On Friday November 20th, ULI Philadelphia presented its annual Real Estate Forecast for 2016 at The Union League in Center City, Philadelphia. This event featured a panel of leading real estate experts as well as a keynote presentation of this year’s Emerging Trends in Real Estate 2016 report.
Mitchell M. Roschelle, Real Estate Business Advisory Services at Pricewaterhouse-Coopers, began by presenting this year’s report, which delved into mega trends including where to invest, which sectors and markets offered the best prospects, as well as the importance of interest rates, job mobility, fair housing, and the impact of Millennials on the marketplace. He also discussed the changing real estate atmosphere, including the popularity of renting, the emergence of the 18 hour city 2.0, and changes in the way cities function.
After the main topics and trends were presented, three of the region’s top real estate leaders sat down for a panel discussion and audience Q&A session. The panel, led by the Philadelphia Business Journal’s Natalie Kostelni, consisted of: Dustin Downey, the Director of Multifamily Development and Southern Land Company, Jeff Palmquist, Senior Vice President of the Northeast Region at Duke Realty, and Stephen Rice, the Regional Director of Acquisitions and Asset Management at The Davis Companies.
Each fielded questions about what prompted their moves to Philadelphia, what aspects they like about the city, as well as mega trends they’ve seen in both multifamily and mixed use development. The most-talked about point from each speaker was related to how Millennials are changing the real estate business. Dustin Downey described how Millennials are fans of smaller living units, but that “package storage is their number one amenity” since most use online delivery services in place of traditional shopping. Due to this phenomenon, Jeff Palmquist said, “many distribution centers are moving closer to the consumer”, causing a boom in the size and number of developments. Stephen Rice mimicked this sentiment by describing how employers are “looking to invest in areas where Millennials currently live” and aim to offer amenities to entice potential young employees.
Using the Emerging Trends in Real Estate 2016 report as a spark for conversation and debate, the event provided an in-depth analysis of current real estate trends both regionally and nationally. To read the full report click here; for further information on ULI Philadelphia follow us on Twitter.