New ULI Emerging Trends Report: 7 Trends for Real Estate Investors to Capitalize on in 2013

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The Off Market Association (OMA) is a nationwide network of commercial real estate and finance deal-makers. The association highlights the top real estate investment advice for 2013 as provided by the Urban Land Institutes’ (ULI) Emerging Trends in Real Estate Report for 2013. The report was also discussed by ULI senior fellow Stephen Blank at a recent conference.

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...real estate assets will almost certainly continue to outperform fixed-income investments in the ultra low-interest-rate environment induced by the Federal Reserve, as well as offer a familiar refuge from ever-seesawing stock markets.

Urban Land Institute (ULI) senior fellow and researcher Stephen Blank recently discussed the much anticipated presentation on emerging trends for 2013 in Raleigh, North Carolina. The report highlights modest gains in rents, leasing and prices across the U.S. for 2013. The ULI annual report on Emerging Trends in Real Estate is considered to be a reliable barometer of actual real estate development for investors and developers.

It is notable that the Raleigh-Durham real estate market was mentioned numerous times in the 2013 report. Investors and developers should be excited about the growth prospects of the Triangle area as identified by the ULI research. The Raleigh-Durham area now ranks as number 11 among the U.S. real estate markets to watch, a rise of four places from the 15th spot in 2012.

The report indicates that most developers and investors who want fast returns and "wins" will remain frustrated in 2013. Expectations on returns continue to ratchet down to more realistic but relatively attractive levels. But, say the ULI analysts, "...real estate assets will almost certainly continue to outperform fixed-income investments in the ultra low-interest-rate environment induced by the Federal Reserve, as well as offer a familiar refuge from ever-seesawing stock markets."

Of special note to real estate investors:

1.    Acquisitions should focus on properties near mass transit stations and commercial areas near hip residential neighborhoods.
2.    Focus on construction of green designs and efficient operation in 24 hour markets. Tenants are willing to pay a premium for efficient design and lower operating costs.
3.    Develop industrial facilities in select distribution centers near international airports and sea ports.
4.    Focus on primary investment centers, and use caution when investing in secondary and tertiary markets. When investing in the secondary and tertiary markets, partner with local real estate professionals who understand the local trends and issues.
5.    Low barrier to entry apartment growth is expected to soften, so keep an eye on these and consider carefully these types of investments.
6.    Single market housing funds could provide superior returns to those who have the patience to wait for rentals to be converted into sales.
7.    Renovation and redevelopment of obsolescent properties, such as older office parks and vacant strip centers, could potentially pay handsome dividends.

About The Off Market Association
The world is changing and has changed. Old ways of doing business don’t always apply. The Off Market Association (OMA) brings a new, exciting and visionary way to do business to all our members.

OMA uses a cutting edge technology and platforms, a deal desk, and extensive contacts across the US for commercial real estate transactions, bank note sales, small business advising and SBA loan services. The OMA is affiliated with Sunovis Financial and Genesis Capital to provide investors with access to capital and quick financing.

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Kathy Heshelow
Sunovis Financial | OMA
415-967-0709
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