美國和加拿大房地產(chǎn)趨勢2024-英

2024|Canada

United

StatesEMERGING

TRENDSIN

RE

AL

ESTAT

E?Emerging

Trendsin

Real

Estate?2024Contents134Notice

to

Readers75

Chapter

3Property

TypeOutlook77

Multifamily:

Build

Baby

Build86

For-Sale

Housing’s

Balancing

Act

in

2024Chapter

1Emerging

Trends

in

CanadianReal

EstateCosts,

Deals,

and

Capital

Markets92Industrial/Distribution:

Fundamentals

andCapital

Markets

Normalize

as

Future

GrowthIs

Evaluated11

ESG

Strategy,

Reporting,

and

Performance13

The

Housing

Market

at

aBreaking

Point17

Markets

to

Watch2328103

Hotels106

Retail:

Despite

Challenges,

Retail

Emergesas

CRE

DarlingProperty

TypeOutlookBest

Bets

for

2024111

Office:

The

Future

Is

Now31

Chapter

2A

New

Era

Comes

into

Focus121

Chapter

4Markets

to

Watch36394246Higher

and

Slower

for

LongerThe

Great

ResetA

Painful

but

Needed

CapitulationIt’s

All

About

the

Debt128Grouping

the

Markets135Interviewees51

Eco-Anxiety

Comes

Home5759Even

Further

Out

of

ReachPortfolio

Pivot139

Sponsoring

Organizations61

Not

Remotely

the

Same6369Downtowns

Need

to

Reinvent

themselves—AgainAn

Artificial

Boom?Emerging

Trends

in

Real

Estate?2024iEditorial

Leadership

TeamEmerging

Trends

ChairsBraiden

GoodchildMiriam

GurzaMike

HargraveRandy

HoffPwC

Advisers

and

Contributing

ResearchersAndrew

Alperstein,

PwCMary

Beth

Corrigan,

Urban

LandInstituteAaron

Sen*Eric

Lemay*Michael

ReadyMichelle

McArthur*MihaiHomescu*MikeHarris*Abhi

JainErica

Pereira*Ernie

Hudson*EvanCohenAdam

Findlay*Adam

Moghtaderi*AgnieszkaMasse*Alec

Watson*Alex

Howieson*Ali

Abbas*Leo

Gonzalez,

Urban

Land

Institute

Katherine

HuhLisa

KentBeth

Burnham

MaceLake

MurphyEditors-in-ChiefChuck

DiRocco,

PwCFransMinnaar*Frederic

Lepage*Gloria

ParkMilanKshatriya*Mirjana

Simonovski*Nadia

King*Anita

Kramer,

Urban

Land

Institute

Jay

ParsonsChris

PorterGraham

McGowan*HadieliaYassiri*Haley

AndersonHarshini

Sivanand*Henry

Zhang*IanNelsonNadjaIbrahim*NatalieCheng*Nicholas

Mobilio*Nick

Ethier*Authors,

Chapter

1Marta

SchantzAmy

Perron*Glenn

KauthCarl

WhitakerAnastasia

Ivanova*Andrea

Ades*Andrew

AlpersteinAndrew

NelsonAndrew

Popert*Anthony

Di

Nuzzo*AsakoKitamura-Redman*Peter

KovessyCody

YoungAuthor,

Chapters

2

and

4Senior

AdvisersNick

WorrallAndrew

J.

NelsonNicole

StroudFred

Cassano,

PwC,

CanadaFrank

Magliocco,

PwC,

CanadaSteven

Weisenburger,

PWC,

U.S.ItishaJainPaul

Hendrikse*PeterHarris*Authors,

Chapter

3Jack

BrownGarrick

Brown,

RetailLesley

Deutch,

Single-FamilyHousingJacqueline

KellyJakeWileyPeterHill*Project

Staff,

ULI

Center

for

RealEstate

Economics

and

CapitalPaul

Fiorilla,

Office

and

Multifamily

MarketsPhilippe

Desrochers*PinarDogruer*Rachel

KleinAudreyTulio*Avery

PartiJasen

Kwong*Jeff

TaverasHousingAvikar

Shah

and

Justin

Starr,HotelsAhalya

Srikant,

Industrial/DistributionChanell

Hawkins,

CoordinatorAviShahJennifer

Farber*Jeremy

LewisJeremy

Pister*John

CrossmanJohn

Sheppard*JonathanOsten*Jonathan

PongJordan

AdelsonJordan

Samberg*Joseph

Moyer*Josh

ParksRahimLallani*Renee

SarriaULI

Editorial

andProduction

StaffJames

A.

