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ULI -Emerging Trends reportThe Urban Land Institute and PwC (PricewaterhouseCoopers) have published their Emerging Trends in Real Estate 2015 forecast report.

This is a lengthy report but worthwhile to peruse.

Some points in “Chapter 1: Sustaining Momentum but Taking Nothing for Granted” are:

  • Job growth will be in those cities that have an activity in the evening, the live-work-play experience
  • During the next seven years watch whether millennials stay in urban centers or move to the suburbs
  • Boomers actually set the trend of moving to urban areas
  • Medical office use strengthening
  • US labor force may face a worker shortage
  • Technology is pushing the change of how space is used; focus on tech and media companies to lease office space, retailers are using the internet to drive consumers into stores
  • US is not investing in its infrastructure, which will be a problem for real estate if it continue; public/private partnerships may help

“Chapter 2: Real Estate Capital Flows” indicates that for 2015 it may be better to be a seller than a buyer.

A few points in “Chapter 3: Markets to Watch”

  • You have to pick the right market that will be sustainable
  • Crowdsourcing is a movement to raise capital for real estate which may be subject to regulation in the future
  • Equity and debt investors are moving ahead, carefully
  • Capital will continue to flow in more markets in 2015
  • Dollars invested in tertiary markets continue to grow
  • Due to rising labor costs overseas, US manufacturing is coming back

“Chapter 4: Property Type Outlook”, provides an in-depth look at these property types: Industrial, Hotels, Apartments, Retail, Offices, & Housing.