PROBIS goes US

PROBIS set off for "the city that never sleeps

and spoke with existing customers and potential new partners about the need for digital transformation, new ways out of housing shortages, ESG measures, and more.

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New York

Hardly any city has a more dynamic market for residential and commercial real estate, but here, too, the industry is in crisis after the boom of recent years.

During our ten-day stay in the mega-metropolis, we spoke with existing customers and future partners about the opportunities of digitization, creative ideas for addressing the housing shortage, and the growing importance of ESG criteria and their implementation with the help of digital controlling tools.

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‍Anindustry in transition

In recent months, inflation in the USA has led to uncertainty on the American real estate market, similar to the situation in Europe. Further uncertainty has been generated by the rise in interest rates, which in turn has made real estate financing more expensive. As a result, the transaction market has cooled noticeably, leading to price corrections and a decline in investor interest.

In addition, the worsening housing shortage and increasingly hybrid work models, which are leading to drastic vacancies in office space, are demanding a rethink on the part of city authorities and real estate developers.

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For example, the conversion of vacant commercial and office space to residential use is being discussed.

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On a few days of the week, employees still work in the office, while on the remaining days they work from home. This can be seen, among other things, in the occupancy figures in the metro. Although there are still many long-term leases that were signed before the pandemic, the vacancy rate is increasing rapidly. This time, the crisis is not triggered by a recession, but by a fundamental change in the way things are done. The trend is clear: the need for office space will decline in the coming years.

As is the case here, ESG factors continue to gain traction in the U.S. real estate sector and are influencing, albeit still cautiously, investor and corporate decision-making.

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