Global growth in e-commerce spurred by the coronavirus pandemic is boosting investor interest in a “new economy” asset class dominated by data centers and logistics facilities, speakers said in early September at a session during the ULI Asia Pacific REImagine conference.
ULI MEMBER–ONLY CONTENT: Every major global economy except Mainland China will see a decline in growth this year due to the coronavirus pandemic, said Janet Henry, chief global economist at HSBC, as part of the ULI’s REImagine event.
ULI Los Angeles, celebrating the 20th year of its Urban Marketplace program, has launched a series of five online events around the theme of “A Reflection on Progress and a Vision for the Future,” with the first held in early September. The principal session consisted of a conversation between Michael Banner, president and CEO of Los Angeles LDC, and Miguel Pastor, director of the University of Southern California Program for Environmental and Regional Equity, focusing on helping disadvantaged neighborhoods access capital and positive signs for the future.
ULI MEMBER–ONLY CONTENT: The global COVID-19 pandemic promises to accelerate the adoption of property technology (proptech), which sits at the intersection of the roughly $230 trillion global property sector and the nearly $3.4 trillion global technology sector, speakers said in early September during the virtual ULI Asia Pacific REimagine conference.
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 COVID-19 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.