk
- Population Migration
- Volatility and Confidence
- Public and Private Indebtedness
"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/.
About RPTA
Real Property Tax Advisors (RPTA) is a leader in the commercial property tax industry and the largest woman-owned property tax consulting company in the United States. We are a strategic partner for our clients, helping them develop proactive commercial tax risk management plans. Through our comprehensive knowledge of the commercial property industry, as well as our proven track record of delivering tax savings, we produce consistent and innovative value for our commercial clients. Learn more at http://realpropertytaxadvisors.com.
About The Counselors of Real Estate
The Counselors of Real Estate® is an international organization of commercial property professionals from leading real estate, financial, law, valuation, and business advisory firms, as well as real property experts in academia and government. Membership is selective and extended by invitation, although commercial real estate practitioners with 10 years of proven experience may apply.
Counselors have created and endowed the MIT Center for Real Estate, resolved the dispute between the developer of the World Trade Center and its insurers post 9/11, led the privatization of U.S. Army Housing, developed a multi-billion-dollar, 10-year master plan for Philadelphia Public Schools, and valued both the Grand Canyon and Yale University.
SOURCE CRE
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