From Drones to Immigration, The Counselors of Real Estate Provides Seven Insights Into Forces Reshaping the Industry

What will drive real estate and economic decisions in the future? Members of The Counselors of Real Estate (CRE) recently tackled that all-important question in a series of panel discussions at the organization’s annual convention in Charlotte, N.C.

The organization, which serves 1,100 members worldwide and represents no single property specialty, is known for providing objective, balanced perspectives on critical issues affecting commercial and residential real estate. What follows are seven major takeaways stemming from this year’s convention.

1. Big-box retail will not surrender to e-commerce — In a discussion led by Michael MaRous, president of Park Ridge, Ill.-based real estate advisory firm MaRous and Co., panelists stated that retail adaptation and integration of Internet shopping will be crucial in the coming years. The panel emphasized the need for big-box chains to create smaller formats more compatible with urban core markets. These smaller concepts, the panel believes, should be implemented alongside larger formats in select shopping centers.
2. Drones are not novelties, toys, hazards or nuisances — Members of the Counselors of Real Estate believe drones to be essential tools that will open doors for smart users of the technology. “Drones are more affordable than ever, making aerial data gathering a mandatory piece of the real estate tool set,” said Noah Shlaes, managing director at Newmark Grubb Knight Frank’s Chicago office and moderator of a panel discussion on remote sensing technology.
3. With the right infrastructure, the center of the world can be anywhere — Jerry Orr, director of the Charlotte/Douglas International Airport, emphasized that point during a session focused on logistics and its impact on the real estate market. Speakers described how mega-sized ships, expanded ports, global distribution via truck, rail and air, increased regionalized warehousing, and both suppliers’ and retailers’ promises of same-day delivery are providing ever-expanding opportunities in real estate and its supporting infrastructure. Consequently, smaller cities are bigger players in the world economy.
4. Healthcare is now laser-focused on real estate — According to a panel led by William Wiebe of CBRE’s Cincinnati office, the focus in the healthcare sector will be on catering to two distinct groups — people under the age of 50 and those over age 50 — and meeting their preferences for healthcare delivery. Large healthcare facilities are expected to become the new big-box anchor at retail malls, the panel predicted.
5. Investments in immigrant relocation can provide positive outcomes — Bruno Ettenauer, CEO of Austria-based commercial real estate firm CA Immobilien Anlagen, noted that despite pains in the transition process, the prognosis for immigrants settling into European countries will be positive, but a long-term plan will prove to be key. Other panelists on the “World Economic Discussion” panel did not readily agree, citing difficulties in finding homes for refugees as a challenge and predicting shortages in new construction as a result of the immigrant influx.
6. Are you afraid of Internet hackers? You should be —Speakers on a cybersecurity panel noted that office properties can be particularly vulnerable to attack by Internet hackers. “If a hacker can get into a building’s unsecured printers, he can overheat them, start a fire and set off your sprinkler system,” said George Hickey III, advisory board member of ThreatTech LLC. That’s just one example of the havoc that could occur if systems are left unprotected.
7. If you don’t build a social media presence, don’t expect people to find you — A panel comprised of members of the Counselors of Real Estate joined Rachel Cogar, CEO of Charlotte-based Puma Creative, to discuss social media strategy. Anthony DellaPelle, partner at the law firm of New Jersey-based McKirdy & Riskin, noted that having your firm’s presence on social media makes it visible and findable in online searches — placing the company on the short list when potential clients need the services you offer. “The new model is to build a web of places people can find you. It’s important to be authentic and to share relevant content as a way to differentiate yourself and your company,” said Cogar. “Effective social media is not about self-promotion.”

Established in 1953, members of The Counselors of Real Estate are admitted into the organization by invitation only and carry the credential of Counselor of Real Estate (CRE).

To be invited, advisors must be recognized by their peers for outstanding professional achievement, impeccable judgment, and commitment to integrity in their counseling careers.

— Katie Sloan