Commercial Real Estate News Brief: December 2017

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Every month, JLL’s regional team curates the top commercial real estate industry articles to keep you in-the-know. In this month’s edition, JLL spotlights the tax reform, technology in the CRE industry and mixed-use developments.

Tax Reform Brings Big Changes to the Commercial Real Estate Industry

JLL CRE News Brief

Newspaper image via NS Newsflash.

In case you haven’t heard, the House and the Senate released separate versions of the Tax Cut and Jobs Act earlier this month. With the new tax code, the CRE industry is expected to benefit from strong economic growth—especially in the retail sector.

With a lower corporate tax rate, CRE lending institutions, such as banks, should expect higher after-tax profits. Additionally, if there is an increase in interest rates, lending institutions will likely see an increase in the net-interest margin, boosting their profits. Likewise, CRE investment management firms may also see an increase in after-tax profits as a result of the lower rate.

To learn more about the new tax code and how it might impact the CRE industry, read our 2017 Guide to Tax Reform.

Real Estate Firms Embrace Digital First Innovations

Facing an influx of groundbreaking technology and innovations, real estate firms are stepping away from traditional transaction experiences and adopting newer, more digitized processes to save money, streamline efficiency and boost client satisfaction.

For example, Velox RE and the Cook County Recorder of Deeds tested blockchain technology in the CRE space earlier this year. Blockchain works to reduce real estate fraud by storing a continuously growing list of property records that are linked and secured using cryptography. Many believe the technology has the potential to revolutionize real estate deals and recording keep costs.

Likewise, chatbots are also making their way into the CRE industry. Much like Apple’s Siri and the Amazon Echo, real estate agents are beginning to leverage chatbots to improve lead generation and enhance customer experience by automating the initial stages of contact between agents and prospects.

Read the full article for more information on new technologies impacting CRE. 

Mixed-Use Developers Go the Extra Mile to Provide a Work-Life-Play Environment 

As more people flock to communities that support a work-life-play lifestyle, developers are shifting their focus to human-centric designs that cater to the demands of young professionals.

Mixed-use developers are now taking a ‘more is more’ approach to enhance the living experience. In addition to finding a perfect blend of luxury apartments, retail and office space and hospitality, developers now take on the responsibility of programming their public spaces in ways that attract tourists and locals alike and enhance the overall environment.