{"id":1004353901,"date":"2019-09-20T05:22:57","date_gmt":"2019-09-20T13:22:57","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004353901"},"modified":"2019-09-20T05:22:57","modified_gmt":"2019-09-20T13:22:57","slug":"emerging-trends-2020-stay-alert-to-these-changes","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/emerging-trends-2020-stay-alert-to-these-changes\/","title":{"rendered":"Emerging Trends 2020: Stay Alert to These Changes"},"content":{"rendered":"
\"\"<\/a>

Andrew Warren, Director, Real Estate Research, PWC.<\/p><\/div>\n

The Urban Land Institute\u2019s and PwC\u2019s Emerging Trends 2020<\/a> report finds real estate will continue to be a favored asset class even as the economy readies for a \u201cdownshift<\/em>\u201d and other uncertainties loom. But it warns against complacency as the industry prepares for a period of sustained moderate growth.<\/p>\n

\u201cTwo percent GDP growth nationally is not GDP everywhere<\/em>,\u201d said Andrew Warren, director of Real Estate Research at PwC, during the report\u2019s release at the ULI fall meeting in Washington, D.C. The annual report is based on interviews and survey responses of 2,200-plus real estate professionals.<\/p>\n

\n

READ ALSO<\/strong>: Energy Choices, Climate Change and Risk Management<\/a><\/p>\n

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The theme of this year\u2019s report was \u201cShifting Focus to the Decade Ahead<\/em>\u201d and it calls for the industry to adapt to change and to adjust growth strategies. Some of these changes are \u201csubtle<\/em>,\u201d according to the report, but nevertheless require attention.<\/p>\n

Other key trends highlighted by the report are: the tendency and need to avoid deploying capital \u201cjust because it is available<\/em>\u201d; a broadening of geographic market specialization strategies and an emphasis on skill specialization teams; the urgency of housing availability and affordability; the demand for real estate that promotes community; the urbanization of the suburbs; the positive impact of active Baby Boomers on housing demand and workplaces; growing emphasis on ESG (environmental, social and governance) on the part of investors; continued disruption of technology in real estate management and properties themselves; and increased interest in states and localities that are solving their own infrastructure problems rather than waiting for the federal government to act.<\/p>\n

Live Commentary<\/strong><\/h2>\n

After the report\u2019s findings were presented a panel of industry experts offered their views on the market\u2019s outlook. The main topic of discussion amongst the panelists was the economy.<\/p>\n

\u201cThe risks of recession is rising<\/em>,\u201d said economist Ken Rosen, citing weak manufacturing, sluggish home sales, trade wars, a potential oil strike and the unwinding of the tech bubble. \u201cNot now, but over the next year, risk of recession is up 50 percent.<\/em>\u201d<\/p>\n

Owen Thomas, ULI chairman and CEO of Boston Properties, had a more cautious view of recession prospects. \u201cI think we\u2019re just in a slower growth, less volatile world,<\/em>\u201d he said, citing lower populations globally. He added: \u201cThe world will continue to be cyclical, but every other time we\u2019ve gone through cycles like this\u2014and I\u2019ve been through a few in my career\u2014we\u2019ve never had a situation where the real estate market is so strong, and the Fed is reducing rates<\/em>.\u201d<\/p>\n

Market Spotlights<\/strong><\/h2>\n

Emerging Trends also includes \u201cMarkets to Watch<\/em>.\u201d The report\u2019s top 10 markets for Overall Real estate Prospects this year were: Austin, Texas; Raleigh\/Durham, N.C.; Nashville, Tenn.; Charlotte, N.C.; Boston; Dallas\/Ft. Worth; Orlando, Fla.; Atlanta; Los Angeles; Seattle and Tampa\/St. Petersburg, Fla. From 2016 to 2018, these markets accounted for 25.8 percent of total transaction value and they have posted 26 percent of aggregate investment so far in 2019.<\/p>\n

The next 10, accounting for 14.6 percent of total transaction volume from 2016 to 2018 and 15.3 percent so far this year, were: San Francisco; San Jose, Calif.; Washington, D.C.-Northern Va.; New York-Brooklyn; Indianapolis; Denver; Orange County, Calif.; Charleston, S.C.; and Portland, Ore.<\/p>\n

A few new categories of Markets to Watch were added this year. \u201cMajor Capital Magnets<\/em>\u201d featured Manhattan, Chicago, Inland Empire in California, Northern New Jersey, Houston, Phoenix, San Diego, Oakland\/East Bay in California, and Miami. \u201cStalwarts, Surprises and Determined Competitors<\/em>\u201d were: Philadelphia; Long Island, N.Y.; Fairfield County, Conn.; Queens, Bronx and Staten Island, N.Y.; Minneapolis\/St. Paul; Sacramento, Calif.; Kansas City, Mo.; Las Vegas; Baltimore; District of Columbia; and Detroit. \u201cTreasures Ripe for Discovery<\/em>\u201d recognized Jacksonville, Fla.; Salt Lake City; Columbus, Ohio; Cincinnati; Louisville, Ky.; Pittsburgh; Greenville, S.C.; Oklahoma City; Cape Coral\/Fort Myers\/Naples, Fla.: Boise, Idaho; Spokane and Tacoma, Wash.; Des Moines, Iowa; and Jersey City, N.J.       <\/p>\n

Industrial leads the pack<\/strong><\/h2>\n

The report also ranks the major property types for investment prospects. Topping the list was industrial\/distribution due to total return performance and the outstanding demand prospects for supply chain real estate. Following closely behind were multifamily and single-family real estate, which also enjoy strong supply and demand fundamentals now. Less favorable were office (due to changes in how people are working), hotel (due to declining revenues and the threat of an economic slowdown) and retail (due to the threat of e-commerce and changing retail platforms).<\/p>\n","protected":false},"excerpt":{"rendered":"

The annual report by the Urban Land Institute and PwC is based on surveys and interviews of 2,200 real estate professionals. <\/p>\n","protected":false},"author":756,"featured_media":1004353928,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,23891,21742],"tags":[47087,32843,36147,33395],"class_list":["post-1004353901","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-national","category-latest","tag-andrew-warren","tag-boston-properties-inc","tag-pwc","tag-urban-land-institute"],"acf":[],"yoast_head":"\nEmerging Trends 2020: Stay Alert to These Changes - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/emerging-trends-2020-stay-alert-to-these-changes\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Emerging Trends 2020: Stay Alert to These Changes\" \/>\n<meta property=\"og:description\" content=\"The annual report by the Urban Land Institute and PwC is based on surveys and interviews of 2,200 real estate professionals.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/emerging-trends-2020-stay-alert-to-these-changes\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2019-09-20T13:22:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/09\/skyline-shot.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Therese Fitzgerald\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/emerging-trends-2020-stay-alert-to-these-changes\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/emerging-trends-2020-stay-alert-to-these-changes\/\",\"name\":\"Emerging Trends 2020: Stay Alert to These Changes - 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