ULI Releases 40th Annual Emerging Trends Report: Boston #7 on Markets to Watch
ULI in partnership with PwC has released their 40th annual Emerging Trends in Real Estate report, examining the $7 trillion marketplace. The report, compiled with the help of nearly 2400 industry experts identities the top trends to watch for in 2019 along with the top markets in the US. At a panel discussion on October 10th, ULI leadership along with research thought leaders discussed the report and their thoughts on the upcoming markets.
ULI’s Top 10 Markets To Watch in 2019
- Dallas/Fort Worth, TX
- Brooklyn, NY
- Raleigh-Durham, NC
- Orlando, FL
- Nashville, TN
- Austin, TX
- Boston, MA
- Denver, CO
- Charlotte, NC
- Tampa, FL
Among the factors for selection into this top ten list included the readily available and educated workforce pool in cities like Dallas/Fort/Worth & Boston. Others like Orlando & Tampa offer friendly business climates and attractive cost structures. Raleigh, Nashville, Austin, and Boston also have the distinct advantage of strong STEM (science, technology, engineering, and math) job markets which are projected to grow 73% faster than the broader job market over the next 5-10 years. As Mitch Roschelle, Partner of PwC pointed out about Boston. “There is a massive concentration of talent coming out of colleges and universities that have the skills needed for the next generation.”
A few of the top trends included:
Amenities Gone Wild: From office buildings to multi-family developments, amenities are a must have and they are continually growing more unique. According to the ULI data, 81% of employers feel that the proper amenities are one of the top three things they can offer their employees. In the Multifamily sector Tom Toomey, ULI Global Chair and CEO and President, and Director of UDR pointed out that amenities for each development are a different puzzle however they have seen a trend toward services that are saving people time. As he noted these types of services come at a higher cost but do lead to a higher tenant retention rate.
Retail is NOT dead
As Mary Ludgin, Managing Director at Heitman, aptly noted “We need to come up with a more nuanced view of retail. The negative perception many have now is a bit extreme.”. While there are some shopping centers that may be doomed to fail there are many others thriving. There are also reuse options for these spaces and many retailers who are starting online are realizing with increased delivery costs and the higher cost to advertise online that they do in fact need a brick and mortar store.
Overall the report’s outlook for the coming year is positive but attention does need to be paid to the growing technology in the real estate world as well as the fact that real estate has now become an accepted asset class around the globe. Andrew Warren, Director Real Estate for PwC noted: “It feels like we have hit a plateau but there is nothing on the horizon that could cause a sharp downturn.”