Navigating the Future of Commercial Real Estate: Insights from Andrew Urban
By: Brady Mick, American Structurepoint, Leader of Strategic Design
Each month, our CoreNet Global IKO chapter brings you an industry expert with valuable insights, engaging stories, and thought-provoking perspectives on our ever-evolving world of work and place.
Recently we welcomed a great friend of the IKO Chapter, past chapter chair, and respected industry leader, Andrew Urban. As Executive Vice President of Occupier Services at Colliers, Andrew helps clients across multiple industries navigate complex real estate transactions, strategic portfolio management, and property acquisitions. His expertise spans leasing, asset dispositions, and global real estate strategy, ensuring companies receive best-in-class representation in an increasingly dynamic market.
Andrew unpacked a timely and critical topic:
How Shifts in Trade, Labor, and Technology Are Reshaping Corporate Real Estate
With ongoing trade policy changes, labor shortages, and emerging technologies, the landscape of corporate real estate (CRE) is undergoing significant transformation. Andrew addressed two key questions impacting our work:
- What do these shifts mean for workplace strategy, industrial site selection, and investment decisions?
- How are these changes already reshaping commercial real estate in the Midwest and across the U.S.?
Andrew’s insights provide a some insights for CRE professionals to anticipate and adapt to the evolving market forces shaping 2025 and beyond.
1. Tariff and Trade Policy Uncertainty – Impact on Construction and Development Costs
One of the most immediate challenges facing commercial real estate is the uncertainty surrounding trade policies and tariffs on key materials. Changes in global trade agreements are disrupting supply chains, particularly for construction materials such as steel, gypsum board, and plastics—many of which are sourced from Canada, Mexico, and China.
Impact on CRE:
- Higher material costs → Increased expenses for developers and corporate tenants.
- Project delays → Uncertainty in pricing and availability of construction materials.
- Pressure on procurement strategies → Developers must rethink supply chain logistics.
How to Plan and Design Smarter:
- Diversify material sources to include domestic or nearshore suppliers.
- Lock in contracts early to mitigate future price hikes.
- Explore alternative building materials that are less impacted by tariffs.
For those designing workplaces and industrial spaces, understanding how material costs fluctuate will be critical in budgeting and planning for new developments and renovations in 2025.
2. Labor Shortages and Skills Gaps – Impact on Site Selection and Workplace Design
The labor market is tight, and skilled workforce shortages are a growing concern across industries. Companies are struggling to find skilled tradespeople, engineers, and technical workers needed to support advanced manufacturing, logistics, and automation.
At the same time, housing affordability is directly affecting workforce mobility—employees are less able to relocate to areas where jobs are available.
Impact on CRE:
- Challenges in site selection → Companies need locations with access to talent pipelines.
- Rising labor costs → Increased competition for workers is pushing wages up.
- Workplace experience is now a retention strategy → Companies are using workplace design to attract and keep top talent.
How to Plan and Design Smarter:
- Prioritize locations near technical colleges and workforce training programs.
- Design workplaces for hybrid and flexible work models, reducing reliance on high-density office footprints.
- Invest in employee-centric workspaces that enhance retention and well-being.
As companies reshape their workplace strategies, CRE leaders must align site selection and office design with talent availability to remain competitive.
3. Reshoring & Nearshoring – Impact on Industrial & Office Space Demand
The reshoring of manufacturing and logistics is accelerating, as companies bring operations back to the U.S. or relocate to Mexico for closer access to North American markets.
This shift is increasing demand for industrial properties, particularly in regions with strong infrastructure for power, water, and logistics.
Impact on CRE:
- Growing demand for industrial real estate → Warehouses, distribution centers, and manufacturing facilities are expanding.
- Increased site competition → Locations with robust infrastructure are becoming scarce.
- Changing office space needs → Companies may downsize corporate HQs but expand regional hubs.
How to Plan and Design Smarter:
- Seek infrastructure-ready locations that can support industrial and logistics operations.
- Integrate office, industrial, and residential spaces in master-planned developments.
- Consider flexible lease structures to accommodate evolving workforce needs.
Companies that embrace reshoring trends will require more dynamic, multi-functional spaces that can support both manufacturing and corporate operations.
4. Inflation and Interest Rates – Impact on CRE Investment and Workplace Decisions
With higher interest rates and inflation, the cost of borrowing for real estate development has risen sharply. Investors and businesses must reassess their CRE strategies considering these economic pressures.
Impact on CRE:
- New construction projects may slow down due to financing challenges.
- Companies are rethinking office footprints to control lease costs.
- Energy efficiency and sustainability are becoming top priorities to reduce operating expenses.
How to Plan and Design Smarter:
- Focus on adaptive reuse projects rather than ground-up developments.
- Incorporate energy-efficient building systems to manage long-term costs.
- Prioritize locations with strong incentives (opportunity zones, tax credits).
In 2025, flexibility will be key—CRE leaders must create resilient portfolios that adapt to economic cycles and evolving business needs.
5. AI, Automation & Data Centers – The Future of Work and Workplace Needs
AI and automation are reshaping industries, reducing demand for traditional office space while increasing the need for data centers and high-tech facilities.
Impact on CRE:
- AI-driven automation will reduce the need for traditional offices but increase demand for collaboration hubs.
- Surging data center demand will drive investment in high-power, high-connectivity sites.
- Smart buildings will become the norm, integrating AI-driven efficiency systems.
How to Plan and Design Smarter:
- Design hybrid-friendly workspaces that prioritize collaboration over individual desks.
- Invest in locations with strong data infrastructure for AI and cloud computing.
- Use AI-driven analytics to optimize workspace utilization and energy efficiency.
The future of work is being defined right now—CRE professionals must ensure that spaces enable innovation, adaptability, and digital transformation.
Conclusion: Preparing for 2025 and Beyond in CRE
The commercial real estate landscape is shifting at an unprecedented pace, shaped by economic forces, policy changes, and the relentless advance of technology. For those responsible for designing, managing, and investing in the places where people work and produce, the next few years will demand more than adaptation—they will require foresight, agility, and bold decision-making.
Now is the time to ask the hard questions: How do we design spaces that attract talent, fuel productivity, and sustain long-term value? How can we build work environments that are not just reactive to change but actively shape the future? The answers lie in a willingness to embrace complexity, challenge conventional models, and invest in innovation.
Andrew’s insights show us that the most successful CRE professionals and business leaders will not be those who wait for clarity but those who engage with uncertainty as an opportunity. The future of work and place is not something to be apprehensive toward; the future is something to be designed.