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Despite headwinds, debt funds continue to fill the void in commercial real estate financing.

A team from ESSEC Business School in France has been named the winner in this year’s prestigious ULI Hines Student Competition – Europe. The results were announced by the Urban Land Institute (ULI) and Hines, the global real estate investor, developer, and property manager, following the final of the fifth annual pan-European competition for integrated and multidisciplinary urban regeneration.

In the first quarter of the year, we saw a palatable increase in financing requests from a variety of sponsors providing some optimism that real estate activity may be picking up. And while very few could be categorized as “good news” transactions, the vast majority were clearly indicative of what we are seeing in the market.

The implications of climate change are becoming hard to ignore. The frequency of natural disasters has increased significantly in recent years, with the United States experiencing an average cost of $18 billion–plus from climate disasters per year. As these kinds of events have grown more common, calculating climate risk has become a hugely important task for commercial property owners. The topic was the main theme during a panel discussion at the April 2024 Resilience Summit in New York City.

Developers of middle-income projects can’t use subsidy programs such as federal low-income housing tax credits (LIHTCs) to finance their plans. Middle-income developments also often don’t earn enough in rent to support conventional construction loans or attract equity investors.

Eight years ago, the landmark Paris Agreement kicked off a worldwide campaign to reduce carbon emissions. The targets set were big: slash emissions by 45 percent by 2030 and be net zero by 2050. So far, the world is not making enough progress on those lofty goals, and the progress that has been made has been very unevenly distributed. Experts from major real estate firms, including Boston Properties, CBRE, and Community Preservation Corporation, drove home the net zero transition’s importance during a panel discussion at the 2024 ULI Spring Meeting in New York City. They talked about the costs of getting to net zero, what lenders and owners are doing to get there, and the risk of not addressing climate change.

A new global report from ULI and LaSalle Investment Management (LaSalle), a leading real estate investment management firm, offers a new framework to help the real estate industry act on climate risk disclosure data. Across the real estate industry, practitioners understand physical climate risk to assets and portfolios poses a financial risk, but there are still many challenges to acting on the data being collected and disclosed.

Over the last decade, real estate leaders have started to wrap the industry’s arms around what climate change—and the energy transition associated with it—means for the industry. Real estate companies with net zero commitments now account for nearly $1 trillion in market capitalization—well over half of the market cap of all publicly traded REITs. But setting targets is just the start. We’re learning a lot from those leaders moving beyond commitments to the hard work of transforming physical assets.

Women in leadership roles was the theme of a discussion during the 2024 ULI Spring Meeting in New York City. Kelly Nagel, who was recently named Head of Residential at EDENS, an owner and operator of mixed-use properties nationwide, hosted a fireside chat with Nancy Lashine, founder and managing partner at Park Madison Partners, a New York-based boutique advisory and capital-raising firm.

This is the second installment of Urban Land’s coverage of a special three-part capital markets series held at ULI’s Spring Meeting in New York City (March 9-11; you can read coverage of Part 1 here).

It’s tough to view a strong economy as bad news. Yet a firmly positive economic projection in ULI’s Real Estate Economic Forecast does not bode well for commercial real estate participants who are hoping for relief in rate cuts from the U.S. Federal Reserve.

Real estate developers across the United States and around the world are under pressure to cut the amount of carbon their activities put into the atmosphere.

In a general session at the 2024 ULI Spring Meeting, former U.S. Secretary of State Hillary Rodham Clinton spoke with Ralph Rosenberg, a partner and global head of real estate with KKR. Clinton, who now teaches at Columbia University, focused her remarks on what she said are the three major conflicts affecting the global economy.

What does it take to secure debt in today’s challenging commercial real estate environment? It all boils down to experience, relationships, and a lot of creativity. That’s according to an expert panel speaking this morning at ULI’s spring meeting at the New York Hilton Midtown. The panel is the first in a series of three, which will include Raising Equity (10 a.m. Wednesday) and Borrowers’ Experiences—Recent Success Stories (10 a.m. Thursday).

Experts say the real estate market in our cities is responding to the dramatic changes caused by COVID with a “flight to quality.” This headline suggests optimism that a safe harbor still exists out there as does the fear that we all need to act fast and run (for our lives) before things get bad. It reflects a winnowing to the essential characteristics that can ensure the best overall return and insulate us from the changing winds in the economy.

