2018 ULI Chicago: Real Estate Forecast 2019 — Panel Discussion
This year, the Emerging Trends in Real Estate program drew from entirely local talent, rather than the past practice of bringing in an expert from out of town. In addition, the session featured a moderator who inserted macro-trends throughout the 75-minute program with a panel layout reconfigured from the standard side-by-side to a quasi-roundtable.
The result was a more intimate, as well as more Chicago-centric, overview of the state of the real estate market and the outlook for next year.
In his opening remarks, moderator Joseph Pagliari offered an assortment of observations related to the market now being in the midst of a bond-yield surge. Among other statements, he said short-term rates are projected to rise (by about 60 basis points for one-year rates, to roughly 3.25%) and long-term rates are projected to stay flat (up about 25 points, to 3.3%, for 10-year rates), “barely higher than the one-year rate.”
Jennifer Boss, with Heitman for 24 years, the past seven as a portfolio manager responsible for $4.5 billion in assets, said the long-term outlook on the bond rate is “very favorable” for real estate.
Mike Eglit, who for eight years has been with Blackstone, the largest private owner of real estate in the country, likened that protracted status to the fact that “some games go into extra innings.”
David Scherer is one of two principals at Origin Investments since its 2007 founding. The firm has offices in Chicago, Charlotte, Denver and Dallas and is focused heavily on multi-family housing, with interest also in office space—an asset class that has “outsized risk” currently, he said.
Read the full event recap for more from our panel.
Session Summary: This year, the Emerging Trends in Real Estate program drew from entirely local talent, rather than the past practice of bringing in an expert from out of town. In addition, the session featured a moderator who inserted macro-trends throughout the 75-minute program with a panel layout reconfigured from the standard side-by-side to a quasi-roundtable.
The result was a more intimate, as well as more Chicago-centric, overview of the state of the real estate market and the outlook for next year.
In his opening remarks, moderator Joseph Pagliari offered an assortment of observations related to the market now being in the midst of a bond-yield surge. Among other statements, he said short-term rates are projected to rise (by about 60 basis points for one-year rates, to roughly 3.25%) and long-term rates are projected to stay flat (up about 25 points, to 3.3%, for 10-year rates), “barely higher than the one-year rate.”
Jennifer Boss, with Heitman for 24 years, the past seven as a portfolio manager responsible for $4.5 billion in assets, said the long-term outlook on the bond rate is “very favorable” for real estate.
Mike Eglit, who for eight years has been with Blackstone, the largest private owner of real estate in the country, likened that protracted status to the fact that “some games go into extra innings.”
David Scherer is one of two principals at Origin Investments since its 2007 founding. The firm has offices in Chicago, Charlotte, Denver and Dallas and is focused heavily on multi-family housing, with interest also in office space—an asset class that has “outsized risk” currently, he said.
Read the full event recap for more from our panel.