Research Reports

Find the latest industry reports including reports that have been authored by IREI or by many well-known industry firms.


Revisiting the Case for Listed Real Assets

Courtesy of bfinance

Four years ago, Listed Real Assets (LRA) boasted some of the strongest long-term risk-adjusted returns of any asset class. However, just as LRA was gaining industry recognition as a defined sector, it has endured two years of deeply troubled performance. Today, the picture is rather different. Will a difficult period dampen sentiment towards the sector? Or will investors see this, instead, as a time to ‘lean in’?

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IPM – February 2024

Courtesy of UBS Asset Management

This month, in our Insights into Private Markets (IPM), we bring you short updates into private credit, real estate and infrastructure. In our outlook into private credit, we explain why we have recently made opportunistic allocations to short duration homebuilder finance and reinsurance / Insurance Linked Strategies (ILS).

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Necessity Retail – The Battle-Tested Retail Niche

Courtesy of Lincoln

Following the Great Financial Crisis (GFC) of 2007-2008, “retail” became synonymous with “mall”. This misleading equation grew out of private capital’s shorthand for various shopping center formats, including neighborhood centers, power centers, lifestyle centers, single tenant retail, and yes, malls, among others. By lumping them together, they failed to differentiate retail into its component parts, which have proven historically to perform very differently. This paper focuses on the retail subsector with the strongest and most consistent track record—necessity retail.

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The Popular Housing Narrative Overstates the Mortgage Rate Lock-In Effect

Courtesy of Pretium

Despite the most substantial mortgage rate impact on homebuyers in the modern history of housing, US single-family home prices are up roughly 5% year-to-date through the third quarter. The surprising resilience of home prices has confounded housing observers and led most housing narratives to focus in on the mortgage rate lock-in effect as the root cause of rising home prices. However, structural supply-demand imbalance is the reason home prices are rising, not higher mortgage rates.

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Gateway Markets and Core Property Types: Not What They Used to Be

Courtesy of MetLife Investment Management

To our surprise, we found there has never been an authoritative methodology behind the commonly used real estate categorization of “gateway markets” or “core property types.” We believe both definitions should be based on high transparency and high stability of expected returns and outline our recommendation in this report.

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AI is Transforming the Data Center

Courtesy of Principal Asset Management

AI is transforming the data center, ushering in a new era in data center design and operation. The unique demands of AI workloads, from increased power consumption and cooling requirements to the need for continual learning and updating, require a reimagining of traditional data center architectures. This evolution presents an opportunity for innovation and growth in the data center industry. As AI continues to advance, it will be imperative for businesses and technology leaders to stay abreast of these changes and adapt their strategies accordingly.

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Real Estate Outlook 2024 – Ten Trends Shaping Real Estate Investor and Occupier Attitudes

Courtesy of Zurich

We focus on ten key trends shaping real estate investor and occupier attitudes over the coming year and beyond. The ten themes span geographies, ranging from the macro, like climate and capital markets, to more micro, such as how rising insurance premiums may impact returns. We zoom in on evolving real estate sector trends and explore the case for vertical farming. We also speculate on the role AI will have on the asset class and learn from a few recent high profile real estate company failures. We conclude with our preferred investment strategies and how these may tilt in 2024.

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Powered by Agility – 2024 Strategic Capital Outlook

Courtesy of CenterSquare Investment Management

The final publication in our 2024 outlook series explores Strategic Capital — a groundbreaking strategy positioned at the crossroads between multiple facets of traditional real estate investing. In this paper, we offer a fresh perspective, weighing the pros and cons of investing in singular assets versus dynamic platforms, and spotlight sectors like healthcare and data centers as key areas of opportunity. “Powered by Agility ” delves into the strategic advantages of consolidating fragmented markets and embracing the role of a liquidity provider, offering valuable insights and perspectives into what we’ve dubbed a white space within the real estate investment landscape.

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U.S. Real Estate Market Outlook – Lifting Fog

Courtesy of MetLife Investment Management

We believe private commercial real estate prices may be near or past the trough, following the October trough in the public REIT sector. We believe all property types will benefit from a moderating construction pipeline in the coming years, though office and some pockets of multifamily will work through vacancy challenges in 2024. Real estate cap rates / required returns are stabilizing (and possibly modestly declining), while real estate fundamentals are moderating. As such, the start of the next cycle could be less “V-shaped” than a traditional real estate recovery in our view.

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2024 United States Real Estate Market Outlook

Courtesy of ORG Portfolio Management

2023 was a year that surprised many investors as the potential economic recession that was seemingly imminent at the beginning of the year never materialized in a meaningful way. Economic conditions were favorable for many investment sectors with falling inflation, steady corporate earnings, low unemployment and high economic growth all being capped off by the United States Federal Reserve hinting at multiple interest rate decreases in 2024. For real estate investors, the year was not quite as positive with investment volume remaining at record lows and wide bid-ask spreads bringing current real estate valuations into question. In this article, ORG will provide a review of the real estate markets in 2023 and what investors should look forward to in 2024.

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Listed REITs 2024 Outlook

Courtesy of Principal Asset Management

We believe listed REITs are nearing an inflection point for a new cycle of outperformance. REIT valuations are attractive relative to equities and private real estate. In 2024, moderating interest rates should provide strong tailwinds for REIT stock prices.Property sectors with resilient, structurally-driven demand dominate REIT markets and offer compelling stock selection opportunities for investors. While there are risks to our outlook, we have conviction that public REITs are likely to outperform relative to equities and private real estate in 2024 and beyond.

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2024 Global Listed Infrastructure Outlook

Courtesy of Principal Asset Management

We believe global listed infrastructure (GLI) should continue to deliver comparable returns to global equities at meaningfully lower volatility for several reasons: 1) Today’s GLI valuations offer an attractive entry point relative to equities and unlisted infrastructure, 2)Decelerating growth and inflation that exceeds long-term averages have historically been positive for the relative performance of GLI, and 3) We expect the fundamentals of GLI businesses to remain solid in 2024. Our long-term outlook for global listed infrastructure remains constructive, as the fundamental growth drivers for these companies are poised to outlast today’s macro concerns.

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Capitalizing on a Resetting Real Estate Cycle – 2024 Private Equity Real Estate Outlook

Courtesy of CenterSquare Investment Management

As we continue our exploration of real estate dynamics in 2024, we shift this week to discuss the nuances of private equity real estate in the coming year. The fourth publication in our 2024 outlook series analyzes the dynamics between public and private markets, spotlighting the challenges incurred by private equity investors due to low transaction volumes and the reverberations of a rapid rise in interest rates. Despite these complexities, we remain confident that the year 2024 will present a strategic entry point for investors willing to act. “Capitalizing on a Resetting Real Estate Cycle” delves into the fundamentals driving success within sectors demonstrating asymmetric payoffs, providing valuable insights across residential, industrial and retail property types.

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IPM – January 2024

Courtesy of UBS Asset Management

In the first edition for 2024 of our monthly Insights into Private Markets (IPM), we bring you short updates into private equity, private credit, real estate and infrastructure. We believe that 2024 will be a better year for private equity exits, assuming the global economy is able to achieve a soft landing. Once interest rates have eventually fallen significantly and the market has fully re‑priced, we expect debt, once again, to enhance returns in Real Estate investing.

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It’s Morning for Listed Real Estate

Courtesy of CBRE Investment Management

We’re optimistic for the potential for listed real estate performance in 2024. After nearly two years of negative returns and a significant dislocation from private market values, the REIT asset class is well positioned for investors, in our view. With resilient fundamentals and strong balance sheets, REITs can have the opportunity to go on offense over this cycle and acquire assets in order to enhance cash flow growth. Within, we present our view on REIT fundamentals and the outlook for 2024.

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Keep Your Eyes on the Prize – Steady Improvement Expected for Multifamily Capital Markets in 2024

Courtesy of EMBREY & Rice Economics, LLC

The past 1 1⁄2 years have been difficult for the multifamily industry from a capital markets perspective. This is especially the case when making comparisons with the industry’s spectacular late 2020 to early 2022 period of record investment activity, low borrowing costs, and impressive asset appreciation. But keep your eyes on the prize. Multifamily’s capital markets environment — the universe of all debt and equity decisions, valuations, risk pricing, and investment strategies for existing and to-be-built assets — will improve considerably in 2024. Even stronger gains are expected in 2025. Multifamily’s capital markets revival combined with the sector’s long-term market strength based on robust demand will keep multifamily product in a favorable investment position over the long haul. This paper reviews the principal macroeconomic forces underlining multifamily’s recent capital markets dislocation, particularly Federal Reserve monetary policy and market interest rates. It examines the major capital markets challenges within the financing, investment, and asset pricing arenas. It provides views on how the principal drivers and components of multifamily capital markets are likely to trend in 2024 and 2025.

