A glut of liquidity in local capital markets is making life difficult for domestic and foreign investors alike.
Detroit’s bankruptcy marked a turn in the fate of the city. Along with the economic downfall came rare opportunities for investment, creation, and collaboration.
Where are capital markets—and specific real estate sectors—headed? In a novel ULI panel at the ULI Spring Meeting in Detroit, 11 of the Institute’s top leaders revealed their expectations through instant polls on ten market questions.
The new ULI Real Estate Economic Forecast is taking a more bullish view on the U.S. economy—at least for the remainder of this year. As compared with the fall survey, key indicators such as gross domestic product (GDP) growth, jobs, and the Consumer Property Price Index (CPPI) all trended higher. But that boost may be short lived with growth tapering in 2019 and 2020.
At a recent event hosted by ULI Washington, panelists discussed how U.S. and Chinese companies are continuing to work together. After record levels of U.S. investment from China in 2016, new controls on capital outflow and investors’ changing attitudes have slowed inflows, while domestic development in China has also shifted.
Strong economic fundamentals, a favorable regulatory environment, and plenty of capital to deploy bode well for real estate investments, acquisitions, and development in 2018.
Understanding how and why groundbreaking multifamily communities are securing the financial commitments required to become reality is an important first step in appreciating how Detroit’s economic and development landscape evolves throughout the course of an accelerating growth cycle.
Whether the current economic cycle has peaked was a constant question at the 2018 ULI Europe Conference in Berlin. In the discussions at the event in late January, real estate and investment experts were feeling bullish on Asia, generally enthusiastic about continental Europe, while cautious about Brexit.
Commercial real estate investors are keeping calm and carrying on, even though they are uncertain about what is coming next for fundamental elements affecting their business, such as the federal tax code and interest rate policy. “It makes it difficult to plan. . . . You don’t know what the federal budget is going to be. You don’t know what the Federal Reserve is going to be,” said Bowen H. “Buzz” McCoy, who participated in the 24th annual ULI/McCoy Symposium on Real Estate Finance, held in December in New York City.
Commercial real estate lending markets remained on the upswing in Q3 2017 with rising equity prices, limited volatility, and tightening spreads, according to the latest research from CBRE.