Mulligan,

Senior

EditorLibby

Riker/Manuscript

EditorBrandon

Weil,

Creative

Director/Cover

DesignerDeanna

Pineda,

Muse

AdvertisingDesign,

DesignerCraig

Chapman,

Senior

Director,Publishing

OperationsBillStaffieriBlakeBylRicardo

RuizBrian

CacedaBrian

KeidaRichard

Martin*Richard

Probert*Rick

MatrosBrion

L.

SharpeBryan

Allsopp*Calen

ByersContributorsZach

AaronsLindsay

BruggerJohn

ChangLesley

DeutchEmily

GodwardRick

MunnRob

SciaudoneRobert

Coard*Roberto

HernandezSabrina

Fitzgerald*Sam

MelehaniSamay

Luthra*Santino

Gurreri*Sarah

LoganCarly

Stallwood*ChantelleCadeau*Charles

CampanyChris

BaileyJoshua

Musa*JulieSchloskyJustin

StarrChris

DietrickChris

Vangou*Christopher

CarlsonChristopher

EmslieCindy

Wu*KenGriffin*Laura

Lewis*Scott

Collinson*Scott

McDonald*Scott

TornbergShivalika

Handa*Sonia

Parmar*Spyros

Stathonikos*Stephan

GianoplusStephen

CairnsSteven

WeisenburgerTim

BodnerLeah

WaldrumLeanne

McKinnon*Lee

OverstreetLou

DefalcoEmerging

Trends

in

Real

Estate?is

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October

2023

by

PwC

and

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All

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reserved.No

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and

the

Urban

Land

Institute:Emerging

Trends

in

Real

EstateUrban

Land

Institute,

2023.?2024.

Washington,

D.C.:

PwC

and

the*Based

inCanadaEmily

Pillarsii

Emerging

Trends

in

Real

Estate

2024?Notice

to

ReadersEmerging

Trendsin

Real

Estateedition,andisoneofthemosthighlyregardedandwidelyreadforecastreports

intherealestateindustry.Emerging

Trendsin

Real

Estate

2024,undertakenjointlyby?isatrendsandforecastpublicationnowinits45th?PwC

andtheUrbanLandInstitute,providesanoutlookonrealestateinvestmentanddevelopmenttrends,realestatefinanceandcapitalmarkets,property

sectors,metro-politanareas,andotherrealestateissuesthroughouttheUnitedStatesandCanada.Emerging

Trendsin

Real

Estate

2024

reflects

theviewsofindividualswhocompleted?surveys

or

wereinterviewedasapart

oftheresearchprocess

forthisreport.

Theviewsexpressedherein,

includingallcomments

appearing

inquotationmarks,

areobtainedexclusivelyfromthesesurveys

andinterviewsanddo

notexpresstheopin-ionsofeither

PwC

or

ULI.

Interviewees

andsurvey

participants

representawiderangeofindustry

experts,

includinginvestors,fund

managers,

developers,

property

compa-nies,

lenders,

brokers,advisers,

and

consultants.ULI

and

PwC

researcherspersonallyinterviewedabout

600

individuals,andsurvey

responseswerereceived

fromalmost1,260individuals,whosecompanyaffiliationsarebrokendownasfollows:Privateproperty

ownerorcommercial/multifamilyrealestatedeveloper:37%19%12%6%Realestateadvisory,service

firm,

orassetmanager:Private-equity

realestateinvestor:Homebuilderorresidentiallanddeveloper:Bankorotherlender:5%Construction/constructionservices/architecturefirm:Investmentmanager/adviser:4%4%REITorpubliclylistedrealestateproperty

company:PrivateREITornontradedrealestateproperty

company:Other

entity:2%2%7%Throughoutthispublication,theviewsof

intervieweesand/orsurveyrespondentshavebeenpresentedasdirectquotationsfromtheparticipant

without

name-specific

attribution

to

anyparticular

participant.Alistof

theinterview

participantsinthisyear’sstudywhochose

to

be

identified

appearsattheendof

thisreport,but

itshouldbenotedthatallintervieweesaregiventheoptionto

remainanony-mousregardingtheirparticipation.Inseveralcases,quotescontainedhereinwereobtainedfromintervieweeswhoarenotlistedinthebackof

thisreport.Readersarecautionednotto

attemptto

attributeanyquoteto

aspecificindividualorcompany.To

allwhohelped,theInstituteandPwC

extendsincerethanksforsharingvaluabletimeandexpertise.

