With the turn of the year comes ill-fated resolutions, needed but annoying rain, and a slew of new legislative enactments coming into effect. While commercial real estate is not typically a hotbed for legislative activity, there are a few noteworthy changes that may affect prospective projects, mostly focused on relaxing procedural requirements to incentivize the construction of new housing projects to combat the state’s ongoing housing crisis.

California’s Title 24, the state’s energy code, has required solar for all low-rise multifamily projects since 2016, but new provisions have gone into effect this year, impacting any projects permitted since Jan. 1, 2023.

We speak with Aaron Jodka, National Director of Capital Markets Research for Colliers, about the state of commercial real estate investing, including its trends and how interest rate hikes are impacting the commercial real estate market. Jodka also shares the outlook for commercial real estate investing.

Practical Law Real Estate asked leading real estate practitioners to share their thoughts on recent developments impacting the US commercial real estate market.

The CRE industry has undergone significant changes in recent years, and we’ll highlight the most interesting, impactful and somewhat surprising aspects of those changes.

The global CRE industry faces uncertainty. Leaders can navigate the future of real estate in 2023 and beyond by focusing on strategic execution, talent, and innovation.

Rental demand will remain strong due to rising homeownership costs, especially with mortgage expenses nearly doubling since January, Hale says. This has forced many would-be homebuyers to stay in the rental market, exacerbating already high demand. A chronic shortage of housing is another factor.

There are changes coming to multifamily that may not seem so desirable in the short run, but which will help stabilize markets and the industry overall.

The real estate industry is moving beyond what it perceives as cyclical headwinds. No matter the trends, we believe companies must be flexible and adapt quickly to market changes.