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Private Markets – Enhancing Your Portfolio

Courtesy of UBS Asset Management

As the European Long‑Term Investment Fund (ELTIF), ELTIF 2.0 regulation update for alternative investment funds comes into force this January, the opportunities for investing in private markets may be opening to a wider audience. Private markets investments can be a powerful tool in helping investors diversify and enhance the traditional 60:40 stocks and bonds portfolio. They can improve outcomes and slightly reduce the volatility of a portfolio.

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Around the World in Ten Trends – 2024 Global REIT Outlook

Courtesy of CenterSquare Investment Management

This piece examines ten pivotal themes that we anticipate will shape the global REIT market in the coming year, drawing insights from experts across the U.S., Europe, and Asia-Pacific regions. Throughout the report, a wide variety of topics, including potential tailwinds for REITs amid easing global rate hikes, the transformative impact of AI on data center demand, and forces influencing both the European senior housing and Chinese housing markets, are highlighted.

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Top 10 Questions – Real Estate Markets in 2024

Courtesy of UBS Asset Management

As markets can see disinflation and signs of interest rates at their peak, there may be light at the end of the tunnel and a path to improved market conditions for real estate in 2024. We think that our gloomy prediction that real estate capital values would bottom out in the second half of 2023 or later has occurred, and we expect capital values to bottom out in 2024. We look at 10 key questions for real estate in 2024, such as how artificial intelligence can be incorporated into real estate investing, government incentives for sustainability, an analysis of the bid-ask spreads across the different property types and assessment of whether the investment opportunities in favored sectors can match the available capital.

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2024 Real Estate Outlook – Threading the Eye of the Needle

Courtesy of Principal Asset Management

The global economy is finely balanced with the push of high interest rates colliding with the pull of strong labor markets. To skillfully navigate through this conflict—aka ‘thread the eye of the needle’—investors need to be able to identify and act upon available opportunities. The 2024 Real Estate Outlook provides an in-depth analysis of the broad real estate market and offers insight into our highest conviction strategies.

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2024 Looking Better Than Before

Courtesy of RCLCO Real Estate Consulting

RCLCO’s Sentiment Survey has tracked real estate market conditions in the U.S. for over 12 years. The events of the last four years have generated unprecedented volatility in the index – with significant swings in sentiment (both positive and negative) resulting from COVID-19 and the initial recovery; followed by inflation and rising interest rates. The RCLCO sentiment index has remained low throughout 2023 but the future outlook has become more encouraging as we approach the end of the year.

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The Foundations of Growth: Proptech in Saudi Arabia

Courtesy of The Proptech Connection

The adoption of the world’s leading technologies across the full asset lifecycle and every sector of the built environment, underpins much of the delivery of the giga-projects. From the mobility and accessibility of NEOM, to the further amplification of a vibrant tourism industry, via developments like the Red Sea projects, Saudi Arabia will be a global leader in demonstrating how tech can enrich how we use space. Whilst much of the technology is currently sourced from global partners, the significant investment in the relatively nascent Proptech sector is starting to reap dividends. Many technologies are starting to take shape and become key parts of the Saudi Arabian built environment.

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2024 Global Market Outlook: Past the Peak, But Not Downhill Yet

Courtesy of Nuveen

The Global Investment Committee members, including Bill Huffman, Head of Equities and Fixed Income, Saira Malik, Chief Investment Officer, Anders Persson, Chief Investment Officer of Global Fixed Income and Carly Tripp, Global Chief Investment Officer and Head of Investments for Nuveen Real Estate shared their views and outlook on various asset classes for 2024.

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ISA Outlook 2024 – Asia Pacific

Courtesy of LaSalle

The sheer size and complexity of the Asia Pacific region means real estate markets and investment opportunities are as diverse as the region itself. In this chapter of ISA Outlook 2024, we discuss this complexity and how China’s new economies – such as high-tech manufacturing and biotechnology – are growing rapidly and, after more than two decades, Japan is hoping to bid sayōnara to deflation. In other key parts of the region – Australia, Hong Kong, Singapore and South Korea – central banks are near the end of their rate-hiking campaigns in a bid to lower inflation which, as in the rest of the world, could lead to a rebound in transaction activity.

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The REIT Cap Rate Perspective, Q4 2023 – REITs on the Rise

Courtesy of CenterSquare Investment Management

Encouraging data indicating diminishing inflation, a moderating labor market, and a more restrained tone from the FOMC suggests the Federal Reserve might have concluded its interest rate hikes. As expected, this acted as a catalyst for REIT performance resulting in cap rate compression across the public markets since the 10-year yield peaked in October. If we are correct about the end of the Fed’s rate hike cycle, we anticipate REITs will maintain their recent upward momentum despite prevailing market uncertainties as we head into 2024. Examining cap rates in both the listed and private real estate markets, our Q4 2023 REIT Cap Rate Perspective Summary Report offers valuable insights into the trajectory of pricing across core and alternative sectors, presenting key data points to illuminate market dynamics.

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Green Premium – Study of New York and London Real Estate Finds Strong Evidence for a ‘Green Premium’

Courtesy of UBS Asset Management

Our research examines 1,453 office building transactions in New York and London between 2010 and 2022, running a regression to analyze the economic implications of environmentally certified commercial real estate while testing for a wide range of factors and we have found evidence of a ‘green premium’. In certain situations, returns will be sacrificed if the asset manager/property owner does not account for the environmental impact that a building has.

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ISA Outlook 2024 – North America

Courtesy of LaSalle

Against a volatile macroeconomic backdrop and with growth expected to slow, we believe that in 2024 it will be the trajectory of interest rates that will have the greatest impact on real estate values in the US and Canada. As investors continue to adapt to cooler conditions, this chapter of ISA Outlook 2024 examines the current landscape and looks ahead to the coming year, including where we see select opportunities emerging, as well as variation between the two markets. We conclude with three broad strategic themes and recommended strategies where investors may consider deploying their capital.

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Revisiting Retail

Courtesy of CenterSquare Investment Management

“Revisiting Retail,” challenges conventional notions pertaining to retail real estate and explores the sector’s evolution. The piece debunks past predictions regarding the decline of brick-and-mortar shopping centers in the face of e-commerce and highlights shifts in consumer patterns that have given way to an omnichannel retail experience. Furthermore, it underscores the resilience and adaptability of the Essential Service Retail (ESR) subsector, positioning it as a compelling investment opportunity amidst market volatility and rising debt costs, while anticipating a continued golden era for retail real estate.

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Swiss Real Estate Insights – Attractive Despite Changes in Conditions

Courtesy of UBS Asset Management

Investors who compare less liquid real estate investments with high‑quality government bonds will have noticed that spreads are low in historical comparison. In our latest Swiss insights into real estate, we’ll explain to you why real estate investments nevertheless remain attractive, in addition to describing the options that are available for investing in real estate.

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Outlook 2024 – After the Rate Reset: Investing Reconfigured

Courtesy of J.P. Morgan Private Bank

There haven’t been this many attractive investment choices to consider in more than a decade. But how do you personalize the possibilities with a strategy that optimizes your specific financial needs and goals? We think the key to harness the dynamics of a new rate world is to understand—and further explore— five important considerations.

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ISA Outlook 2024 – Europe

Courtesy of LaSalle

European property markets have been waiting for a peak in European Central Bank and Bank of England policy rates, for an end to the war in Ukraine and for bid-ask pricing spreads to resolve. Investors ready to move out of waiting mode in 2024 can benefit from rebased prices, opportunities to solve capital stack equations, and strong fundamentals in many sectors. In this chapter of ISA Outlook 2024, we examine the state of the European market and conclude with recommendations for specific investment strategies – underpinned by realism and targeted toward areas of forecast resilient income growth.

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ISA Outlook 2024 – Global

Courtesy of LaSalle

The global macroeconomic context for real estate remains unsettled, and more so than earlier in 2023. Until late summer, interest rates in most major markets exhibited high volatility, but little overall trend. They moved mainly sideways, owing to cooling inflation and expectations that central banks were reaching the end of their tightening cycles. This was helpful in setting a pricing baseline for real estate investors. But the outlook for rates and thus real estate pricing has become more unsettled of late. What does this mean for real estate and how does it intersect with other key trends?

