Despite stock and bond market volatility in late 2018 and increasing global trade and growth concerns, the April 2019 “ULI Real Estate Economic Forecast” was surprisingly consistent with the previous forecast, released in October 2018. Overall, expectations for 2019 and 2020 are flat to up, while the newly introduced forecast for 2021 calls for slower growth and returns. Moderating growth in gross domestic product (GDP) and jobs for 2019 to 2021 should lead to slower but still positive real estate demand and absorption. Expectations for the real estate market are modest, and the sector is relatively well prepared for slower economic growth, if it occurs.
This 44-unit residential rehab, financed by three mission-driven lenders, preserved workforce/affordable homes and reduced neighborhood crime—and meets nearly all its annual electric demand with on-site solar power.
The U.S. economy continues to perform strongly nearly a decade into the current recovery and China appears to be bouncing back from a slowdown, but weakness in Europe is a cause for concern, a prominent business journalist told an audience at the ULI Spring Meeting in Nashville. The U.S. GDP growth trend is still solid, said Kathleen Hays, global economics and policy editor for Bloomberg Television and Bloomberg Radio, who has covered the U.S. economy and the Federal Reserve for more than 30 years. “The bottom line is the economy is still growing and it’s still creating jobs,” Hays said.
The United States’s economic expansion is expected to continue over the next three years, with growth moderating by 2021, according to the 15th annual ULI Real Estate Economic Forecast covering 27 economic and real estate indicators.
Commercial property prices continued to rise across the largest gateway markets globally in 2018, according to data provided by RCA, but the pace of growth slowed from previous years. Cities in the Asia Pacific region, including Melbourne, Seoul, and Singapore, led the pack in the latest “RCA CPPI RCA’s Global Cities” report rankings.
Alternative lenders increased their market share in the commercial real estate debt sector in 2018, panelists said at a ULI North Texas event in March. That trend is likely to continue this year as competition among all types of debt providers heats up capital markets.
Nashville has been growing at a rate of nearly 100 residents per day since 2011, according to U.S. Census Bureau estimates. Emerging Trends in Real Estate® 2019, copublished by ULI and PwC, ranks Nashville as the number-five U.S. market for overall real estate prospects. For those still looking for deals in Nashville, the following are six important things to know about capital markets and the local lending environment.
While many real estate investors and lenders seem to be holding their breath in anticipation of the next recession, there are nonetheless some promising new opportunities on the horizon. That was the collective opinion of four lenders who served as panelists at the recent 2019 ULI Carolinas Meeting in Raleigh.
Panelists at the recent ULI Europe Conference talked about which sectors are the most attractive to investors in the current market dynamic. But with pricing fairly tight, investors are keeping an eye out for disruptive business models such as coworking or drone delivery.
The latest Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey shows that despite the recent uncertainty in the stock market, increasing cap rates, and slower economic growth, developers’ views on California commercial real estate markets have not changed much from six months ago. Following the trends of the past two years, industrial space remains hot despite the economy’s fluctuations; multifamily housing remains strong in most markets; office has reached its peak; and retail markets continue to struggle.