Property Types
Hotels and Resorts
It’s tough to view a strong economy as bad news. Yet a firmly positive economic projection in ULI’s Real Estate Economic Forecast does not bode well for commercial real estate participants who are hoping for relief in rate cuts from the U.S. Federal Reserve.
These 10 hotels embody environmental sensitivity plus energy and water efficiency.
Two years after the start of the global pandemic, the outlook for the U.S. hotel industry is decidedly positive. STR, a CoStar Group company and a global leader in hospitality analytics, continues to report ever-improving metrics in the United States. The prospects for the sector are embodied in six themes.
Industrial
Once overlooked as little more than open-air spaces for trailer parking, industrial outdoor storage (IOS) sites are emerging as a promising niche for their increasingly significant role in the e-commerce and logistics sectors and their potential to earn strong returns for investors.
Demand for industrial space has pushed vacancies to historically low levels. But the high tide may no longer be lifting all boats. A surge in new supply along with a growing appetite for more modern facilities is putting more pressure on the sector’s aging building stock. Legacy buildings are having a tougher time keeping up with the changing demands of today’s space users.
A confluence of economic and geopolitical trends is changing global supply chains and driving increased demand for industrial and logistics real estate in Southeast Asia, according to industry leaders at ULI Asia Pacific’s REImagine conference.
Mixed-Use
A redevelopment plan for a Seattle site presented by a team of Georgia Institute of Technology students has taken top honors in the 22nd annual ULI/Gerald D. Hines Student Urban Design Competition. The competition was created with a generous endowment from long-time ULI leader Gerald D. Hines, founder of the Hines real estate organization.
A team from ESSEC Business School in France has been named the winner in this year’s prestigious ULI Hines Student Competition – Europe. The results were announced by ULI and Hines, the global real estate investor, developer, and property manager, following the final of the fifth annual pan-European competition for integrated and multidisciplinary urban regeneration.
Experts say the real estate market in our cities is responding to the dramatic changes caused by COVID with a “flight to quality.” This headline suggests optimism that a safe harbor still exists out there as does the fear that we all need to act fast and run (for our lives) before things get bad. It reflects a winnowing to the essential characteristics that can ensure the best overall return and insulate us from the changing winds in the economy.
Multifamily
Under the leadership of Chief Investment Officer Wes Fuller, Greystar, a vertically integrated real estate firm that owns, operates, and develops multifamily, student, and senior housing, began investing in international markets in 2013, including in Europe, Asia, and South America. The company’s robust institutional investment management platform now has a global presence in 249 markets.
Developers of middle-income projects can’t use subsidy programs such as federal low-income housing tax credits (LIHTCs) to finance their plans. Middle-income developments also often don’t earn enough in rent to support conventional construction loans or attract equity investors.
Eight years ago, the landmark Paris Agreement kicked off a worldwide campaign to reduce carbon emissions. The targets set were big: slash emissions by 45 percent by 2030 and be net zero by 2050. So far, the world is not making enough progress on those lofty goals, and the progress that has been made has been very unevenly distributed. Experts from major real estate firms, including Boston Properties, CBRE, and Community Preservation Corporation, drove home the net zero transition’s importance during a panel discussion at the 2024 ULI Spring Meeting in New York City. They talked about the costs of getting to net zero, what lenders and owners are doing to get there, and the risk of not addressing climate change.
Office
Despite headwinds, debt funds continue to fill the void in commercial real estate financing.
Real estate developers across the United States and around the world are under pressure to cut the amount of carbon their activities put into the atmosphere.
What does it take to secure debt in today’s challenging commercial real estate environment? It all boils down to experience, relationships, and a lot of creativity. That’s according to an expert panel speaking this morning at ULI’s spring meeting at the New York Hilton Midtown. The panel is the first in a series of three, which will include Raising Equity (10 a.m. Wednesday) and Borrowers’ Experiences—Recent Success Stories (10 a.m. Thursday).
Residental
A tsunami of emptying houses of worship—up to 100,000, according to one religious source—is washing across America. Developing intelligent reuses and redevelopments for these properties will make the difference between a community flourishing and struggling. Housing advocates view underused faith properties as natural sites to develop projects that help close the great national gap on affordable housing.
ULI Asia Pacific report builds the business case.
Daryl Fairweather, chief economist for real estate brokerage Redfin, will be presenting at the upcoming 2024 ULI Housing Opportunity Conference in Austin. A classically trained economist with both a Ph.D. and a master’s degree in economics from the University of Chicago, Fairweather previously worked at Amazon and the Federal Reserve Bank of Boston.
Retail
As the recent cultural and real estate realignment called “The Great Mall Sorting” continues, A-plus malls are thriving, while the B and C properties are gradually being repurposed, reused, and completely rethought, according to architect Sean Slater, senior principal at the architectural firm RDC in San Diego.
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Neglected yet historic department store remade into a vibrant destination anchored by buzzy health food grocer Erewhon.
Companies including Macy’s, Nordstrom, Kohl’s, and IKEA are rolling out small-format stores around the country, often in suburban areas, as they try other ways to connect with their customers.
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