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PwC-ULI Emerging Trends Report Debuts in Vegas
The PwC-Urban Land Institute’s recently released “Emerging Trends in Real Estate 2025” suggested that CRE’s troubled past could soon be over. Introduced at the ULI’s late-October fall meeting in Las Vegas, the report noted the following:
Confidence with Caution
Property markets are more stable than in the past, while “investors are addressing cyclical issues like oversupply and adapting to changing consumer and tenant preferences,” according to the report.
“Sentiment is improving, although largely still erring on the side of caution,” said ULI Global CEO Angela Cain in a press release announcing the report. “But we’re glad to see the early signs of capital markets poised for recovery, as firms look to longer-term strong fundamentals and adjust their strategy by market and property type.”
Questions of a Multifamily Glut
Are there too many apartments? Apartment deliveries peaked in 2024, with oversupply concerns in the sunbelt markets. On the other hand, strong job growth, coupled with favorable demographic trends and immigration, could work in multifamily’s favor. The challenge continues to be affordability, as “an increasing number of renters are cost-burdened,” the report noted.
Increasing Insurance Costs
Climate-change hazards—think extreme heat, flooding, wildfires and cold snaps—are exerting their influence on commercial real estate and auxiliary services like insurance. “Nearly half of homes nationwide are at risk from at least one type of severe climate event, making insurance harder to obtain. In response, real estate firms are incorporating climate risk into their decision-making and risk assessments,” the report said.
Data-Center Dominance
The report explained that data center demand will continue to increase “due to the widespread growth of artificial intelligence,” as well as cloud storage and mobile data traffic. The challenge here involves supply constraints, meaning “major data center markets have virtually no vacant space, leading to rising rents and substantial profits for developers able to secure reliable power sources. “
Top Cities to Watch
The report named Dallas-Fort Worth number one on its “2025 Top Markets List.” The report listed myriad reasons for DFW’s top placement, all of which boil down to the phrase: “DFW has enjoyed an enviable post-pandemic recovery.” The report also pointed out that the region’s combination of economic diversity and affordability “should continue to attract new residents and businesses,” though climate-change heat risks shouldn’t be discounted.
The remaining top ten markets to watch are:
- Miami
- Houston
- Tampa-St. Petersburg
- Nashville
- Orlando
- Atlanta
- Boston
- Salt Lake City
- Phoenix
- ◦Sale/Acquisition
- ◦Development
- ◦Financing
- ◦Economy
