Beyond the Build

Construction Trends

Navigating at Altitude

This week I attended our annual ULI Chapter meeting here, where Anita Kramer of ULI’s Washington headquarters presented ULI’s “Emerging Trends in Real estate 2018,” a real estate lookahead produced jointly with PWC. They interview several thousand in the industry, gathering thoughts and opinions combined with data from the field. A few summary takeaways:

  • The “What inning are we in?” question keeps coming up, as if to say cycles have to end after a preset time has elapsed. Right now, the general feeling is that the market is steady as we go. Steady.
  • This is a long cycle, not in boom/bust. One key to success in the next few years will be to expand horizons, market by market, property type by property type, over time.
  • Current expansion is slow by comparison, but seems to be more sustainable–74 months, thus far.
  • Most people interviewed felt all property types are on the upswing. 62% of respondents say business will be good next year and about 19% responded “excellent.”

This is just a start to the solid information we were given. More information to come on real estate facility trends, how generations are affecting the market, and more…

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Merrill Stewart Jr.

Merrill Stewart is Founder and CEO of The Stewart/Perry Company, a commercial building contractor based in Birmingham.