A new update from ULI to the Reshaping Retail report, which was published earlier this year prior to the coronavirus pandemic taking hold across Europe, forecasts that the impact of COVID-19 will accelerate the restructuring of the retail property sector, particularly in the United Kingdom. The need for stable cash flows has been identified as the main overall trigger point needed to spur the investment market.
The latest “Real Estate Economic Forecast,” produced by the ULI Center for Capital Markets and Real Estate, points to a U.S. economy that has likely already hit bottom, with growth resuming in the second half of the year that will soften some of the blow. Panelists on a ULI webinar said that this outlook comes with crossed fingers due to uncertainty related to the path of the virus and the time it takes to develop an effective vaccine.
Many countries in Asia have successfully mitigated the spread of COVID-19 through a range of strategies that include universal mask use, testing, sophisticated technology for contact tracing, and strict government quarantine and cleaning protocols, according to leading real estate professionals participating in a recent ULI webinar. The participants described impacts on their real estate businesses, and how the real estate industry has been enlisted in the fight against the coronavirus.
According to survey data from the latest ULI Real Estate Economic Forecast, the current economic recession will be short-lived in the United States, with above-average gross domestic product growth returning in 2021 and 2022. Second, the impact on real estate market conditions and values will be relatively modest and much less severe than the impact experienced during the global financial crisis, with some exceptions by sector.
Real estate investment in the Asia Pacific region has been on a downward trend since 2019, and market uncertainty brought about by the COVID-19 pandemic has exacerbated the situation, said speakers at a recent ULI Singapore event held virtually.
Insights into working with tenants and lenders to weather the coronavirus crisis were shared by a diverse group of real estate professionals—a niche developer and investor specializing in space for life science companies, a mixed-use developer focused primarily on downtown revitalization and development, an affordable housing developer, and a real estate debt and equity adviser—during an April 14 webinar hosted by ULI’s Center for Capital Markets and Real Estate.
A timely report by ULI Europe sets out the potential triggers for the required restructuring of Europe’s retail real estate sector.
With the challenges of technology, mobility, sustainability, and social inclusion, the public and private sectors are working together successfully to build thriving places. Reinventing underused urban spaces to prioritize people is the way. A panel at ULI Europe’s 2020 conference in Amsterdam, moderated by Marilyn Jordan Taylor, professor of architecture and urban design at the University of Pennsylvania and a former ULI global chair, discussed four successful projects around the globe.
Interest rates remain low and real estate prices are hitting record highs in many countries while global economic growth is slowing. At the ULI Europe Conference earlier this month in Amsterdam, experts shared their takes on the global economic outlook and what developers and investors should watch for.
The U.S. Federal Reserve’s interest rate reductions, combined with continued economic growth, supported strong commercial real estate lending activity in the fourth quarter of 2019, according to the latest research from CBRE. The CBRE Lending Momentum Index, which tracks the pace of commercial loan closings in the United States, reached a value of 263 in December 2019—virtually unchanged from its third-quarter 2019 close and up 4.2 percent from a year earlier.