5 big questions real estate is asking in 2024

Navigating disruption and uncertainty are now standard in a world that continues to face economic and political challenges.

From concerns over the productivity of a hybrid workforce and how to gain an edge with artificial intelligence, to the ongoing conundrum of what to do with office buildings that are heading for obsolescence, investors and corporate occupiers have a lot on their minds.

Join us in diving into some of the biggest issues facing the commercial real estate industry in 2024.

Years into the great hybrid work experiment, many firms worry it just isn’t delivering the goods.

Boosting productivity is one of the top three reasons employers are encouraging people to work from the office, recent JLL research found. They feel it’s needed to maximize collaboration and innovation.

“Employers associate on-site work with major benefits such as social connection and cultural bonds,” says Flore Pradere, Global Work Dynamics Research Director. “They see it as a significant contributor to employee performance.”

But there are conflicting issues from an employee standpoint. Almost half the workforce believes they’re more productive at home.

“Office noise and lack of privacy are significant problems, discouraging many employees from returning,” says Pradere. “People say they simply can’t concentrate and it’s affecting their work.”

The answer, then, is that more work is needed to bring expectations closer together. A big part of it will be creating offices that deliver what’s needed for a hybrid workforce. Pradere suggests office use data and human-centred design are key to cracking the performance code.

Demand is on the rise for real estate that helps organizations meet their net zero carbon (NZC) goals. But for now, there’s just not enough space, particularly in the office sector, to accommodate everyone.

In the U.S., the supply of low-carbon workspaces will be 57 million square feet short by 2030, while no cities in the Asia Pacific region have adequate supply. In Europe, low NZC building demand is outstripping supply by a factor of three to one. 

“The gap between supply and demand is only set to widen,” says Guy Grainger, Global Head of Sustainability Services and ESG at JLL. “It’s creating opportunities for forward-thinking developers and investors to consider retrofitting existing office buildings with the prospect of higher rents in the short-term and protecting value in the long-term.” 

Grainger points out the commercial case for sustainable buildings has never been stronger.

“Mounting costs from climate risk, increased tenant demand, tougher regulation and restrictive finance all point to investment in decarbonization as the smart long-term strategy” he says.