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2024 Infrastructure Outlook Answering Five Tough Questions From Infra-Skeptics

Courtesy of UBS Asset Management

The evolution and development of private infrastructure investing has never been a straight line, and looking into 2024, we see silver linings for the asset class. Private infrastructure had a challenging 2023. Although performance remained relatively stable, fundraising is at the weakest levels in 10 years. High interest rates, mixed economic growth, and geopolitical tensions continue to weigh on the industry. But with most of 2023 behind us, we now wonder whether markets have actually become too bearish. Infra‑skeptics often express disbelief around infrastructure’s current valuations and performance and suggest that it is best to remain on the sidelines before the eventual correction. In our Infrastructure Outlook 2024, in addition to our macro and market update, we address five tough questions that investors are asking.

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2024 European Outlook – Repricing Triggers Revival

Courtesy of AEW

As of November 2023, the global focus has shifted firmly to the war in Gaza. A potential further expansion of the conflict to the wider Middle East region,  which has some of the world's largest oil producers, might increase the risk of higher energy prices and a return of elevated inflation. Even as the Ukrainian war has continued, a Europe-wide recession has been avoided and inflation has continued to come down. With elevated interest rates, the economic outlook has remained gloomy. Bond and stock markets had priced amidst a pause in rate hikes. But fears of further hikes have increased due to the potential expansion of the conflict in the Middle East. In times of heightened uncertainty, scenarios can be a useful tool. In our base case scenario, we assume that inflation, bond yields and real estate borrowing costs will come down. The high speed and signification extent of downward valuations already absorbed during 2022-23 triggers the key question for our 2024 European Outlook as "Which markets have sufficiently repriced and will recover first in the upcoming cycle?"

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Global Real Estate Outlook 2024: Negotiating Higher Rates and Other New Paradigms

Courtesy of M&G Investments

With increasing talk of ‘higher for longer’ interest rates, global real estate markets are adapting to new paradigms. Property yields have risen, but not to the same degree as rates, prompting some to suggest further repricing is needed in order to restore spreads. But is real estate dependent on a wide spread over bonds to deliver performance, or can other return drivers compensate?

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Japan Insights, Real Estate Markets: A Watershed Year in the Making

Courtesy of UBS Asset Management

Japan is at the critical juncture of breaking out from its three decades of stagnation. Nominal growth is returning. The outlook is not set in stone but the current wage-price dynamics look promising and supportive. We expect any policy adjustments during this transition period to be slow and steady. We seek to position in real estate sectors that can ride this new wave of growth.

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Europe – 2024 Real Estate Outlook

Courtesy of PGIM Real Estate

The sharp repricing of European real estate assets continues as interest rates remain elevated and liquidity low. Overshooting is increasingly looking likely. There are positive trends supporting occupier markets, but downside risks dominate going into 2024.

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Asia Pacific – 2024 Real Estate Outlook

Courtesy of PGIM Real Estate

The Asia Pacific real estate market outlook is stabilizing, with the prospects of recovery starting in 2024. However, leasing fundamentals and capital market conditions will remain highly diverse across the region.

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European Sale-Leaseback: An Attractive Investment Opportunity in Today’s Uncertain Market

Courtesy of Clarion Partners

The European sale-leaseback (“SLB”) market continues to benefit from multiple tailwinds. In our recently published research, we discussed these drivers and, more broadly, the appeal of SLB strategies in Europe at this point in the economic/property cycle. Since then, we believe that the SLB opportunity in Europe has become even more compelling. In this piece, we discuss the reasons why, review the investment attributes of SLBs, and outline some of the “best-practices” for risk mitigation in SLB underwriting.

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Real Estate Outlook – Global, Edition November 2023

Courtesy of UBS Asset Management

Initial estimates from statistical agencies painted a mixed picture of economic activity in 3Q23. US growth accelerated to a blistering 4.9% Quarter on Quarter (QoQ) annualized while, after a lull in 2Q23, the Chinese economy picked up to show growth of 1.4% QoQ. However, China remains mired by a housing market downturn, house developer defaults and weak consumer confidence. The eurozone economy was lackluster and shrank 0.1% QoQ, having grown 0.2% QoQ in 2Q23. Ireland, which propped up the eurozone in 2Q23, was a significant drag in 3Q23 as its volatile economy shrank by 1.8% QoQ. A key question is the US’s ability to remain resilient and defy recession. The US jobs market finally showed some signs of softening in October as employment growth slowed to 150,000 jobs Month-on-Month (MoM). Given the very strong economy in 3Q23, a decline in GDP in 4Q23 looks increasingly unlikely. However, we do expect a slowdown of some sort in the first half of 2024 as the very rapid rise in interest rates over the past 18 months continues to feed through. Moreover, a slowdown is likely needed to keep a lid on inflation and stop it from rising again. The narrative on interest rates has shifted to higher- for-longer, particularly for the US, and the 10-year Treasury bond yield touched 5% briefly in October.

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Insights into Private Markets (IPM) – November 2023

Courtesy of UBS Asset Management

In this semi‑annual November edition of Insights into Private Markets (IPM), we’ve explored the latest investment positioning across real estate by region, infrastructure, private equity and private credit and how these private markets asset classes are adjusting to the challenges of the current macroeconomic environment. In the geopolitical and macroeconomic uncertainty of 2023, the probability of ‘higher‑for‑longer’ interest rates persists and the ensuing impact on private markets remains a key investment theme. We provide you with our sector performance outlooks. Opportunities are emerging in debt, as well as an attractive market in private equity secondaries. This edition explores how deglobalization in infrastructure is an underappreciated investment tailwind, the impact of sustainability on a ‘green premium’ for buildings as well as the issue of food security.

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Property Assessed Clean Energy Loans: An Alternative Financing Solution in a Tight Lending Environment

Courtesy of ORG Portfolio Management

Since the United States Federal Reserve began its monetary policy tightening cycle in March 2022, the benchmark interest rate increased from 0%-0.25% to 5.25%-5.50%. This increase in financing costs has sent reverberations throughout the ecosystem of commercial real estate by decreasing the availability of financing from commercial banks and slowing real estate transaction volumes and construction activity. As a result, many real estate developers have been stuck in an unfortunate circumstance where capital market conditions have restricted the viability of new construction and asset repositioning. In order to finance construction opportunities in real estate, a growing number of investors and developers are beginning to look to Property Assessed Clean Energy (“PACE”) loans in the absence of affordable financing in the market. In this article, ORG will briefly address what PACE loans are, how to qualify for and secure PACE financing and how PACE financing can improve capital structures for investors looking to complete real estate investments that have experienced issues with rising financing costs.

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European Real Estate: Frightening Tightening?

Courtesy of Barings

While further capital declines are still occurring, we are now technically past the trough of the European property cycle. The Barings Real Estate team discusses how this is shaping both opportunities and challenges in the asset class.

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The Decisive Eye – Autumn 2023

Courtesy of Principal Asset Management

In recent years, a growing number of students have been desperate to find suitable and affordable accommodation. Estimates show that the shortfall of student beds across the U.K.’s top 18 university towns and cities has risen to 240,0001, an unprecedented level amounting to a crisis in housing.

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U.S. Real Estate Sector Report – Fall 2023

Courtesy of Principal Asset Management

Evaluate real estate investment opportunities on the horizon in the U.S. markets with our bi-annual sector report. Featuring cross-quadrant perspectives from our real estate investment professionals, each report provides current conditions and outlooks for core real estate sectors as well as non-traditional sectors such as data centers.

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Europe Real Estate Sector Report – Fall 2023

Courtesy of Principal Asset Management

Evaluate real estate investment opportunities on the horizon in the European markets with our bi-annual sector report. Featuring cross-quadrant perspectives from our real estate investment professionals, each report provides current conditions and outlooks for core real estate sectors as well as non-traditional sectors such as data centres.

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REIT on the Money – Critical Facts About Today’s Listed Real Estate Market

Courtesy of CenterSquare Investment Management

The Science Based Target Initiative (SBTi), a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF), has evolved to become the pre-eminent organization supporting companies setting emissions reduction and net zero targets in alignment with the 2015 Paris Agreement. We assessed the performance of REITs relative to the global index one year following the date their targets were approved and published.

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Data Centers: Commercial Real Estate’s Digital Frontier

Courtesy of CenterSquare Investment Management

Real estate represents the built environment where we live, work, and play, and the data center sector has the unique distinction of impacting our universal activities. Over the last decade, the proliferation of technology has not only fundamentally changed the way we utilize data centers but has also elevated the criticality of these properties to new heights. In this brief, we examine the backdrop of the rise of the data center sector and share our predictions for a promising future.

