In addition to the gyrations of the stock market, the rate on 10-year U.S. Treasury notes surged past the 3 percent level into late September and early October. And yet, even with the turmoil in the financial markets, cap rates were unchanged to down from a year earlier in the fourth quarter.
The clock is still ticking on real estate markets. “We are right at the end of a real estate cycle,” says Bowen H. “Buzz” McCoy, who joined the 25th annual ULI/McCoy Symposium on Real Estate Finance, held in December in New York City. Though the closed-door session is strictly confidential, some attendees shared their takeaways.
Speaking at the 2018 ULI China Mainland Winter Meeting in Shanghai, Steven Zhang, chief economist and head of research at Morgan Stanley Huaxin Securities, outlined an optimistic economic outlook for China and other emerging economies. However, he said the economic and political upheaval that characterized 2018 would continue next year.
With strong consumer confidence, ongoing economic growth, and low unemployment, there are few signs of an imminent recession in recent U.S. economic data—but real estate experts speaking at a recent industry event in New York City said they want to be prepared. Speakers discussed their plans to manage shrinking investment yields and the risk of investing late in the real estate cycle.
With rising demand for small cohousing units, developers in Asia embrace the for-rent market.
Immigration-based investment programs are drawing investors and high-net-worth individuals from South and Central America to countries such as Portugal, Spain, and Cyprus, experts said during a panel discussion at the ULI Latin America Conference, held in Miami during September. U.S. tax reforms are also leading potential investors to take another look at markets in Nevada and Florida, they said.
A new online Public Infrastructure Decision Tree provides guidance to state and local government officials.
The presence of a talented workforce and economic diversity are the main characteristics of this year’s top cities in the latest version of the ULI/PwC report.
Crowdfunding has captured the imagination—and money—of investors throughout the United States. While it is used for everything from charitable campaigns to launching startup businesses or paying legal fees, commercial real estate may be the largest online investment opportunity for crowdfunding to date, according to a panel at the 2018 ULI Fall Meeting in Boston.
A panel discussion at the recent ULI Europe Real Estate Forum in Dublin examined how investors are driving demand for and managing mixed-use districts and buildings. Speakers said that rather than many small and varied projects, they have concentrated on fewer and larger high-return projects.