Press Release: Austin Earns No. 1 Ranking In Urban Land Institute’s Emerging Trends in Real Estate Report
September 19, 2019
FOR IMMEDIATE RELEASE
AUSTIN EARNS NO. 1 RANKING IN URBAN LAND INSTITUTE’S
ANNUAL FORECAST OF U.S. MARKETS TO WATCH
AUSTIN, Texas – September 19, 2019 – The Urban Land Institute (ULI), an education, research and resource organization focused on providing leadership in the responsible use of land and creating and sustaining thriving communities, today released its annual Emerging Trends in Real Estate® 2020 forecast, and Austin returned to the top spot in the ranking of national markets to watch.
Austin, which ranked No. 6 last year and No. 2 in 2017, regained the No. 1 position in Overall Real Estate Prospects among 80 markets studied thanks to its deep talent pool, unique and popular lifestyle and ambitious commitment to business and real estate expansion. Since 2010, Austin has ranked seventh or higher in each Emerging Trends in Real Estate® report and was most recently ranked No. 1 in 2017. Among other Texas cities making the top 10 hot markets to watch, Dallas-Fort Worth landed at No. 6.
ULI Austin will host an Emerging Trends in Real Estate luncheon on Tue., October 8 from 11:30 a.m. – 1:30 p.m. at the Westin Austin Downtown (310 E. 5th St., Austin 78701). Guests will hear national evaluation and insights from one of the report’s co-authors, Andrew Warren, after which a local panel will provide a unique perspective on the high-level results. Tickets for the luncheon are available for purchase by ULI Austin members and non-members at austin.uli.org/events.
The report noted niche properties ripe for investment and development include data centers, especially with the implementation of 5G technology and the myriad uses that will go along with it, and medical space due to an aging population, increased number of people with medical insurance, technological advances and cost-reduction strategies by insurance companies that favor outpatient care. Multifamily and single-family housing are also highly favored, as housing needs continue to change for millennials and baby boomers. Less favorable: office space, hotels and retail, with the latter receiving the lowest ranking.
Other top trends from the report include:
Millennials Are Finally Moving—To Hipsturbia: Unlike previous generations that were happy to find communities to raise their families that were safe and had good schools, Millennials want that and more. Their suburbs now have to have a cool factor too, with art galleries, hip restaurants and a vibrant night life.
Community – Not Just a Sitcom: Whether you look at it from the bottom up or from the top-down, building a community is on everyone’s lips. Employers want a community to attract and retain employees. Landlords want a community to attract tenants. Cities want a community to spur economic growth.
Sustainability–Not an Exception but an Expectation: Once a way for funds to differentiate themselves in attracting capital, ESG plans have become the norm among institutional and international investors as well as public REITs.
Amenities—From the Cool to the Practical: For workers in different life stages, such as young parents, or suburbanites dealing with long daily commutes, amenities such as on-site dry cleaning and dinner pick-up may be more highly valued than the ping pong table or happy hours of the past.
They Go Together Like Peanut Butter and Jelly: Showing signs of strong growth potential is sharing office space within malls. The built-in amenities of unused space, parking, gym, food and beverage services make the two a natural fit and a win/win for all.
Experiential and Entertainment: Retail continues the trend of creating spaces with one-of-a-kind activities, such as art, amusements, or food, and push the boundaries supportable in shopping centers like sky diving and skiing.
Now in its 41st year, Emerging Trends in Real Estate®, undertaken jointly by PwC and ULI, is one of the most highly regarded annual industry outlooks for the real estate and land use industry. It includes interviews and survey responses from more than 2,200 leading real estate experts, including investors, fund managers, developers, property companies, lenders, brokers, advisers and consultants.
About ULI Austin:
The Austin District Council of the Urban Land Institute was founded in 1994. Today, the Austin District Council includes more than 900 Austin-area professionals in the planning, architecture, design, engineering, investor, landscape, lender, legal, construction, communication and government industries, involved in every sector of real estate development, from residential and retail to commercial and hospitality. ULI is known for its topical monthly breakfasts, which feature local and international experts on topics important to the community’s growth and prosperity. For more information, visit Austin.ULI.org.