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Navigating Multifamily Short-Term Headwinds with a Long-Term Perspective

Courtesy of Aegon Asset Management.

In today’s uncertain US commercial real estate (CRE) market, multifamily stands out as a resilient asset class. While we observe short-term trends such as decelerating rent growth, increasing expenses, and lower transaction volumes, it is important to consider them within the context of structural housing-market challenges, including an overall shortage of housing and increasing barriers to ownership. In light of this, we view long-term debt as a compelling option to access the multifamily asset class.

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Future Green Investments – Emerging Energy Transition Infrastructure Beyond Renewables

Courtesy of UBS Asset Management

With the rising maturity of renewables, returns of traditional projects such as wind and solar have compressed significantly, typically offering single digit Internal Rate of Returns (IRR). Investors that are looking for higher returns, especially in this rate environment, are keen to explore other technologies. The natural question for energy transition investors is – what’s next? Read our new research insight.

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Fall 2023 Real Estate Outlook – Is This What a Soft Landing Looks Like?

Courtesy of MetLife Investment Management

The path to an economic soft landing has widened. The most important update in real estate capital market conditions over the past few months is early signals that transaction activity is thawing. We believe capital markets disruption has created opportunities for higher-yielding real estate debt and preferred equity. Fundamentals generally remain healthy outside the office sector, which could see vacancies rise further next year.

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The Benefits of Diversity – APAC’s Role in Investment Portfolio Growth

Courtesy of Capitaland Investment

This educational piece examines how global investors can augment their portfolio values by investing in Asia Pacific real estate to achieve the benefits of geographical and asset class diversification as well as enhance their risk-adjusted returns. It focuses especially on the nuances specific to pairwise correlations, both inter-regionally and intra-regionally.

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IPM – September 2023

Courtesy of UBS Asset Management

We’re pleased to present to you our September edition of the IPM Monthly Blog, with bite sized insights into real estate, infrastructure and a deeper dive into private credit.

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Investment Outlook: Opportunistic Patience Prevails

Courtesy of Hines

As the data from the first half of 2023 continues to be posted, we offer our interpretation of the findings within the context of real estate investing. This report dives into four macro factors that are impacting the sector and shaping how we build, buy, and operate real estate— both now and over the longer term. It also provides an update on the more immediate signals we are watching to indicate when we should pivot from a patient, defensive stance to a more aggressive, opportunistic, and offensive one. Lastly, it contains regional overviews that describe the current real estate markets in Asia, Europe, and the Americas

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Opportunities in Listed REITs Today

Courtesy of Principal Asset Management

Listed REITs have faced headwinds the past 18 months, with stickier-than-anticipated inflation requiring continued hawkish bank rhetoric, increasing upward pressure on bond yields and negative pressure on real estate values and REIT stock prices. The prospect of a banking crisis driven credit crunch has added to the pressure on the capital-intensive real estate sector. Amidst the bearish sentiment towards real estate a compelling opportunity to own REITs has emerged. The deeply discounted REIT market has largely priced in the challenges for real estate of higher rates and tighter credit markets.

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Inside Real Estate Outlook – Waiting for Godot

Courtesy of Principal Asset Management

In Samuel Beckett’s play “Waiting for Godot”, two characters engage in an endless discussion while awaiting the titular Godot who never arrives. A similar parallel appears to beset global investors waiting for central bankers to signal the end of monetary tightening. Several false dawns later, it seems that the period of waiting may be in sight with inflation subsiding allowing central bankers to bring an end to monetary policy tightening. Godot, it appears may arrive in 2024. The prolonged period of elevated inflation and borrowing costs has not been without cost however. While major economies have avoided recession, households savings are eroding and businesses are beginning to lose some pricing power setting in place conditions for a mild recession or slower growth. Amid this backdrop, in this edition of Inside Real Estate, we discuss our strategic framework and high-conviction ideas that we believe may help to drive and protect investors’ portfolios and prepare for the next cycle. Identifying the most attractive position in the capital stack and overweighting structurally resilient property types are the two building blocks of our strategy that we are pleased to present in this report.

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Catalyst for Change – Commercial Real Estate Private Credit in Asia Pacific

COURTESY OF CAPITALAND INVESTMENT

Private credit in commercial real estate has become an essential component of an investment portfolio for diversification and enhanced risk-adjusted returns in today’s prevailing economic environment. Exacerbated by tighter liquidity and elevated interest rates, traditional lending institutions have become cautious in an increasingly restrictive regulatory environment. Private credit has filled this void by offering creative capital solutions to businesses and individuals. Its potentially higher yields, downside protection, and reduced susceptibility to market volatility make it an attractive asset class.

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Asia Pacific Market Perspective – Q2 2023

Courtesy of AEW Capital Management

A repricing seems to be on the horizon for the Asia Pacific commercial property markets. Which markets might recalibrate and offer attractive opportunities? Dive in AEW’s latest Asia Pacific Research Perspective to learn about potential market shifts and uncover opportunities.

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U.S. Economic & Property Market Perspective – Q2 2023

Courtesy of AEW Capital Management

It appears the Fed may be approaching the end of their tightening cycle and the probability of a “soft landing” has increased.  That said, there are still numerous economic indicators that suggest the risk of recession remains elevated. Read AEW’s U.S. Research Perspective for more insights.

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Real Estate Debt: Highest Yields in Decades

Courtesy of MetLife Investment Management

Guy Haselmann, Head of Thought Leadership at MetLife Investment Management (MIM), recently sat down with William Pattison, Head of Real Estate Research & Strategy at MIM to discuss opportunities within the real estate sector, including why he believes strong opportunities currently exist with high-yield commercial mortgage investments.

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Real Estate: Evaluating the Office Landscape

Courtesy of Meketa Investment Group

The COVID-19 pandemic drastically shifted the way in which many businesses operate and view remote work schedules. Many companies that used to require employees to be in the office five days a week have adopted some variation of hybrid work, meaning some days in the office and some days working remotely. Three years after the start of the pandemic, it appears that a hybrid working environment is becoming the new norm for many employers. As part of the shift to hybrid work schedules, many companies are reevaluating their current office space needs. Perhaps unsurprisingly, many have begun or are planning to downsize their office footprint over the next few years. This means that office, one of the four main property types found in institutional real estate portfolios, is likely to experience a significant structural change. This may translate into a decline in future office construction projects, reductions in overall office utilization, as well as redevelopments and conversions of office spaces into other property types.

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IPM – August 2023

Courtesy of UBS Asset Management

To complement our flagship publication, Insights into Private Markets (IPM), we’re pleased to present to you our August edition of the IPM Monthly Blog. In keeping with IPM, the IPM Monthly Blog provides you with the latest insights and developments in the private markets space but in monthly bite‑sized amounts. This month we’re giving you insights into draft proposals for banking regulations released in the USA, as well as short outlooks into real estate, private equity and infrastructure.

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Global Investment Managers 2023 USD

Rising interest rates have posed a challenge for commercial real estate in the past year. As the transaction market cooled, valuations have shown some signs of softening. Falling stock prices further affected the industry, creating a denominator problem for investors. Amidst these challenges, the global real estate industry grew by 7 percent year-over-year, according to the findings of Global Investment Managers 2023, the results of the annual survey sponsored by Property Funds Research and Institutional Real Estate, Inc. The survey received responses from 228 investment managers that represent total global real estate assets under management of $6.09 trillion (based on 2022 AUM figures), an increase from the previous year’s survey total of $5.68 trillion (based on 228 survey respondents).

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Global Investment Managers 2023 Euros

Rising interest rates have posed a challenge for commercial real estate in the past year. As the transaction market cooled, valuations have shown some signs of softening. Falling stock prices further affected the industry, creating a denominator problem for investors. Amidst these challenges, the global real estate industry grew by 7 percent year-over-year, according to the findings of Global Investment Managers 2023, the results of the annual survey sponsored by Property Funds Research and Institutional Real Estate, Inc. The survey received responses from 228 investment managers that represent total global real estate assets under management of €5.57 trillion (based on 2022 AUM figures), an increase from the previous year’s survey total of €5.1 trillion (based on 228 survey respondents).

