Experience-driven lifestyle districts reignite global cities.
01
Mixed-use lifestyle and entertainment districts will take center stage in 2025 as the new anchors for cities looking to drive community engagement and bring people together around visceral shared experiences. Hospitality, retail, sports, and residential spaces make up the mix of these experience-driven areas, which is also driving demand for safe streets and reliable transit options.
A large building with many windows.
demand for sustainable design supercharges innovation and value.
02
With organizations everywhere increasingly wary of climate risk, buildings designed with resilient and sustainable strategies are trading at premium values. This sustainable surge is also driving demand for game-changing innovations in construction processes and the materials industry. Adaptive reuse of old buildings, energy-efficient designs, weather-scenario planning, and other green techniques are anticipating local climate challenges while lowering waste and carbon. Solutions such as mass timber, low- or no-carbon interior finishes and furnishings, and zero-carbon cement are leading a materials revolution.
A large glass building with a courtyard and people walking around.
A room with a large pillar and a couch and a table.
DEEPLY DISCOUNTED BUILDINGS DRIVE A CONVERSION BOOM.
03
With aging office buildings and other devalued assets trading at deeply discounted rates, the adaptive reuse boom is poised to create valuable new real estate beyond just office to residential conversion. As the cost of capital comes down, 2025 will usher in a new financial environment that will inspire developers to seek out creative conversions of all types, including retail to healthcare, retail to sports, office to senior living, office to science labs, and more.
TALK
TURNS TO ACTION ON ATTAINABLE HOUSING.
04
Attainable market-rate housing becomes the number one priority for cities around the world in 2025 as new financial incentives and lowering interest rates converge with changes to zoning laws and building codes to create an attractive market for housing developments of all types.
A large glass building with people walking around.
THE WORKPLACE
OF THE FUTURE HAS ARRIVED.
05
The future workplace is here now, and it’s all about employee experience, inspiration, and the value proposition realized by building owners and developers. In 2025, tenants will continue their flight to quality in search of workplace experiences that motivate employees and meet their professional aspirations. Landlords looking to compete must be laser focused on transforming their spaces into fully amenitized, Class A buildings close to transit and within the 20-minute lifestyle mix.
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