Thank you to @ULI for a wonderful #FallMeeting packed with valuable information!
Read our team’s key takeaways👇:
“Great leaders have patience. They have an infinite mindset. It’s not about winning the game, it’s about advancing the cause.”
—Simon Sinek
“Scared money doesn’t make money.” Consensus says the time has come for opportunities.
Senior Housing has opportune fundamentals. By 2030, all Baby Boomers will be over 65; consistently outpacing unit supply growth.
Say it with me: Data Centers.
Investor interest is everywhere in this niche. “Lots of interest around alternates.”
Capital raising is “much better.”Investors began moving ahead of the market back in May. But stay on your toes: With the 10-year on the rise, “it’s gonna be choppy.”
VERY optimistic about retail! #ShoppingAlwaysWins
—Nearly no new builds since the Great Recession
—All-time highest occupancy
—Resilient consumers driving sales
—WFH driving daytime traffic
—Retailers understand the importance of brick and mortar
Gooooo, Dallas!
“The absorption in #Dallas has been unbelievable.”
Investors are also eyeing Denver, Seattle, Boston.
Affordability. The severity of the problem cannot be understated. ULI is working hard to seek and support innovative solutions via its new Homeless To Housed (H2H) initiative.
Downtowns: Investment will arrive inch by inch, neighborhood by neighborhood. 60% of people spending time in vibrant DT areas are visitors. Crime and security must be the top focus.
Office: Vacancy problems started prior to COVID and are now at peak. “In every cycle, there’s a flight to quality. Lower-quality assets must re-think who they are.” 40% of pre-pandemic office leases have not yet rolled, so there’s more to work out. Some banks are partnering with parts of the government to get office deals done. Financially, “the capital stack is now 20 items long.”
Art is the New Anchor
In #CommercialRealEstate projects nationwide, Culture in all its forms is proving to be a successful anchor via monetary, social, and equity benefits. This is not limited to visual art. Music, theatre, water-and-light shows and experiences, as well as culinary arts are proving their bottom-line value.
Economic Forecast:
“We’ve already had a soft landing.” Corporate earnings are at all-time highs. That said, “Commercial Real Estate is not driven by corporate profits; we’re driven by people and jobs.” Labor force growth has historically been driven by immigration, so analysts are watching this carefully. The market expects two more .25 bp cuts before the end of the year. Still, the 10-year rising could make things tricky. Consensus was “it will be slow and steady.”
Locally: Chinatown in #LasVegas is enjoying a revival via creative community engagement. (Thank you @WomensDevelopmentCollaborative for the great event!) AAPI is the fastest-growing population in the region. The Spring Mountain Road project supports authentic mom-and-pop businesses creating a diversity-fueled destination with some of the best food in town. 🥡🥢 How to get these major redevelopments done? “Structuring matters.”
Deconstruction is back:
Construction & Design facilities bury and burn $136 Billion in lumber each year. By identifying the reuse potential of everything in the building early on, deconstruction could be a profitable solution.
Learn more at ULI.org
#CommercialRealEstatePR #UrbanLandInstitute #TrendsInRealEstate #TheSmartAgency