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Build-For-Rent Housing: A Solution to Balance Housing Supply

Courtesy of ORG Portfolio Management

Throughout 2022 and 2023, many economists believed that increases in interest rates from the United States Federal Reserve would help to slow the rate of home price appreciation and improve housing affordability. This was because increasing mortgage rates could decrease homebuyers’ appetite at current prices and subsequently keep home prices affordable over the long term. Surprisingly, this slowdown in home price appreciation did not occur because in 1Q 2023, the median sale price of a United States home skyrocketed 32.8% to $436,800 from $329,000 in 1Q 2020. From 1Q 2022 to 1Q 2023, the median home price continued to increase by 0.9%. To date, high mortgage rates have substantially increased housing costs. Home prices remaining high combined with the rapid increase in mortgage rates have led to some of the worst housing affordability conditions in United States history. Increasing the overall supply of housing in the United States should be one the best ways to remedy the housing affordability crisis. ORG believes that Build-For-Rent housing (“BFR”), a subsector of Single-Family Rentals (“SFR”), is a viable strategy for improving overall housing affordability and quality in the United States while allowing investors to optimize their residential real estate portfolios.

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Data Centers: Will Big Advancements in Technology—Like Artificial Intelligence— Render Existing Data Centers Obsolete?

Courtesy of Principal Asset Management

There’s a chip war going on. Semiconductor manufacturers continue to release increasingly powerful processors designed to manage new types of workloads, including artificial intelligence (AI) and machine learning (ML). Frequent headlines about this ‘semiconductor arms race’ have understandably made some investors concerned about whether the facilities supporting these servers—data centers— will become obsolete.

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The Role of Public-Private Partnerships in Infrastructure

Courtesy of Harrison Street

The need for infrastructure spending in the United States has been well documented and observable for some time. In its most recent assessment of the country’s infrastructure, the American Society of Civil Engineers graded the country’s infrastructure with a C-, which was actually an increase from its prior score of D+ and the highest rating in 20 years. Infrastructure needs across America span the spectrum of real asset types and ambitions – ranging from schools to energy and from safety-driven deferred maintenance to carbon reducing innovations – and together they constitute a comprehensive call to action. In seeking to address these deficits, universities and government agencies have been increasingly turning to public-private partnerships (P3s) as vehicles to align the interest of public entities and private capital.

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Technology: A Driving Force for ESG in Real Estate and Infrastructure

Courtesy of Deloitte and Taronga Ventures

Tenants, residents, investors, and regulators are all knocking on the door of real estate and infrastructure actors, demanding green, affordable, and equitable solutions. Heightened social inequality and wellness issues, combined with more frequent and severe extreme weather events, are aggravating the need for Environment, Social and Governance (ESG) risks and opportunities to be addressed. Improving ESG performance is a way for astute real estate and infrastructure organizations to differentiate from their competitors. This is especially true when many are not responding quickly and strategically to ESG risks and opportunities.

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Follow the Containers: U.S. Consumption Markets 2Q 2023

Courtesy of Tishman Speyer

The accelerated transformation of U.S. trade and production over the past two decades is especially evident in select global consumption markets near major ports. These port-accessible markets have emerged as some of the strongest industrial markets in the nation.

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Core Real Estate is out of “Alternatives”

Courtesy of Harrison Street

When viewing sectors, the traditional property types – the office, industrial, retail and apartment sectors – have faced new challenges. Sector allocation is increasingly important for commercial real estate investors, which begs the question – should core real estate investors contemplate more diversification into the alternative sectors?

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Behind the Gate: The Anatomy of a Data Center

Courtesy of Principal Asset Management

Society relies on digital applications for work, education, transportation, entertainment, healthcare, and just about every other aspect of our modern lives. Through these digital applications, we create and consume massive amounts of data (three times as much in 2022 than just four years earlier). All that data—even data ‘in the cloud’—is processed and stored inside a data center. Indeed, data centers are the cornerstones of our digital world. And yet few people have ever been inside one. Most data centers don’t have signs advertising them. You might drive by one on your daily commute and not even know it. You can’t walk up to the lobby and ask for a look around. But in this short paper, we’ll give you a peek inside.

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Greening the Grid: A Tipping Point in U.S. Renewable Energy Production

Courtesy of MetLife Investment Management

While demand for renewable energy is on the rise, and the grid continues to “green,” procurement, transmission and accounting of renewable resources is expected to evolve. How does this transition relate to institutional real estate and asset management strategies? Greening grids have far more implications for asset management than one may think, and understanding the composition of the U.S. electricity supply has the potential to directly influence the types of decarbonization or net-zero strategies adopted by investors. By navigating the evolving challenges and opportunities of a greening grid, investors and asset managers are better positioned to align sustainability goals with long-term investment interests, while building asset-level resilience and mitigating undue risk.

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The Case for Private U.S. Commercial Real Estate

Courtesy of Principal Asset Management

While the global investment landscape may call for a more cautious risk-off approach over the next year, given higher than average inflation, elevated policy and borrowing rates, and increased risk of recession, asset classes that dampen volatility, reduce correlation to global markets, and generate income, remain at the forefront for prudent investors. At its core, U.S. commercial real estate remains an asset class that benefits from positive economic and demographic fundamentals. Although the near-term macroeconomic outlook remains uncertain, regional diversity within the U.S. economy—across metro areas offers investors a diversification hedge to investors not available in most asset classes. Additionally, with the increased stability of its income return, U.S. commercial real estate provides risk-adjusted returns allowing investors to take advantage of potentially increased returns and the reduced risk of a well-diversified portfolio.

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Navigating the Juxtaposition – Challenges and Opportunities in Today’s Real Estate Market

Courtesy of Hamilton Lane

The current market juxtaposition – with low vacancies and double-digit rent growth in certain sectors versus market volatility and reduced liquidity – creates a few challenges when it comes to determining the value of a real estate property in today’s rapidly shifting environment. In terms of property valuations, today’s market is feeling a bit like the gameshow, “The Price is Right.” With price discovery happening in real time, we are all determining our own estimates for what we think is “fair market value.”

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Wide-Ranging Opportunities – What You Need to Know About Real Estate Investing

Courtesy of UBS Asset Management

Real estate can offer investors an abundance of benefits and entry points. In this insightful compendium, UBS Asset Management unveils the real estate universe and important considerations for investors approaching this asset class. They also cover how the asset class is adjusting to the new interest rate environment, how it can benefit from technology and the value of including sustainability amongst other key themes.

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Mid-Year 2023 Economic and Markets Outlook

Courtesy of Bluerock

Is the U.S. headed for a recession? Will the inflation rate continue to decline? What is the outlook for institutional real estate pricing? Which asset classes and real estate sectors are likely to outperform? Find out more in the Bluerock Mid-Year 2023 Outlook.

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Global Macro Outlook | Q3 2023 — The Long and Winding Road

Courtesy of Manulife Investment Management

Key takeaways from this report include: 1) Recession postponed, not canceled, 2) inflation is still too sticky at uncomfortable levels, 3) we believe central bank policy easing will be more gradual than consensus expectations, and 4) shifting geopolitics and the need for a new markets playbook. Read the full outlook for more information and insights.

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Infrastructure Investing – The Myths and Realities, What You Need to Know About Infrastructure

Courtesy of UBS Asset Management

Private infrastructure has over a trillion dollars of assets under management. This asset class now covers a broad range of businesses such as energy, transportation, digital and social infrastructure. It has also gained the reputation of being a stable safe haven especially during the market turmoil in recent years. However, investors are grappling with rapidly changing dynamics around issues such as environment, politics, technology and competition. This paper serves as a compendium for both veterans and newcomers of the industry and explores the ins and outs of the infrastructure asset class beyond just the typical catchphrases and buzzwords.

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Opportune Timing – Interview with Paul Guest on Unlocking Real Estate Opportunities

Courtesy of UBS Asset Management

With the market correction unlocking attractive possibilities, unlisted real estate – an asset class offering stable returns and good protection against inflation – can witness a unique growth opportunity in 2023 and 2024. In this top 10 interview with Paul Guest, Senior Portfolio Manager, we’ll uncover insights into what makes the current investment environment unique, including trends within the real estate sector, the importance of sustainability within private markets, and benefits investors can find within this space.

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Building Momentum – Interview with Roland Hantke on Unlocking Infrastructure Opportunities

Courtesy of UBS Asset Management

Private infrastructure investments are increasingly gaining traction – and for many reasons. Considered a safe haven especially during inflation, infrastructure is receptive to many secular trends currently shaping the global economic scenario. What are these, and how should investors approach this multi-faceted asset class? Roland Hantke, Head of Multi-Managers Infrastructure (MMINFRA) explains how to unlock opportunities in this resilient asset class, and how MMINFRA is well positioned to add value to investors’ portfolios.

