In the tradition of bringing timely and relevant information to our membership, ULI Los Angeles hosted the annual Emerging Trends event on December 4 at Gensler in downtown Los Angeles. The event highlighted trends in every real estate sector both nationally and locally, with esteemed national speaker Mitchell M. Roschelle of PwC and a panel of local market experts, moderated by John Menne.
While at the event, attendees had the opportunity to hear Mitchell M. Roschelle of PricewaterhouseCoopers (co-authors of the report with ULI) share the interesting trends in real estate that are currently sweeping the globe.
During his presentation Mr. Roschelle noted that the highest percentage of urban population growth is occurring in what are called “18-hour cities.” These are cities that don’t necessarily offer a “24-hour lifestyle,” but instead provide residents with late night amenities and dining options, while still allowing time for rest. By doing this these communities are fostering a residential lifestyle, thereby creating a demand for both young millennials and families who desire to be where the action is, without having to pay for it the next morning. A proliferation of new residential units combined with more and more nightlife venues making a change to become neighborhood serving locations, has definitely set Hollywood on the “18 hour city” path.
Another encouraging comment from Mr. Roschelle is that despite the unfortunate fact that bubbles are inevitable in real estate, it is encouraging to see that during this cycle “the industry seems to be behaving more cautiously.” Many professionals are expecting rates to go up, and have been exhibiting actions that follow suit, noted Mr. Roschelle. While time will tell what the future indeed holds, it’s good to know that for now we are moving in the right direction.
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