Withouttheinvolvementof

thesemanyindividuals,thisreportwouldnothavebeenpossible.Emerging

Trends

in

Real

Estate?202412Emerging

Trends

in

Real

Estate

2024?Chapter

1:

Emerging

Trends

in

Canadian

RealEstateEmerging

Trends

in

Canadian

Real

Estate“The

greatest

uncertainty

createsthe

greatest

opportunity.”The

precedingquotationfromoneoftherealestateindustryplayersinterviewedthisyearreflectsmuchofthesentimentheardabouttheuncertainoutlookfor2024.look

giventheBank

ofCanada’spauseon

raisinginterestratesformuch

ofthespring,

thoseinterviewedafterthebankbegantighteningmonetary

policy

tendedto

haveadifferentview.Manyoftheissues—suchasrisingcosts,

labor

shortages,

andtherelatedimpactson

affordabilityinthehousingmarket—havebeen

challengingtherealestateindustry

forsome

time.But

thisyear,therewasevidence

ofthecontinued

deepening

ofmoreRecent

trendshaveled

manyinterviewees

to

believeinterestrateswillcontinueto

be

higher

forlonger

thanexpected,

withrealestatedevelopment,

investment,andtransactionactivitylikelyto

remainsoft

into2024.And,

unlikeinpreviousyears,recent

trends—suchashigher

interestratesandmoreexpensive

interviewees

areapproachingallassetclasses,

eventhemostandincreasinglyscarce

capital—thatarecreatingmoredifficul-tiesformanyrealestatecompanies.

Whilethoseinterviewedfavoredsectorssuch

asindustrialproperty

andresidentialcategoriesincludingrentalandstudent

housing,

withafairearly

on

weresomewhatmoreoptimisticabout

thesector’s

out-

amount

ofcaution.

It

isnotablethatinterviewees

aregenerallyEmerging

Trends

in

Real

Estate?20243very

confident

about

overalldemand

forrealestate,withmanypointingto

Canada’simmigration-fueled

populationgrowth

asasourceoflong-term

strengthfortheindustry.But

meeting

thathadpreviouslyagreedto

pay.

One

intervieweesummedupmuchoftheindustrysentimentintheirdescriptionofthebusi-nessenvironmentnowandintheyearahead:“2023,

2024—thedemand

isanotherquestion,

asthevariouspressuresfacingthe

yearsofthegreatstaringcontest.”industry

hold

back

development

ofnewsupply

inmanyareasofthemarket.Thosehopingforbargainsto

emergeinthisenvironmentmaybe

disappointed.Intervieweestendedto

believethatopportu-nisticordistresseddealswouldremainhardto

findgiventhatmanysellersdonothaveto

transactifbidsarenotmeetingtheirexpectations.Evenso,someintervieweespointedtoexamplesofthetypes

ofsellerswhowilllikelyneed

to

transact,Still,eventhesebroadertrendsandtheoveralloutlookcallfornuance.Akeyissuetrackedinrecentyearsregardingretailandofficerealestateisagrowingdistinction—orbifurcation—ofassetswithinthevariousassetclasses.Thistrendcannowbeseenmovingbeyonddistinctionsbetween,forexample,classA

suchasownersofpoorlyperformingofficepropertiesandandBofficepropertiesto

extendto

otherareasofthemarket,suchastheindustrialandmultifamilysegments.Inessence,Canadianrealestatehasbecome

moredifferentiated,withinvestorsanddevelopersneedingto

be

moreselectiveandpaycloserattentionto

exactlyhowtheywillcreatevaluebyoptimiz-ingtheirassetsandportfolios,evenwhenpursuingbestbetsintheindustrialandmultifamilysectors.investmentfundsthatarewindingdownandmustliquidatetheirassets.A