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Identifying Resilient Retail Segments for US Commercial Mortgage Lending

Courtesy of Aegon Asset Management

The retail sector has received a lot of attention in recent years given the Covid-19 pandemic, decline of the regional mall, wary shoppers, and subsequent government mandated restrictions, leading some to doubt the need for physical retail establishments in the future. Predictably, e-commerce sales spiked in 2020, but as pandemic restrictions have receded, e-commerce as a percentage of total sales has stabilized in line with the prior trend

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Credit Crisis? Why This Time May Be Different for REITs

Courtesy of Principal Asset Management

“Credit crisis” and “banking stress” are dominating headlines and creating uncertainty for capital markets. Real estate is a capital-intensive industry and depends on well-functioning capital markets to thrive. We believe recent events will likely result in tighter lending standards and translate into lower credit availability and wider credit spreads for real estate broadly. While this is an unwelcomed event and investors likely recall memories of a tough credit crisis for REITs in 2008, we believe this time may be different and the large underperformance of REIT stocks due to credit market concerns is likely overdone.

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Real Estate Outlook, June 2023: Real Estate Reckoning

Courtesy of PIMCO

Our long-term outlook for commercial real estate investing argues for a flexible, long-term approach to seize opportunities in debt and equity investments across the real estate landscape. We see the best opportunities in originating new loans and purchasing existing loans, adopting a broad approach to debt and targeting stressed assets in turbulent markets. In our view, investors should take advantage of opportunities in private credit and special situations emerging from market volatility. We see opportunities with concentrated investments in promising sectors like residential, logistics, and data centers across the U.S., Europe, and Asia-Pacific, adapting to regional trends for maximum success.

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RCLCO Real Estate Sentiment Increases Slightly, Risk of an Impending Recession Remains

Courtesy of RCLCO Real Estate Consulting

RCLCO’s Sentiment Survey has tracked real estate market conditions in the U.S. for over 10 years. Events of the last three years have generated unprecedented volatility in the index – with significant swings in sentiment (both positive and negative) with COVID-19 and the initial recovery, followed by inflation and rising interest rates. The RCLCO current sentiment index had dropped to a new low of 8.3 at Year End 2022, and has recovered somewhat to 19.0 at Mid-Year 2023, yet still remaining in the recessionary zone.

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The Future of the Global Electric Vehicle Industry

Courtesy of Slate Asset Management

The world is facing a climate crisis and decarbonizing our transportation systems will be vital to reducing global greenhouse gas emissions. The adoption of electric vehicles is accelerating around the globe, and will require vast investment to build out the infrastructure required to support the transition away from gas engines. In this white paper, we will examine the current status of the industry, how government policies are driving increased adoption of EVs around the world, the scale of investment in charging infrastructure that will be required, and how certain companies are positioned to capitalize on opportunities in this space. For the purposes of this white paper, “electric vehicle” includes battery electric vehicles and plug-in hybrid electric vehicles.

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China Pensions Reform

Courtesy of KPMG

Major reforms to the Chinese Mainland’s pensions system are creating new opportunities for asset managers. This report, jointly authored by KPMG China and ASIFMA, explores the background to China’s evolving three-pillar pensions system and the demographic factors that necessitated the current reforms, and shares insights from market players on the challenges as well as the opportunities. Pillars 2 and 3 of the pensions assets industry in China could grow to as much as 15-21 trillion RMB by 2030 under the current and potential reforms. The report takes an in-depth look at the three pillars of the pensions framework and considers how firms can play a role in serving this growing market in different areas across basic pensions, enterprise and occupational annuities, and individual pensions.

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Borrowing Your Cake and Eating It Too: Adverse Selection in CRE Debt Prepayment Options

Courtesy of Principal Asset Management

The Federal Reserve’s (Fed) recent rate hikes have created significant headwinds for the commercial real estate (CRE) industry. Transaction activity has plummeted from the highs of 2021 and early 2022, office property loan defaults are on the rise, and there’s a looming wall of mortgage and rate-cap maturities on the horizon. Despite a backdrop of distress, there are still attractive opportunities for new CRE investments, particularly in private debt. Relative values for private debt remain strong, new loan underwriting standards appear robust, and hard assets underpin credit risk. Private CRE debt historically served as a defensive investment strategy relative to equity, which makes it appealing in times of dislocation and distress. However, private CRE debt investing has its own unique risks. This paper highlights an emergent trend within the private CRE debt marketplace: an increase in demand from borrowers for fixed-rate loans with softer prepayment provisions.

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Still Keeping It Simple, Mid-Year Update 2023

Courtesy of KKR

Amidst the supply-side-driven regime change that we believe has unfolded across the global macroeconomic landscape, we continue to advocate for ‘Keeping It Simple’ in today’s market. Key to our thinking is that an investor can now earn strong risk-adjusted returns without the need to stretch in terms of either capital structure or counterparty risk. Consistent with this view, we believe investors can create some really attractive vintages in both the private and public markets by doing the little things well, including maintaining linear deployment, ensuring diversification through sound portfolio construction, and hedging currencies and interest rates where appropriate. In terms of what this backdrop means for investing, in our view, now is a really compelling time to be a lender on a global basis. This vintage should not be missed. We also continue to pound the table on the benefits of collateral-based cash flows in portfolios, particularly Infrastructure, Asset-Based Finance, and certain Real Estate projects that are directly linked to positive nominal GDP growth. Finally, within both Private and Public Equities, we remain thematic in our approach and steadfast in our desire to focus on high free cash flow conversion stories, especially corporate carve-outs and public-to-private transactions.

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Finding Opportunity in Volatility within Asia Pacific, Reprioritising Fundamentals in Challenging Times

Courtesy of CapitaLand Investment Limited

The global outlook for the year ahead is expected to be marred by a slowdown in GDP growth, a continued rise in interest rates and a more targeted approach by many governments in fiscal support measures. As we narrow our focus to the Asia-Pacific (APAC) region, the outlook is brighter. 2023 has so far been an encouraging year, and we expect that the region’s investors will benefit from the developments that have unfolded so far, in the months and years to come. This report looks at the APAC real estate investment landscape and how it has fared and will play out amid the current macroeconomic backdrop. We have considered multiple drivers including post-COVID-19 dynamics, evolving demographics and market fundamentals with the aim of pin-pointing opportunities that underscore the resilience and resourcefulness of this market in challenging times.

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U.S. Research Perspective – Q1_2023

Courtesy of AEW

Fed stays the course with fastest basis point increase in interest rates in 40 years. The rapid increase in rates has yielded a dramatic shutdown in commercial real estate lending. Read this latest research perspective for more insights.

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Real Estate Outlook – Global, Edition May 2023

Courtesy of UBS Asset Management

Economies fared well in the first quarter of the year and performed better than expected. China benefited from COVID-19 restrictions being lifted and bounced back strongly, to record growth of 4.5% YoY. Initial data showed the eurozone returned to modest expansion, of 0.1% QoQ, having stagnated in 4Q22, while the US slowed to growth of 1.1% QoQ at an annualized pace. Most of the advanced economies are expected to experience some decline in output during the downturn, which started in mid-22. The US economy is on a slightly different cycle and is expected to slip into recession in the second half of the year. By this time, Europe and Japan are forecast to be in recovery mode.

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The Power of Innovation – From Niche to Norm

Courtesy of UBS Asset Management

This exclusive interview with Joe Azelby, Head of Real Estate & Private Markets, takes you through the current climate and the challenges and opportunities for investors in the private markets space. Joe discusses innovations in the private markets space and growing niche sectors that are taking this space by storm – many of these themes are addressing many of today’s topical issues such as renewable energy, food security, transportation and healthcare.

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Medical Office Buildings: The Crown Jewel of Office Real Estate

Courtesy of ORG Portfolio Management

In the wake of the COVID-19 pandemic Medical Office Buildings (“MOB”) had solid performance, unlike traditional office. This is primarily due to MOBs being unaffected by work-from-home because of medical procedures requiring in-person attention and specialized equipment to be performed properly. Patients were also resistant to telemedicine with nearly two thirds of Americans preferring to visit their doctor in person. The aging population of the United States is another tailwind for MOBs. In this article, ORG will discuss the characteristics of MOBs and what investment strategies are viable in today’s environment.

