U
LI and PwC released the Emerging Trends in Real Estate 2025 report, highlighting Philadelphia's position among national trends. The report was discussed at the 25th Annual ULI Philadelphia Real Estate Forecast: Leading Through Uncertainty, where nearly 400 real estate and land use leaders gathered to explore the region's outlook on investment, development trends, capital markets, property sectors, infrastructure investment, and other real estate issues.

    Philadelphia has been selected to host the 2027 ULI Fall Meeting, which will welcome over 5,000 real estate and land use leaders from around the world. The event also served as a platform for local leaders to discuss how Philadelphia is positioned to see substantial investment opportunities leading up to the country's 250th anniversary in 2026.

    Industry experts discussed patterns in the region's real estate market, including stabilizing interest rates and the current state of office sales in 2025. The long-term transition to remote and hybrid work environments is playing a role in leasing trends across office markets, with high-quality buildings being almost fully occupied and low-quality buildings underperforming.

    The Emerging Trends report highlighted several key trends, including:

    * Industry leaders are more confident than a year ago but remain cautious, with stability returning to property markets and investors addressing cyclical issues like oversupply.

    * Multifamily may see a supply glut in high-growth areas due to a wave of apartment deliveries peaking in 2024.

    * Higher insurance costs due to growing climate change risks are affecting CRE and housing markets, with real estate firms incorporating climate risk into their decision-making and risk assessments.

    * Data centers dominate the real estate market, fueled by surging demand from cloud storage, mobile data traffic, AI, and emerging technologies.

    The event concluded with a panel discussion on how Philadelphia can capitalize on its 250th anniversary celebration in 2026. The conversation highlighted the importance of intentionality around using revenue from events to address challenges such as affordable housing and public transportation.