Uncertainty around asset prices likely to slow transactions.

ULI Asia Pacific report builds the business case.

Despite volatility and uncertainty, real estate investors are finding ways to make deals. A new consensus is forming around a “reset” in the economy and commercial real estate, according to the 2024 Emerging Trends in Real Estate forecast produced by PwC and ULI. “There’s this sentiment of guarded optimism,” says Bill Staffieri, partner with PwC. He presented the forecast to hundreds of real estate experts at the Real Estate Outlook 2024, hosted in late January in New York City by ULI New York.

Confidential format allows for frank conversations to help real estate leaders understand market trends.

What ULI members need to know about the United States’ largest infrastructure investment in a generation.

Despite the challenges in finding funding, many experts agree that the benefits ofhaving diverse developers in communities of color and across the entire real estate landscape is critical.

After the chaos and uncertainty of the last year, commercial real estate experts are finally getting a clearer idea of what the real value of real estate should be, according to attendees of the recent ULI McCoy Syposium. That starts with a growing consensus that interest rates are not likely to return to the rock-bottom lows that persisted for much of the last 15 years.

Commercial real estate investors are hitting refresh on stodgy investment strategies and sending more capital flowing into alternative property sectors. Portfolio managers that were once laser-focused on traditional property sectors are expanding strategies to include bigger allocations beyond the typical mix of office, retail, industrial, and multifamily assets.

Commercial real estate already faces many challenges because of an unprecedented rise in interest rates, tightening credit capacity, uncertainty in the office market, a $2.6 trillion wave of maturing debt over the next four years, and overall economic anxiety. Adding to this complexity, financial regulators are pushing for a significant increase in capital requirements—by as much as 20 percent—for the nation’s largest banks via the Basel III “endgame.”

In a market accustomed to abundant supplies of cheap debt, the real estate landscape in the Asia Pacific region is undergoing a significant transformation following the series of rapid interest rate hikes initiated by the U.S. Federal Reserve since mid-2022, according to the 18th edition of the Emerging Trends in Real Estate® Asia Pacific 2024. In the absence of asset revaluations, far fewer deals are now able to deliver accretive returns, prompting large global investors to retreat to the sidelines as they wait for markets to reset