Operational Challenges

Commercial Due Diligence

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Operational challenges in US office CRE escalate as owners grapple with surging costs for tenant fit-outs, structural retrofits, and premium amenities to compete in a flight-to-quality market. Insurance premiums have spiked 20-30% annually due to climate risks and litigation exposure, squeezing NOI margins on aging properties ill-equipped for modern ESG standards.

Labor shortages in construction and skilled trades delay critical upgrades, pushing capex timelines and inflating budgets amid supply chain bottlenecks lingering from 2025. Multifaceted retrofits for energy efficiency and hybrid workspaces demand upfront capital few Class B/C owners can access, widening the performance gap with trophy assets.

Please check out all of our resources at WBTreeceConsultants.com

Schedule your comprehensive industrial property inspection today to ensure your facility meets all safety and compliance requirements while maintaining optimal operational conditions.

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