October 12, 2018
Talent and economic diversity are the leading themes running through this year’s top cities in the latest Emerging Trends in Real Estate 2019 report issued by PwC US and the Urban Land Institute (ULI). Dallas/Fort Worth is back in the No. 1 spot due to its young workforce and high business start-up activity, while Brooklyn (2), Orlando (4) and Tampa (10) make the top 10 for the first time in the report’s 40-year history.
“The key word for real estate’s future performance is transformation – in technology, in generational choices, and in a reconfiguration of preferences related to geography and property types,” said ULI Global Chief Executive Officer W. Edward Walter. “The market shift, which will continue to play out over the next several years, is being fueled by consumers and tenants changing the way they shop and live, what they demand of their spaces, and by new technologies that will enable real estate to be more flexible and responsive to users’ needs.”
Investors find Brooklyn attractive for its urban, industrial appeal and the trend of finding a “last mile” for e-commerce delivery. Orlando and Tampa/St. Petersburg are in-demand as a result of demographic growth, friendly business climate and attractive cost structure. Raleigh-Durham (3), Nashville (5), Austin (6) and Boston (7) round out the list as investors follow the STEM (science, technology, engineering and math) jobs, projected to grow 73% faster than the broader job market through 2026, with annual wages more than double the average, in these tech-heavy markets.
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