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The Case for Medical Office in a Core Real Estate Portfolio

Courtesy of Upshot Capital Advisors

Institutional investors have long included core, private real estate in mixed asset portfolios because of: Income streams that are relatively high and stable, diversification – a low correlation to other financial assets, inflation protection – the ability to mitigate inflationary pressures through increases in rents and the inherent value of the physical property, and a total return that is typically better than fixed income and less volatile than equities. Medical office assets provide these benefits and are 11% of the U.S. commercial real estate market but are generally under-represented in private, institutional portfolios. Investors looking to improve the efficiency of their real estate portfolio should consider a healthy allocation to medical office. In this paper we examine medical office, its demand drivers and how it fares against preferred institutional sectors (industrial and multifamily) on its ability to deliver the benefits of core real estate in a mixed asset portfolio. Let’s start with a look at the drivers of demand for healthcare space.

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IPM – Edition May 2023

Courtesy of UBS Asset Management

Explore the latest investment positioning across real estate, infrastructure, food & agriculture, private equity and private credit. We look at how these private markets asset classes are adjusting to the challenges of the current macroeconomic environment. In 2023, persistent high inflation, volatility across the global banking sector, and continued geopolitical conflicts remain key investment themes. And although many investors remain cautious and there being potentially less funds chasing after the same deals, there could be opportunities for those who are willing to deploy capital.

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Monthly Research Report – Europe

Courtesy of AEW

Our research shows that the Prime European Shopping centre repricing allows for rebound, with our base case scenario forecasting projected returns for prime shopping centres at 7.7% p.a. over the next five years, outperforming the all-sector average. The retail occupier market is stabilising post lockdowns, and with an improving macroeconomic outlook, we expect rents to grow 1.4% p.a. for prime shopping centres during 2023 to 2027. Notably, our forecasts suggest that there will be some capital value recovery. Whilst the higher interest rate environment has undoubtedly slowed investment activity, the prime markets for shopping centres and high street retail are proving increasingly attractive, with 87% of shopping centre markets and 64% of high street retail classified as attractive or neutral in our updated relative value analysis.

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Continuation Funds – Considerations for Limited Partners and General Partners

Courtesy of Institutional Limited Partners Association (ILPA)

Continuation fund transactions have been a prominent feature of the private equity industry over the last few years. More General Partners (GPs) have looked to move selected assets into a continuation vehicle, while giving Limited Partners (LP) the option to roll into the new vehicle, sell their interests and take liquidity or some combination of both options. With increased capital and sophistication in the secondary market, it is likely that these transactions will continue to be a tool for the industry moving forward.

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US Real Estate Faces Challenges, but Opportunities Exist

Courtesy of Cambridge Associates

Investors are understandably concerned about US commercial real estate (CRE), given the rapid changes in interest rates since the beginning of 2022 and the recent banking sector stress. Indeed, the Federal Reserve now expects a recession, which we anticipate will lead to declines in real estate prices in the near term. In the medium term, however, we think that secular tailwinds will continue to benefit select real estate sectors, such as industrial, multifamily housing, and some niche segments.

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Navigating Uncertainty— Risks and Opportunities in Commercial Real Estate

Courtesy of MetLife Investment Management

A combination of macro themes and specific property-type and capital-markets circumstances will present both challenges and opportunities for commercial real estate investors in the months ahead. Liquidity is low, and some segments of the industry like the office sector are facing significant challenges in the space market. Despite the challenges, the coming quarters will likely also prove to be a period of opportunity as is typical for capital providers in a market with low liquidity.

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Life Science GMP: An In-Depth Analysis

Courtesy of ORG Portfolio Management

The life science industry has seen unprecedented growth in the last few years. Record levels of venture capital funding and the increase of focus on public health has led to rapid growth in the pharmaceutical industry. As a result, tenant demand from life science companies has increased quickly. Commercial real estate investors have recognized this shift and have allocated record amounts of capital to providing space for these tenants. However, many investors have failed to distinguish the two main types of life science real estate: Research and Development (“R&D”) facilities and Good Manufacturing Practice (“GMP”) facilities. In this article, we will take a deeper dive into life science GMP real estate and the role it can play in a real estate portfolio.

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The Growing Investment Opportunity for Commercial Real Estate Debt

Courtesy of Ares Management

The commercial real estate (“CRE”) debt market today is experiencing a confluence of market dynamics that Ares Management believes have created attractive near-term investment opportunities. The market environment is characterized by a decreasing availability of debt financing, resetting property valuations, and rising interest rates, which Ares believes could collectively result in favorable risk-adjusted return opportunities.

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Global Asset Managers: Re-Charting the Course

Courtesy of Morgan Stanley

A new macro regime calls for a recalibration of growth priorities. Growth zones – Private Markets, EM/China and Solutions – are nuanced, requiring a more selective approach, and ESG/Thematic opportunities require flexibility to navigate regulatory uncertainty/factor risks. Profit margin squeeze linked to growing complexity, and inflationary costs against a less supportive cyclical and secular top-line outlook are reinforcing pressures for scale and the need for M&A to improve access to growth/efficiency.

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Inflation Protection in Infrastructure Portfolios: Not All Assets are Cut From the Same Cloth

Courtesy of PATRIZIA

In this brief, we present analysis that shows that when it comes to inflation proofing, not all infrastructure assets are the same. Broadly speaking, infrastructure assets can benefit at the operational level during a period of high inflation. However, in some cases, these gains can be more than offset from a revaluation perspective due to the effects of capital structure issues and higher applied discount rates as a result of a subsequent period of higher interest rates.

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Unique Attributes of Real Estate Investments

Courtesy of MetLife Investment Management

Guy Haselmann, Head of Thought Leadership at MetLife Investment Management (MIM), recently sat down with William Pattison, Head of Real Estate Research at MIM to discuss real estate investing. Will helps break down the various sectors into understandable categories and mentions some of the challenges and new opportunities of each. Will then describes some of the unique and diverse characteristics which portfolios receive through investing in some of these subsectors.

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Changing Course: Green Shipping Corridors

Courtesy of PATRIZIA

Green shipping corridors are emerging as an important pathway in decarbonising the shipping industry. Momentum is building, but almost all the work with regards to alternative fuels, the global shipping fleet and the existing landside port infrastructure, lies ahead.

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Active REITs in a Real Estate Allocation: A Guide for Investors

Courtesy of CBRE Investment Management

Increasingly, investors are turning to REITs to optimize and enhance exposures in real estate, one of the cornerstones of a real asset allocation. At CBRE IM, we see listed real estate as complementary to private real estate; we further see actively-managed listed as essential for investors.

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RealAccess – Public vs. Private, Isn’t All Real Estate the Same?

Courtesy of Nuveen Real Estate

Yes, REITs own commercial real estate. Yes, private real estate owns commercial real estate. But from there, their respective roles in a portfolio depart. In this issue, we explore buying opportunities in the market today: currency dispersions, the resurgence of necessity retail centers, changes in housing trends, regional and city diversification and the emerging sector of scientific lab space. These are some of the technical and creative ways that we create more diversified, more resilient real estate portfolios to help buffer today’s market challenges.

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Global Macro Outlook | Q2 2023 — Navigating Turbulence

Courtesy of Manulife Investment Management

The current tightening cycle in advanced economies is the most aggressive in decades, and while markets are pricing in rate cuts, we think it’s premature to anticipate an easing cycle just yet. We believe the macro backdrop will get worse before it gets better, and investors should expect to experience higher and longer bouts of volatility through the second half of 2023.

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Core Real Estate

Courtesy of Meketa Investment Group

How can real estate help diversify an institutional portfolio? In this white paper, Meketa Investment Group provides an overview of core real estate, examine the distinct risk and return characteristics of the asset class, and review key advantages and disadvantages investors considering an allocation should be aware of.

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Completing Real Estate Portfolios: Accessing New Economy Real Estate Through the Listed Market

Courtesy of Ranger Global

Over the last several years, sophisticated institutional investors have increasingly begun to appreciate the benefits of complementing their private real estate portfolios with strategic, long-term allocations to listed real estate. Portfolio expansion into the public markets has allowed for broader sector and geographic diversification and has enhanced real estate portfolios’ ESG attributes by owning best-in-class performers. This represents a change in investment strategy for many institutions, including some of the world’s largest sovereign wealth funds and endowments, whose portfolios have historically sought exposure to real estate primarily through the private markets. Ranger Global believes that the trend of combining both private and listed real estate exposure is being driven by investor recognition of four primary factors: innovation and growth in specialty property types, public/private arbitrage opportunities, attractive investment characteristics, and highly-aligned interests drive shareholder value creation.

