According to ULI/PwC’s Emerging Trends in Real Estate 2016 report, Raleigh/Durham’s fundamentals and market outlook remain strong despite dropping from the top ten U.S. investments markets this year.

ULI Senior Vice President Dean Schwanke reported at ULI Triangle’s November 18th Trends program that 84% of this year’s Emerging Trends survey respondents rated their profitability outlook as “good” to “excellent,” mirroring 2006 percentages—which prompted some nervous laughter from the audience. Other significant trends highlighted in this year’s report include: a re-focus on the suburbs; ongoing contraction of office space; a notable amount of equity capital looking for investments; and the outlook for different real estate product sectors. Local Triangle respondents to the national survey rated the outlook for housing, hotel, office, multifamily, retail, and industrial as stronger than the national average, proving we are our own best boosters.

Following the report presentation, ULI Governor Patricia Healy interviewed Mayor Nancy McFarlane on opportunities and challenges for investment in Raleigh. McFarlane mentioned the tensions inherent in a city growing by 63 people per day, but suggested the new Unified Development Ordinance should provide more certainty for development. In addition to developing a world class park at the Dorthea Dix property, McFarlane expressed a desire for a work of public art that could serve as an iconic attraction and rallying point for the community.

This year’s Trends finished with a strong and sometime amusing discussion between real estate developers and investors in the Triangle moderated by Trish Healy and including: Bryan Kane, Federal Capital Partners; Ted Klinck, Highwoods; Mike McDonald, Eastdil Secured; and Tom Taft, Taft Family Offices. Although none of the panelists rated Raleigh/Durham as their top investment/development market—mostly due to the market size and number of opportunities—all agreed Raleigh is a solid market that should continue on a conservative growth trajectory.

Download Emerging Trends in Real Estate 2016 here.