A new report by ULI and Heitman, a global real estate investment management firm, indicates that environmental change is prompting the migration of people and businesses, movements that may trigger significant shifts in demand for real estate. Just as investors are being forced to recognize and price the physical risks associated with climate change—wildfires, hurricanes, excessive heat—they need to integrate climate migration risk into their underwriting models.

Peter Ballon, global head of real estate for CPPIB Investments, kicked off the 2021 ULI Virtual Spring Meeting with a keynote panel of industry leaders from Europe, the Asia Pacific region, and the Americas discussing global capital flows.

As part of the 2021 ULI Virtual Europe Conference in February, high-level ULI members from across the global finance and investment sector gathered virtually to discuss capital flows, real estate market dynamics, and debt and equity markets. Among the trends discussed were an acceleration of deglobalization, shifting from “just in time” to “just in case” deliveries, and more interest in the hyperlocal, also characterized as “love thy neighborhood.”

A study by the U.S. Federal Reserve Bank of Philadelphia showed that tenants who lost jobs during the COVID-19 pandemic may have already amassed $11 billion in rental arrears. Procedures for evictions and foreclosures may be failing the most vulnerable tenants and landlords.

The climate plan outlined by U.S. President-elect Joe Biden’s administration is significant in that it reaffirms a commitment to addressing climate challenges, said panelists participating in a recent webinar hosted by the ULI Center for Sustainability and Economic Performance. The plan would also provide considerable resources to support and propel innovation throughout the real estate industry in key areas such as energy efficiency, carbon emission mitigation, and climate change resilience.

In a new survey conducted by ULI and EY, real estate professionals said that they overwhelmingly expect increased remote working, including more working from home (96 percent), more remote working away from the home (72 percent), and more use of satellite offices at the edge of cities (67 percent).

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While the COVID-19 pandemic and ensuing recession have spurred ULI members to act quickly to adjust their business practices, a significant number of respondents to an Urban Landreader poll say they expect the real estate business to do better during this recession than during the Great Recession of 2007–2009. And a majority see opportunities for growth.

SPONSORED POST:Commercial real estate finance participants navigated an unprecedented market environment in the early months of COVID-19, with many traditional lenders and capital markets players temporarily sidelined. As we near the end of a tumultuous year, many observers are beginning to see signs of cautious optimism. KKR’s head of Real Estate Credit answers a few questions about how this time is (or is not) different and his outlook on the road ahead.

The U.S. Federal Reserve’s interest rate reductions, combined with continued economic growth, supported strong commercial real estate lending activity in the fourth quarter of 2019, according to the latest research from CBRE. The CBRE Lending Momentum Index, which tracks the pace of commercial loan closings in the United States, reached a value of 263 in December 2019—virtually unchanged from its third-quarter 2019 close and up 4.2 percent from a year earlier.