On December 8, 2021, ULI Pittsburgh hosted an in-person Trends in Real Estate breakfast event at The Rivers Club. The event, which focused on Revitalizing and Rebuilding for a Resilient City, was attended by more than 110 real estate professionals. The discussion of trends in the local, regional, and national real estate market, challenges and successes that the industry is experiencing, and where it is heading was initiated by keynote speaker Andy Warren, Director of Real Estate Research for PricewaterhouseCoopers, who provided an overview of ULI’s 2022 Emerging Trends in Real Estate® which he co-authored

Some highlights from the report include:

• The real estate industry feels better about the future compared to last year and justifiably so – we have a vaccine now and have adapted to pandemic challenges.
• Although people are confident, there are some concerns, particularly with material and labor costs and availability.
• The economic impact of the pandemic varied across industries and demographics.
• Industries with a more favorable outlook include industrial/distribution, alternatives (life science, data centers), and housing, while hospitality, office, and retail have a less favorable outlook.
• Although retail has suffered tremendously due to the pandemic, sentiment around retail is favorable, and essential neighborhood shopping centers have found innovative ways to adjust, such as curbside pickup.
• National real estate transaction volume is returning to pre-pandemic levels
• Most employees prefer a hybrid model with an idea of three days per week in the office, which could reduce the demand for office space, though some employers may want more space to spread employees out.
• Flexibility and convenience drive the next decade, where you can work anywhere and live anywhere.
• Looking to 2022, the top three themes of the real estate market are: Housing Crisis Redux (affordability/supply challenges), Retrofitting Cityscapes (suburbanization of the urban core/infrastructure) and Climate Change Are Upon Us (moving from talking to action).

Following Warren’s presentation, Beth Eckenrode, moderator, and co-founder of the AUROS Group introduced Zaheen Hussain and Anna Zetkulic of the Rocky Mountain Institute who provided a video presentation that addressed strategies for providing attainable housing in well-served urban environments and the benefits of urban housing in terms of transportation emissions, equity outcomes, and climate resilience.

The final panelist, Mark Anthony Thomas, president of the Pittsburgh Regional Alliance, discussed opportunities for the region and predicted a post-pandemic recovery for downtown, but noted, “It won’t recover the way it was”. Lynn R. DeLorenzo, Principal of TARQUINCoRE, LLC, led a discussion with attendees, during which Jeremy Waldrup, executive director of the Pittsburgh Downtown Partnership agreed with Thomas and believes there is an opportunity to expand residential development in the CBD. Waldrup cited the progress and success of downtown Pittsburgh adding more residential to the urban core, many through the conversion of office buildings and noting a 37% increase in the number of residential units downtown in recent years. He believes there is an opportunity to expand the downtown population from 6,000 to 8,000 in the next couple of years.

The presentation concluded with a lively discussion from the engaged audience of real estate professionals.