Real estate is seeing a slow, but steady recovery. But the age-old saying that real estate is all about location, location, location, needs to be updated. It is also about jobs, jobs, jobs. 

The accountants and consultants on Plante Moran's real estate and construction team look at the  many factors affecting the industry in their recent "Real Estate Outlook." The bottom line: they find real estate has adjusted to the New Normal and has regained its role as an important tool in the recuperating economy.

  • In his talk with the Plante Moran team, Itzhak Ben-David of the Fisher College at The Ohio State University and Freakonomics columnist, emphasizes the interdependence between real estate and jobs. He also has a word for investors: REITs continue to offer relatively good yields, but that doesn't make them safe.
  • Workplace design expert Angie Lee of the SmithGroup suggests that commercial real estate owners are going to have to adjust to demands for a new kind of office -- one that is flexible and built around moveable technology. The office of the future can accommodate more staff members in less space, but there will be a need for tech support. Perhaps something the building owner will be called on to supply.
  • What are downtowns going to look at in the future? That is another topic that the Plante Moran real estate experts address. They see placemaking as the antidote to struggling downtowns.  Probably one of the most watched placemaking projects is going on in downtown Detroit spearheaded by Dan Gilbert, who has been dubbed Mr. Downtown. One of the consultants working on the Detroit plan compared it to two Middle Eastern cities that built downtowns almost from scratch - Abu Dhabi and Dubai.

Matt Cullen, whom Gilbert chose to guide his revitalization projects in Detroit, Cleveland, and Cincinnati, talks about placemaking as a quick, cheap approach to revitalization.

The Plante Moran team has hands-on experience and puts today's real estate industry into perspective. As business advisers, they address what is happening with retail and they do get back to the topic of location.

According to their "Outlook," markets grounded in the energy and high-tech industries show the most near-term promise, while places anchored by major education and medical institutions should perform better over time.

You can read their complete report “Outlook: Real Estate” here.