A few weeks ago I received my diploma in "moderating panels for non-profit groups that support research and education in real estate and urban land use" when I received call from Nashville ULI to moderate a local panel on the emerging trends in the real estate market.  Lucky me!  Lucky them!

This morning, ULI Nashville presented its highlighted event, "Real Estate Outlook 2012 featuring Emerging Trends in Real Estate."  ULI’s annual report, available for download, reflects the views of leading real estate executives from around the world who completed surveys or were interviewed as a part of the research process for the reports. Interviewees and survey participants represent a wide range of industry experts—investors, developers, property companies, lenders, brokers, and consultants.

This year, ULI Nashville was proud to host Dean Schwanke, Vice President and Executive Director, ULI Center for Capital Markets and Real Estate.  Dean oversees and coordinates ULI’s work on real estate finance and capital markets issues, including books, Emerging Trends reports, online content, continuing education programs and sessions at ULI meetings and conferences.  Among many other items, Dean highlighted two emerging trends for the new year:

  • For 2012, real estate investors must resign themselves to a "slowing, grind-it-out economic recovery following a period of mostly sporadic growth."  This is confined largely to a few real estate markets that offer the primary 24-hour transportation hubs with global access.
  • "Well-leased core real estate in leading markets will continue to produce solid single-digit, income-oriented returns." According to the report, more opportunistic investors will ratchet down forecasts – even projections of returns in the mid-teens appear to be a stretch as risk increases from questionable supply/demand fundamentals.

Local panel members included Bert Mathews of The Mathews Company and Charles Carlisle of Bristol Development Group