Woes aplenty in real estate

That U word — uncertainty — is back.

It comes in a report from The Counselors of Real Estate, an invitation-only global real estate organization. The group recently released its annual list of the top 10 issues that affect real estate. The worries dig deep, a reminder that the economy, to some, remains shaky.

“This list reflects a higher degree of economic uncertainty than in years past,” The Counselors of Real Estate chairman Noah Shlaes says in a statement. “Anticipation of rising interest rates, continued currency devaluation and excess capital flowing into the United States are all on the minds of our membership. Combine this with a growing wage gap and major changes in demographics, and we've got a lot to think about this year.”

Here's a glance at the organization's top 10:

Demographic shifts: For seniors, this includes downsized homes, senior communities and assisted-living facilities. For millennials, the decision to buy or postpone buying is paramount.
Excess capital: This comes from funds outside the United States, and multifamily, says the report “continues to be very attractive.”

Rising interest rates: “When it happens, it will devalue future cash flows, thereby devaluing assets,” the report states. “An interest rate rise could spur short-term commercial development and slow home sales.”

Global instability: This includes currency devaluation, and investors, says the CRE, should keep it in mind when making decisions.

Urbanization: The desire to live in “walkable” communities crosses through demographics and geography. Shopping malls, the report adds, must adapt to urban trends, and go to one of two successful models: luxury or discount offerings. 

Energy: Alternative energy forms will continue being attractive. 

Gap between rich and poor: This could impact purchasing power, diminish housing choices and curb home ownership, the report projects.

Infrastructure: Infrastructure nationwide lags behind many countries, the report states. From bridges to power/gas/water lines, the aging system, the report adds, “no longer satisfies the needs of a highly connected populace, let alone businesses and world economies.”

Technology: Crowdfunding and other new technologies have dramatically changed the industry. 

Changing retail model: Store sizes are shrinking and location strategies are constantly changing.