New report shows tax incentives and ease of space reuse as priorities
milwaukee, August 23, 2022 /PRNewswire/ — Wipfli LLP (Wipfli), a top 20 accounting and consulting firm, today released a new report based on a survey of 198 real estate leaders to find out how they set themselves up for long-term success. I learned how to adapt to and keep up with evolution. market conditions. Respondents to Wipfli’s real estate outlook prioritized differentiators such as ESG and technology, as well as business strategies such as tax incentives and the ability to easily repurpose space. Key findings include:
- 88% of respondents are optimistic about current real estate market conditions
- 77% say ESG has influenced their investor pool or real estate project
- 66% have not changed their investment strategy in the last 12 months
- 51% of real estate leaders say their business is facing talent shortages
- 38% have very clear goals for digital transformation
“The technical debt incurred by the real estate industry has expired,” he said. Brad Warner, a leader in Wipfli’s construction and real estate operations. “Our research shows that investing in technology and digital capabilities is key to staying relevant and resilient, especially as external factors such as ESG trends shift investor and tenant demand. It proves that real estate organizations understand that.”
ESG is now table stakes in the real estate industry. Only 23% of survey respondents say ESG has no impact on investor pools or projects. The remaining 77% identified ESG as having a range of impacts. For some, the investor pool has dwindled, making it harder to bring in new investors. Others said it actually increased projects. Some say that helps attract and retain employees. ESG should be an important part of decision-making regarding new acquisitions, lease renewals and investor relations.
Compared to other industries, the real estate industry has lagged behind in adopting new technologies, but it is becoming an increasing focus for real estate industry leaders. While some businesses feel they don’t need the sophisticated connectivity provided by technology more complex than spreadsheets and accounting software, others believe how important digital transformation is to their future success and longevity. The majority of survey respondents are in the process of digital transformation, with 38% having very clear goals to achieve and 32% struggling to execute their plans . Only 15% believe digital transformation is not necessary at all.
More evidence that the industry is turning its back on technology: 85% of real estate leaders recognize the importance of digital transformation. Why: Better products are being developed, costs are falling, platforms are standardizing, and most importantly, data analytics are becoming more sophisticated. Modern technology is focused on creating value rather than creating efficiency or convenience. Technology products are already helping organizations make faster decisions, close deals faster, and better structure those deals. And that’s just one side of the benefits. Like ESG, technology is a necessary investment to continue growing and competing.
To close the deal, real estate companies are also looking for bonuses to help make the numbers work. Tax incentives are numerous and real estate companies are reluctant to do business without tax incentives. And given all the disruption caused by the COVID-19 pandemic, it’s no surprise that repurposing existing space was his second most important business strategy the leader is leveraging.
Dive deeper into Wipfli’s real estate outlook results.
About Wipri
At Wipfli, we provide industry-focused assurance, accounting, tax, and consulting services and are committed to making a lasting, positive impact on our clients, helping them overcome their personal and business challenges. , we help you plan for future success. Wipfli ranks among the top 20 accounting and business consulting firms in the country. We are proud to offer our clients the value and experience of a diverse company specializing in a wide range of services and industries dedicated to lasting results, excellent service and lifelong relationships. Learn more at wipfli.com.
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Source: Wipfli LLP