Multitude

of

Challenges

for

Canadian

Real

EstateEvidenceofthechallengingenvironmentfordealscanalsobe

foundinPwC’s

2023

GlobalCEOSurvey.Accordingto

thesurvey,56

percentofrealestateCEOssaidtheyhadeitheralreadydelayeddealsorwereconsideringdoingsoinresponseto

economicchallengesandvolatility.ThiswassignificantlyhigherthanthefindingsforallCEOs,37percentofwhomhadeitherdelayeddealsorwereconsideringdoingso.Thisyear’sreport

exploreshowCanadiancompaniescanprepareforwhatisto

comein2024.Topicsdiscussedincludekeytrends,suchasmovesto

shoreupliquidityandthegrowthofdebtfunds,thatareemergingascompanieslookforwaysto

navigatemarketpressures.The

report

willalsolookathowindustryplayersareapproachingenvironmental,social,andgovernance(ESG)mattersandtheemergenceofnewtech-nologies,aswellasideasandsolutionsto

addressthegrowingandvery

serioushousingaffordabilityissuesinCanada.The

issuesfacingrealestatecompanies

haveonly

continued

togrowsincethen,

withindustry

playersexpecting

little

reliefoninterestratesastheylook

aheadto

2024.For

some

companies,theresulthasbeen

negativeleverageasborrowingratesexceedyields

on

theirinvestments.Thischallengeiscompounded

byuncertainty

about

whether

investorscan

count

on

assetvaluesgoingup.Instrugglingassetclassessuch

asoffices,

inter-vieweesnotedifficulties

securing

refinancingbecause

banksareunwillingto

renewmortgages

without

additionalequityinfusionsforsome

oftheseproperties.

“We’restarting

to

seecracks

thatwedidn’tsee

before,”saidone

interviewee,

citingthechallenges

facedbythosefeelingthebiggest

impactsofcurrentmarkettrends.“Everyone

iskeepingabravefaceon.”Costs,

Deals,

and

Capital

Markets:Emerging

Growth

Opportunities

versus

“the

Years

of

the

GreatStaring

Contest”“Money

isavailable,

but

tofewpeople

on

fewerthings.”O(jiān)ne

issue

raised

with

interviewees

this

yearwaswhether

theenvironment

ofprice

discovery

that

emerged

in

2023

would

con-tinue

in

2024.

This

wasa

very

notable

trend

in

last

year’s

reportthat

reflected

a

wide

gap

in

valuation

expectations

between

buy-ers

and

sellers

ofrealestateassets

asrising

interest

ratesbegantoincrease

financing

costs

and

put

a

damper

on

deal

activity.The

BankofCanada’smonetary

policiesarenottheonlyfactorsputtingadamperonCanadianrealestateactivity.InthewakeofworriesabouttheimpactsofbankfailuresintheUnitedStatesearlierin2023,

Canadianbankshavefacedtighterregulatoryrequirementsontheircapitalreserves.Thishasledto

morerestrictivelendingconditions,reducedavail-abilityofdebtfinancing,andevenhigherborrowingcostsforCanadianrealestatecompanies.Atatimewheninvestorscangetrelativelygood

risk-adjustedreturnselsewhere—by,forexample,puttingtheirmoneyintoguaranteedinvestmentcertificates—theattractionofrealestateasanassetclasshasdeclined,whichfurther

reducestheamountofcapitalavailable.Mostintervieweesbelievedoveralluncertainty

aboutassetpriceswouldremainakeyfactorinholdingbacktransac-tionsforthetimebeing,whilethosedealsthatdoproceedwilllikelybe

smalleraslargeinvestorspullbackfromthemarketandtheamountofcapitalavailableforrealestatedeclines.Intervieweesalsospokeofaddedbarriersto

closingdealsasmarketchallengesleadsomebuyersto

renegotiatepricesthey4Emerging

Trends

in

Real

Estate

2024?Chapter

1:

Emerging

Trends

in

Canadian

RealEstateEmerging

Trends

in

Real

Estate?202456Emerging

Trends

in

Real

Estate

2024?Chapter

1:

Emerging

Trends

in

Canadian

RealEstateProductivity

Challenges

Adding

to

Cost

and

Labor

PressuresFacing

the

Industryextentoverthenext

10

years.WhiletheEmerging

TrendsinReal

Estate

reports

havebeen

trackingtrendsinlaborand?skillsshortagesforsometime,thisyear’sinterviewsshowedagrowingconcernabouttworelatedissues:productivityandqualityofthework.Severalintervieweesnotedproductivityhasgenerallygonedownwhileinstancesofworkdefectshaveincreased,bothofwhichcausefurther

challengesandcostpressuresfordevelopmentprojects.InterestratesandcapitalavailabilityarenottheonlythingscreatingchallengesforCanadianrealestateplayers.Amidhighinflationandsupplychainsthat,insomecases,continuetofalter,costsforsomekeymaterialshavecontinuedto

rise.Whilesomeintervieweessaidcostincreasesforcertain

con-structionmaterialshadsoftened,manynotedtheycontinuetofacepressuresonthisfront.RecentresearchfromtheCanadianImperialBankofCommerce(CIBC)economicsteamsuggestslaborchallengeswillcontinueto

growgivenanagingconstructionworkforceandalowerretirementagecomparedwithotherareasoftheeconomy.The

CIBCreport,

releasedinJune2023,

estimatedatleast300,000

constructionworkerswillretireoverthenextdecade.The

report

alsohighlightedalaginbringinginnewworkersto

replaceretireesasthenumberofapprenticesfalls.AlthoughtheCanadiangovernmenthasmadechangestoincreasethenumberofskilledtradespeoplecomingto

Canadathroughtheimmigrationsystem,theCIBCreport

notedaneedto

domore.The

percentageofnewimmigrantswhoworkinconstructionisvery

lowandhasfallenduringthepastdecade,thereport

found.Furtherevidencecanbe

seeninrecentStatisticsCanadadataonconstructioncosts.On

ayear-over-yearbasis,residentialconstructioncostsfor11

Canadiancensusmetropolitanareaswereup7.5

percentinthesecondquarterof2023.

Fornon-residentialconstruction,theincreasewasslightlylower,at7percent.The

report

identifiedconcreteasoneofthekeymate-rialsincreasingcosts,whileskilledlaborratesandshortagesarecreatingadditionalchallengesfortheindustry.Labor

andskillsshortageswereclearlyontheagendaofrealestateexecutiveswhoparticipatedinPwC’s

2023

GlobalCEOSurvey.The

surveyfound61

percentofrealestateCEOsbelievelaborshortageswillaffectprofitabilityto

asignificantEmerging

Trends

in

Real

Estate?202478Emerging

Trends

in

Real

Estate

2024?Chapter

1:

Emerging

Trends

in

Canadian

RealEstateCreativity

Key

to

Pursuing

Growth

Opportunities

in

2024provisionsforsellersto

bridgebid-ask

spreadsaswellasven-dortake-backmortgagesto

managefinancinggapsandotherchallengesinclosingtransactions.The

resultofallthesepressuresisthatbothdevelopmentofandinvestmentinCanadianrealestatehavebecome

evenmorechallengingformanyinterviewees.Harnessing

Data,

Digital

Transformation,

and

TechnologyTrends

such

as

Generative

AIBut

inanincreasinglybifurcatedmarketinwhichagrowingdivideexistsbetweenassetswithmorepotentialto

delivervalueandthosewithchallengedprospects,companiesthatBesidesrepositioningtheirassetsandportfolios,realestatecompanieshaveanopportunity

to

createfurther

valueinancarefullyplantheirnext

movescanfindthewinningopportuni-tiesto

pursue.uncertainmarketbyacceleratinginvestmentsinboththeirdataandtechnologycapabilities.Whileintervieweestendedto

downplaytheneed

to

lookforthemostgroundbreakingproperty

technology(proptech)solutionsthisyear,therewasageneralfeelingthatfurther

digitizationremainsimportantinanindustrythathastendedto

lagothersectorsondigitaltransfor-mation.So

whatareintervieweesdoingto

navigatethisenvironment?When

askedwhattheirbestbetisfor2024,oneintervieweesaidtheirfavoredassetclassisliquidity.The

commentreflectsthesentimentsofmanyintervieweeswhosaidgeneratingliquiditywillbe

keybecausethestrongestplayerswillbe

inthebestpositionto

pursueemergingopportunisticdealsaswellasnavigateuncertainty

inthefuture.Opportunitiesto

dothisincludesellingoffnoncoreassetsandincreasingorclearinglinesofcredit.Intervieweesdescribedavarietyofwaystheyareembrac-ingdigitalsolutionsthatimprovebusinessperformancebyreducingcostsorgrowingrevenues.Some,

