PwC

Emerging Trends Report ID’s Top 10 Real Estate Trends in 2023

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By KERRY SMITH, EDITOR, ST. LOUIS CONSTRUCTION NEWS AND REVIEW MAGAZINE

PwC (PricewaterhouseCooper) and the Urban Land Institute’s 44th-annual edition of “Emerging Trends in Real Estate” points to 10 emerging trends that are anticipated to reign over 2023.

They are:

  1. Normalizing property market fundamentals
  2. Structural shifts in how and where U.S. professionals live, work and recreate
  3. Capital moving to the sidelines or to other assets
  4. Overpriced housing, both ownership and rental
  5. Commercial real estate investment demand gravitating to quality, niche assets
  6. Countless existing buildings and properties rendered redundant or obsolete
  7. Sun Belt states’ growing pains/rewards continuing
  8. Increased infrastructural spending for smarter, fairer cities
  9. Climate change’s increasing impact on real estate
  10. Action through environmental and economic regulation

The 2023 report, accessible via https://knowledge.uli.org/-/media/files/emerging-trends/2023/emerging-trends_uscanada-2023.pdf, reflects one-on-one interviews with 617 individuals and survey responses from more than 1,450 individuals.

In response to the national 2023 report, ULI St. Louis offers a list of 40 planned and ongoing St. Louis construction projects as the chapter’s “Reasons for Optimism.”

The projects are: 21c Museum Hotel; The Armory STL; AT&T tower; Brentwood Bound; Brickline; Chesterfield downtown; City Foundry STL; City Stadium; Clayton hotels; Clinton-Peabody reinvestment; St. Louis County’s equitable/sustainable plan; Delmar DivINe; Doorways; Economic Justice Action Plan; Expo; Home Repair Network; The Hub; IISTL; Jefferson Connector; Katherine Ward Burg Garden; MLK Cultural Boulevard; Midwest Climate Collaborative; Nee Kee Nee; new public sector leadership; NGA’s N2W; Pillars of the Valley; Riverpointe; RUNG; Sado; SLSO (Powell Hall) expansion; SLU Hospital; stadium hotels; Summer High School; Target on Grand; Top Golf expansion; UMSL’s North STL County Business & Workforce District; Veterans Community Project; WU Med Center; and St. Louis Zoo expansion.

For more information on ULI St. Louis’ 2023 initiatives, see https://stlouis.uli.org/.

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2022 Real Estate Emerging Trends Include Uncertainty, Flexibility

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By KERRY SMITH, EDITOR, ST. LOUIS CONSTRUCTION NEWS AND REVIEW MAGAZINE

The findings of PwC (PricewaterhouseCoopers) and the Urban Land Institute’s annual survey, Emerging Trends in Real Estate 2022, were shared by Andy Warren, PwC director of research, during CREW-St. Louis’ annual forecast event on December 10.

Continued uncertainty and flexibility are trends dominating the commercial real estate market as brokers, investors, lenders and others look toward 2022. Some 1,200 professionals including private real estate property owners, investors, real estate advisors, servicing firms, asset managers, lenders and construction industry players from across the U.S. answered the survey in mid-2021.

“We made it through the pandemic, but there is a new age of uncertainty,” said Warren, one of several presenters at the CREW-St. Louis virtual event. “Covid impacted every geographic area of the country differently. Likewise, the recovery won’t occur the same everywhere. It looks like our real estate universe is going to get bigger, and that’s good news,” he added.

Among the thriving retail markets post-pandemic, according to survey findings, are dollar stores and home improvement stores. Office is amidst a major reset, the survey found, while certain property types and assets are obsolete as property managers strategize how to repurpose them.

42 percent of survey respondents strongly disagreed with the question, “Will business travel and large-group industry meetings return to pre-COVID-19 levels?” 29 percent agreed that large-group business travel will return to where it was pre-COVID.

“A total of 84 percent of respondents think that the real estate industry will be stronger in 2022 than it has been in 2021,” Warren said. “Although rising operating costs and difficulty obtaining materials are having an impact on inflation and on companies’ bottom lines, it’s not enough to offset the collective optimism for 2022. There is still strong demand in numerous real estate sectors.”

To download the full forecast report and survey findings, see

https://www.pwc.com/us/en/asset-management/real-estate/assets/pwc-emerging-trends-in-real-estate-2022.pdf

https://www.pwc.com/us/en/asset-management/real-estate/assets/pwc-emerging-trends-in-real-estate-2022.pdf

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