Jones Lang LaSalle (JLL), a global real estate firm, refers that for its long-term growth strategy it has identified some macro trends that it considers important guiding influences in the continued expansion and evolution of this industry.
In October 2022, the World Bank’s latest Urban Development Update predicted that 70% of people worldwide will live in cities by 2050, up from 56% at the time of the report. With that growth will come an increasing demand for all types of real estate services and advice.
While work patterns and preferences will continue to evolve rapidly, driven in part by new possibilities created by technology and the widespread adoption of flexible work, cities will thrive as they meet people’s lifestyle and economic ambitions, characterized by vibrant, renovated offices and cultural spaces.
Another investment opportunity: while corporate outsourcing of real estate services still represents a minority of total commercially built real estate worldwide, the long-term trend toward outsourcing that began in the early 1990s, originally with U.S.-based corporations, is now a global trend.
In corporate boardrooms around the world, the pandemic has significantly enhanced the growing focus on reimagining workplaces and concepts for the future of work.
A third prong is in addressing and managing climate change and the finite nature of global resources as defining issues of the times.
According to the International Energy Agency, real estate and the built environment account for nearly 40% of total direct and indirect global CO₂ emissions.
At the same time, stakeholders are demanding greater attention to ESG (environment, society and corporate governance) criteria from companies and organizations in all areas of society.
These and other factors, including an increased awareness of the importance of promoting health and wellness, are coalescing into a strong and growing demand for sustainability services and advice throughout the real estate industry.