Green technology is revolutionizing operational practices in the real estate industry, from the materials used in construction to the technology deployed in utility data tracking. As regulations evolve and technology advances, environmentally friendly solutions are solidifying their role in building design and construction.

For more than a decade since the end of the global financial crisis, the U.S. housing market has been grappling with long-term structural undersupply, a challenge that continues to profoundly influence investment dynamics today. This persistent housing shortage has led to surging rents and home prices, creating a significant affordability gap.

The landscape of office real estate is going through a unique transformation, where sustainability and wellness aren’t just industry buzzwords but basic factors shaping the future of commercial assets. Environmentally conscious operational practices and health-focused amenities are becoming essential to driving long-term asset value, attracting quality tenants and enhancing retention.

Green building strategies are quickly becoming a priority for real estate decision makers in 2025, as the built environment accounts for up to 42 percent of global annual emissions. Further, with office supply predicted to drop by 73 percent amid a tightening market and the impacts of climate change, upgrading environmental performance offers a unique opportunity to revitalize at-risk properties.

In response to environmental, sustainability and climate risk developments, property owners and developers are faced with increasing obligations regarding reporting and compliance, including potential retrofits and structural or operational modifications. As property owners adapt to new regulations, lenders should also update their loan documentation to address compliance risks.

Institutional investors advised by J.P. Morgan Asset Management in partnership with the principals of Georgia Capital, an Atlanta-based residential investment and development firm, and its affiliated production homebuilding company, Paran Homes, have launched Laseter Development Group.

As sustainability becomes an increasing priority in commercial real estate, green building certifications are gaining traction across various industries. In January, BREEAM highlighted its 2024 growth, revealing a 43 percent increase in certified assets across North America.

Although ready to commence a new real estate cycle, real estate leaders globally are braced for another challenging year of uncertainty, with lingering inflation — largely driven by factors including geopolitical instability — and persistently higher interest rates in some regions potentially delaying a hoped-for recovery in capital markets and occupancy metrics. This is according to the Emerging Trends in Real Estate Global Outlook 2025 from PwC and the Urban Land Institute (ULI).

The senior housing sector ended 2024 with the highest investment volume since second quarter 2022, buoyed by increased confidence in the capital markets and strong underlying fundamentals within the asset class.

Welltower has acquired a portfolio of 38 ultra-luxury senior housing communities and nine entitled development parcels, including a 31-property in-place portfolio valued at C$3.2 billion ($2.22 billion), from Ontario Teachers’ Pension Plan for aggregate consideration of C$4.6 billion ($3.18 billion).

Office buildings’ average sale price fell 11 percent to $174 per foot in 2024, as demand for space remained weak, according to Yardi.

Maslow’s Campus Communities and Pennybacker Capital Management have formed a strategic partnership that will provide Maslow’s with capital to pursue investment strategies focused on public-private partnerships (P3s) with universities nationwide seeking to modernize on-campus student housing infrastructure, as well as the selective acquisition and development of off-campus communities.

Principal Asset Management has held a final close for its Principal Data Center Growth & Income Fund with total equity fundraising of $3.64 billion, according to a Feb. 28 announcement from the firm.

The $71.6 billion New Jersey Division of Investment (NJDOI) is considering a commitment of up to $400 million to StepStone Real Estate Partners SMA (separately managed account), a vehicle of StepStone Group, according to meeting materials from Jan. 29.

Barings has entered into a definitive agreement to acquire Artemis Real Estate Partners, an $11 billion-plus real estate investment firm.