Capital Markets and Finance
Negative economic growth in the first two quarters of 2022, a volatile stock market, apartment dwellers stressed about inflation, and interest rate hikes from the Federal Reserve are enough to make developers and investors in the multifamily segment of commercial real estate feel more than a little anxious. Even so, industry experts are recommending that their clients stick to their long-term strategy and ride out the turmoil, rather than changing direction.
Thirty-eight states have passed legislation authorizing Commercial Property Assessed Clean Energy (C-PACE) financing to date. While C-PACE has been around for more than 20 years, the COVID-19 pandemic has accelerated its adoption.
Equity crowdfunding has emerged in recent years as a viable alternative to more traditional means of raising capital while also allowing members of the community to have a stake in the development. But it can also be used as a tool to generate wealth primarily for people from excluded and marginalized communities and groups, said panelists speaking at the 2022 ULI Spring Meeting.
While much of the focus on U.S. industrial is on large, single-tenant facilities, with big names like Amazon taking whole facilities. But multi-tenant industrial may offer diversification and risk reduction while helping small manufacturing firms grow over time. BKM Capital Partners spoke with Urban Land
Real estate economists predict solid performance by U.S. property markets over the next three years, according to the spring 2022 ULI Real Estate Economic Forecast. This is in spite of predictions of rising inflation and slower economic growth as a result of the Russia/Ukraine conflict and other developments. While the real estate–related components of the forecast are generally positive, contributing economists downgraded near-term economic growth and predicted significantly higher inflation and interest rates during the forecast period (2022–2024) compared with the prior forecast.
At the 2022 Spring Meeting in San Diego, panelists shared some of the opportunities they see in Mexico, while addressing some of the perceived challenges, both real and imagined.
A panel of capital markets experts opened the 2022 ULI Spring Meeting with a discussion of the direction of global markets and capital flows in an environment of rising interest rates as well as global uncertainty such as the ongoing conflict in Ukraine.
Out of the wreckage of the COVID-19 pandemic, Qualified Opportunity Zone (OZ) funds accelerated last year, with nearly $7 billion in new capital raised during the second half of 2021. Much of that money appears to be directed into new multifamily housing projects erected in high-growth markets
ULI MEMBER–ONLY CONTENT: With a growing risk of recession in the next 18 months, U.S. commercial real estate faces uncertainty but remains attractive to investors seeking yield and stability, two experts said during a recent ULI webinar.
Despite growing numbers of African Americans in its ranks, commercial real estate remains largely white and male. Today, African American business leaders point to remaining challenges, including access to capital. But they also underline the importance of the industry in broader conversations.