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GlobeSt.com
By Tanya Sterling
WASHINGTON, DC—Real estate still appeals to investors even as economic uncertainty looms and changes in demographics, infrastructure, technology and consumer behavior are triggering flexibility in development, space design and business operations, according to a new report, “Emerging Trends in Real Estate 2020,” undertaken jointly by PwC and the Urban Land Institute.
“Even though we are late in the expansion cycle, volatility in global financial markets, coupled with geopolitical instability continues to drive investors to US real estate,” Mitch Roschelle, a PwC partner, said in prepared remarks. “The asset class remains desirable as investors seek cash flows from tangible investments.”
Hallmarks of this appeal include suburbs that are building exciting town centers and downtowns to compete with nearby 24-hour cities and an industrial/distribution sector that continues to be top-ranked for development and investment prospects. There are other, less desirable trends that the report highlights however, including the lack of housing affordability which has reached the crisis stage and climate change. Regarding the latter, the report notes that extreme heat will adversely impact real estate investments if there is no intervention. Read more.