Back November 16 – Earlier this month, ULI Southwest Florida brought together industry heavyweights for a panel on current market conditions and emerging trends in the real estate market.
Below are the top five takeaways on what continues to drive demand in the Southeast U.S.:
- Eight of the top 10 markets poised to take advantage of current real estate trends are in the Southeast U.S.
- National transaction volume property sales are returning to pre-pandemic levels, with SWFL now exceeding pre-pandemic levels.
- Housing affordability is becoming increasingly more difficult for buyers and renters alike. Early movers in the single-family build-for-rent space will benefit the severe home price appreciation experienced over the last 12 months.
- Supply chain issues are projected to continue and companies are beginning to switch from a ‘just-in-time’ to a ‘just-in-case’ inventory method. Companies are buying and storing inventory in bulk, which has led to historic low vacancies among logistic centers with 2% vacancy in SWFL.
- ESG is becoming increasingly more important with a survey revealing 82% of respondents consider ESG when making operational investment decisions.
The key trends all point to impressive and sustained growth in the Southeast real estate markets. We don’t see any signs of a slowing demand in residential transactions, which is in turn creating more demand for other areas of real estate including light industrial, flex office space and storage as companies and individuals grapple with shifting desires and more flexibility around living accommodations.