As global momentum builds for climate action, federal, state, and local governments have introduced building-sector requirements covering everything from energy and water use to green building certifications to climate resilience. The real estate industry is addressing the climate crisis through actions like selecting lower-carbon materials, setting portfolio-wide net zero targets, and increasing procurement of renewable energy. However, ESG teams are spending more of their time on compliance and reporting as regulations expand, which reduces their capacity for implementing projects and reducing carbon.

The Manhattan office market is beginning to make a comeback, but much has changed since the start of the COVID-19 pandemic. The persistence of hybrid and remote work have changed the equation for commercial rentals, both in terms of landlord-tenant relationships and the quality of office product on offer.

Nationwide, the urgent need for more affordable housing has become crystal clear. The United States is grappling with a housing crisis, and building affordable housing has become increasingly difficult. Developers face high construction costs, ongoing supply chain issues, and skyrocketing prices for land, especially in some of the country’s largest cities. Even when a project comes together and gets financing, the process to obtain permitting, gain city approvals, and actually construct a project can take years.

City is actively working to make its neighborhoods safer and more resilient to extreme rain events

When cities decline, they can take decades to recover, if they ever do. McKinsey’s research suggests that many U.S. cities could experience a steady downward trajectory without effective intervention. We find that some cities may take years to bounce back from the impact of the COVID-19 pandemic on real estate and the economy. But such a doom loop is far from inevitable; there are many examples of success that we can learn from. Indeed, while U.S. cities will differ from what they were before COVID-19, this is also an opportunity to shape them into more vibrant and equitable places.

One of New York City’s busiest corridors is set for one of its biggest transformations in years. The area around Manhattan’s Penn Station has long been considered a sore spot for the city, as top-tier retail stores moved to more flourishing areas and local buildings became outdated. But now, with a billion-dollar plan by a New York state agency underway to revitalize public transit infrastructure in and around Penn Station, there is serious momentum for the Midtown neighborhood, which has stalled in growth as surrounding neighborhoods have evolved.

Tattooed, tanned, and tousled, 48-year-old Stefan Quinn Soloviev looks like an athletic nerd who stepped out of a Mad Max film, but don’t let his appearance fool you. Soloviev is one of the largest landowners in the United States—number 21, according to Landreport.com—with a portfolio that includes some of Manhattan’s most coveted properties.

Federal funding opportunities through the Bipartisan Infrastructure Law (BIL) and Inflation Reduction Act (IRA) are supporting essential investments in green and resilient infrastructure, with the potential to create more livable communities while also supporting successful real estate developments through enhanced aesthetics, improved building user experiences, and operational efficiencies.

Since 2017, the ULI Health Leaders Network has served as a platform for cross-sector professionals looking to grow their leadership skills, make meaningful connections, and drive progress in health and social equity. Welcoming thirty new members to the Network, Cohort 7 joins a global community of practice of over 200 professionals. Spanning 24 cities and 6 different countries, the new cohort represents a diverse range of real estate, land use, design, policy, and public health professionals. To learn more about the individual Cohort 7 members, explore their profiles and biographies here.

Construction codes are pushing new buildings toward net zero, but roughly 80 percent of the expected 2050 building stock already exists today and needs to undertake major upgrades to meet emissions limits in line with the Paris Agreement. To address this issue, cities and states across the U.S. have started to limit emissions from existing buildings with regulations known as Building Performance Standards (BPS).

Georgetown University’s one-year master’s program in Global Real Assets offers a finance-oriented degree that integrates real estate, infrastructure, and sustainability.

How we use words is important. Words can describe both racial inequities and the efforts to remedy them. As the real estate industry continues the work to dismantle systemic racism, it’s critical to be intentional about language.

The natural reaction to hearing that a product or material has been made with the assistance of modern slavery is to flinch in horror and perhaps disbelief. Unfortunately, the construction industry is ranked second—just behind domestic service—as a problematic industry in terms of its risk of relying on forced labor, according to the 2022 Global Estimates of Modern Slavery, Forced Labour and Forced Marriage report from the International Labour Organization in Geneva.

Since the publication of Building Small: A Toolkit for Real Estate Entrepreneurs, Civic Leaders, and Great Communities in 2021, author and developer Jim Heid has continued to grow the building Small movement. Last year, he launched a free-yet-private online platform that serves as an interactive network where like minds solve the big problems of building Small.

Since the retirement of Urban Land Institute’s Global CEO Ron Pressman in October 2023, the search for a visionary global leader has taken center stage. As the Institute charts its course in shaping the built environment for transformative impact within communities worldwide, finding the right leader is paramount.