forexample,areautomatingfinancialreportingactivitiesto

savetime,whileothersareembracingconstructiontechnologiesandprocesschangesto

speed

upbuildingtimelinesandmanagelaborshortages.Intervieweesalsodescribedhowmachinelearningtoolsto

improveandpredictmaintenancerequirementsarehelpingthembettermanageenergysystems.Furtherinvest-mentindataanalyticscapabilitiesisalsokeyto

optimizingportfolio,investment,andforecastingdecisions;betterunder-standingcustomerandtenantneedsandpreferences;andenhancingperformanceandefficienciesacrossthebusiness.Forinvestors,variousformsofcommercialdebt,suchaspreferredequity

andmezzaninefinancing,areagrowingfocusgiventheopportunity

to

deliverbetterrisk-adjustedreturns.Thisemergingtrendofdebtfunds,whichmanyintervieweesidentifiedasofferingattractiveopportunitiesto

providecreditandliquidityto

otherindustryplayersstrugglingto

accesscapitalandmanagerisingfinancingcosts,isamoment-in-timeopportunity.“Debt

fundshaveapopularitycontestevery

10years,and2024istheiryear,”saidoneinterviewee.WhiledigitaladoptionfocusedonsolvingbusinessproblemsandimprovingoperationscontinuesinCanada’srealestatesector,theindustryisalsotakingnoticeofatechnologythathasbeen

makingwavessincelate2022:

generativeartificialintelligence.IntervieweesofferedavarietyofviewsonhowtheyareapproachinggenerativeAI,

withsomesayingitistooearlyto

assessitsimpactonrealestate,othersstartingto

assessusecases,andseveralintervieweeshavingalreadybegunexploringopportunitiesto

incorporateitindifferentways,suchasperforminginitialanalysisofinvestmentdecisionsandgen-eratingarchitecturaldrawingsanddesigns.Realestateplayersarealsocarefullyeyeingotherwaystocreatevalueduringtheseuncertaintimes,evenasdealmak-ingactivity,especiallyforlargertransactions,slows.Someinterviewees,forexample,arelookingto

strategicallyreposi-tiontheirportfoliosto

diversifytheirassetsbyfocusingonsecondary

marketsthatareseeinghighpopulationgrowthandofferingattractiveinvestmentanddevelopmentopportunities.Other

intervieweesareexploringopportunitiesinsubsectorsofkeyassetclasses,suchasstudentandseniorhousing,thatarebenefitingfromtrendssuchasgrowinginternationalenrollmentatCanadianpostsecondaryinstitutionsandtheoverallagingofCanada’spopulation.Anothergrowingtrendisconsideringincome-generatingassetswhenacquirerscanbuythembelowreplacementcostandwheretheyseeopportuni-tiesto

addvalue.Despitethedivergingapproaches,therewasafeelingamongmanyintervieweesandsurveyrespondentsthatgenerativeAIhasthepotentialbothto

significantlydisrupttherealestatebusinessandalsoto

createnewopportunitiesforcompa-niesthatembraceit.

“Somethingthatwouldnormallytakeaweek,

nowtakesthreehours,”oneintervieweesharedabouttheirexperienceusinggenerativeAI

toolsto

conductmarketresearchandanalysis.Whicheverstagethey’reatinexploringManyintervieweesalsostatedthatbeingagileandcreativeinstructuringdealswillbe

keyto

pursuingopportunitiesthatemergeintheyearahead.ThiscouldmeanincludingearnoutEmerging

Trends

in

Real

Estate?20249Based

on

Canadian

respondents

only.generativeAI,

giventhecomplexissuesitraises,companiesshouldkeepinmindthefollowingkeyconsiderations:●Responsible

AI:

GenerativeAI

createssomeuniquerisks,includingthepossibilityofwrongormisleadingoutputsthaterodetrustifdatasourcesarenotreliable,accurate,andunbiased.The

besttimeto

considerrisksisatthebegin-ningofthegenerativeAI

journeyto

ensurethattherightstrategy,controls,andresponsiblepracticesareinplacebeforemovingahead.●Carefully

assessing

the

use

cases:

Realestatecompanyleaders

can

expect

to

hear

about

arangeofapplicationsforgenerativeAI

to

theirbusinesses.Manywillofferattractivevaluepropositionsaimed

atincreasingrevenues,changingthebusinessmodel,

or

reducingcosts.

But

giventhatit

willnotbe

possibleto

pursueallpotentialopportunit