Greg Ross, national managing partner, construction, real estate & REITs at Grant Thornton LLP, participated in a video interview during Nareit’s REITwise: 2024 Law, Accounting & Finance Conference held March 19-21 in Hollywood, Fla.
Ross discussed the shifting landscape of the construction and real estate sectors. He noted the influence of macroeconomic indicators on real estate activity, emphasizing the correlation with low interest rates, low unemployment, and high consumer confidence.
“There’s a lot of optimism in the market,” he said, reflecting anticipation for market stabilization and increased transactional activity. “There’s a lot of hope that we’re going to see some rate cuts here in 2024.”
Regarding construction, Ross highlighted sustained activity across various sectors such as data centers, industrial spaces, and multifamily housing. Despite challenges like rising interest rates and low home inventory affecting new home construction costs, he said that sectors like the industrial space and transportation infrastructure continue to thrive.
Looking ahead, Ross identified data centers and multifamily housing as sectors positioned to exceed expectations in the near term. However, he expressed caution regarding the office market, citing high vacancy rates in major metropolitan areas and the persistent impact of hybrid work models post-COVID.