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How Does the U.S. Regional Bank Crisis Impact Commercial Real Estate?

Courtesy of Principal Asset Management

Multiple banking failures, including the high-profile collapse of Silicon Valley Bank, have sparked concerns about an impending credit crisis in the U.S., and raised red flags around commercial real estate exposure within the broader financial system. While the recent failures have justifiably caused concern over the health of the banking sector, as bank runs can happen quickly and spiral out of control, it is far more well-capitalized than it was before the Global Financial Crisis (GFC), thanks to more stringent oversight and capital requirements. Moreover, the Federal Deposit Insurance Corporation (FDIC) and Federal Reserve’s (Fed) swift action following the bank failures have prevented a broader credit crunch, which would have had significant and long-term consequences. However, as investors and regulators scrutinize potential sources of concern to the financial system, the questions surrounding commercial real estate are bound to remain elevated.

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Single-Family Rental Homes: The Cutting-Edge of Residential Real Estate Investing

Courtesy of ORG Portfolio Management

Recently, housing affordability has been a topic at the forefront of the real estate industry in the United States. Due to stagnant inflation adjusted wages and increasing mortgage rates eclipsing 20-year peaks of nearly 7%, homeownership is more difficult than ever for the average American family. As a result, the number of homeowners has declined steadily since the mid 2000’s and was further accelerated by the Global Financial Crisis. According to the S&P CoreLogic Case-Shiller 20-City home price index, homes were 6.77% more expensive year-over-year from November 2021 to November 2022. As housing affordability conditions continue to worsen, the spread between the cost to rent and the cost to own has widened quickly. As of June 2022, the monthly cost of a mortgage payment was over $800 higher per month than a rental payment on a similar space. This is the highest mortgage-lease spread since the beginning of the 2000’s. As a result of these these market conditions, rental housing has become far more attractive and cost effective for most individuals. Today, the Single-Family Rental (“SFR”) market has exploded in popularity among both Americans looking for affordable housing options and real estate investors alike.

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Tailwinds Propel Life Science Sector Forward Over the Long Term

Courtesy of Nuveen Real Estate

Sentiment for the life sciences sector reached a fever pitch during the COVID-19 pandemic; global attention turned to the biopharma industry as it mobilized in record time to deliver life-saving vaccines. This unprecedented success was the culmination of decades of research performed in just a handful of laboratory clusters in select cities across the U.S. Independent of the pandemic, life science research has been fueled by other macroeconomic tailwinds. The rapidly aging global population has demanded and will continue to demand breakthroughs in therapies and treatments for degenerative diseases that are more prevalent with age. This megatrend has led to record levels of both public and private funding for the biopharma industry and unprecedented demand for laboratory R&D space.

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Europe Real Estate Sector Report – Spring 2023

Courtesy of Principal Asset Management

Principal's bi-annual Europe real estate sector report includes insights from investment professionals across private and public equity, it provides current conditions and outlooks for the core real estate sectors, as well as non-traditional sectors such as data centers and healthcare. Easily scan for the current conditions and outlook of a sector using the infographics within the report, as well as read quick overviews of ratings, supply and demand, capital values, and more. This comprehensive report is designed to help you evaluate European real estate investment opportunities on the horizon.

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U.S. Regional Banks: Crisis Averted but Commercial Real Estate Likely to Face More Scrutiny

Courtesy of Principal Asset Management

The recent crisis in regional banks in the U.S. has stabilized, but many issues still need to be resolved and more consolidation in the sector is possible, as seen in the recent event over the weekend with the merger of Swiss banks UBS and Credit Suisse. While systemic risk for the U.S. appears to be a small likelihood, the closure of two large regional lenders and further potential consolidation opens questions around broader debt exposure in banks, particularly to commercial real estate at a time when values are deteriorating, especially in the office sector.

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Data Centers: The Tenants Behind the Demand

Courtesy of Principal Asset Management

We are living in the digital age. Society relies on digital applications—and the data creation, storage, and processing they require—for work, education, transportation, entertainment, healthcare, and just about every other aspect of our modern lives. In fact, three times as much new data was created and consumed in 2022 than 2018. All that data is processed inside a data center, so it should come as no surprise that demand for data center capacity is at an all- time high and continues to rise, having grown 137% in the last year alone.

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The Decisive Eye – Spring 2023

Courtesy of Principal Asset Management

Europe’s vibrant travel industry saw a rebirth in 2022 after the hotel industry suffered during the pandemic. Consumers are willing and eager to spend but central banks are applying the brakes on credit through higher interest rates to reduce inflation. This has set up an intriguing environment where hotel occupancy is forecast to remain robust but where owners, particularly those poorly capitalized, will struggle to remain competitive. It is this paradoxical environment where hotel investors may find some interesting opportunities.

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U.S. Real Estate Sector Report – Spring 2023

Courtesy of Principal Asset Management

This bi-annual real estate sector report includes insights from investment professionals across all four real estate quadrants. It provides current conditions and outlooks for all core real estate sectors, as well as non-traditional sectors such as data centers and life sciences.

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Real Estate Outlook – Global, Edition March 2023

Courtesy of UBS Realty Investors LLC

News on the economy at the start of 2023 was better than expected. The eurozone allayed fears and grew slightly in 4Q22, while the US economy maintained a good pace of expansion. Warm weather curbed energy use in Europe and natural gas tanks remained close to full. Optimism also flowed on China following the government’s rapid ditching of its zero-COVID-19 policy. In addition, inflation has fallen globally and looks to have peaked, but remains far above the central bank’s 2% target. The outlook is mixed, with UBS Investment Bank’s analysis of hard data putting recession in the US within the next 12 months at a near certainty, though a strong January jobs report showed little signs of it so far. In the eurozone, the recession probability has fallen back to 25%, while China’s re-opening is set to boost Asia Pacific.

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Infrastructure Investing: Embracing Complexity in Times of Structural Change

Courtesy of Apollo Global Management, Inc.

After a tumultuous 2022, the US economic outlook for 2023 remains cloudy. Renewed uncertainty about inflation and the Fed means markets will continue to be volatile. With that in mind, we believe that infrastructure can offer key attributes—downside protection, low correlation to markets, potential protection against inflation—for investors deploying capital today.

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IPM – Edition March 2023

Courtesy of UBS Realty Investors LLC

In this edition of Insights into Private Markets (IPM), UBS explores how the private markets asset classes of real estate, infrastructure, private equity and private credit are reacting to the challenges of the current macroeconomic environment. UBS covers the topical issues of inflation, interest rates, the energy crisis, supply chain disruptions, and key considerations for investors. UBS explores the growing niche sectors such as life sciences real estate, secondaries as an access point to private markets, and private credit – how the asset class was born during a time of crisis and how it’s faring in today’s environment.

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Subordinate Debt: Discussing the Opportunities in Mezzanine Debt and Structured Financing

Courtesy of ORG Portfolio Management

The rising interest rate environment is beginning to put large amounts of stress on real estate capital stacks today. Large institutional lenders have become more uncertain about originating new loans and will continue to grow more pessimistic throughout the year if the economy experiences a recession. Because of this, the dislocation in real estate debt markets will be significant and present lots of opportunities for debt investing.

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Data Centers: Empowering a Data-Driven World

Courtesy of Principal Asset Management

Data centers have become critical components of our growing dependence on technology. Surging demand coupled with high barriers to entry for new supply and a global search for attractive investment returns have brought the sector to center stage.

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Data Centers: Mitigating Risks for Continued Growth

Courtesy of Principal Asset Management

The essential role of data in our lives is a secular trend that continues to accelerate, fueled by surging digital data creation, cloud computing, the adoption of new technologies, and the growing penetration of the internet in developing markets. As businesses, consumers, and new technologies use ever-increasing amounts of data, data centers have become the cornerstone of our data-dependent world.

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2023 Market Outlook

Courtesy of The Amherst Group

In this report, we share our most recent research that explores economic conditions and impacts on the real estate sector, namely: resilience in the housing market, despite softening home prices; housing demand driven by significant deficit in quality homes; mixed commercial real estate recovery; and opportunities in securitized MBS products.

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Investing in Today’s Infrastructure Environment

Courtesy of Harrison Street

Learn about an infrastructure investment strategy focusing on assets that serve Municipality, University, School and Hospital (“MUSH”) users. The demand for the underlying investments remains strong and has typically been driven by demographics, decarbonization initiatives, aging infrastructure and/or a need for additional capital sources by institutions and private investors. Along with highly structured contractual obligations, the mission-critical nature of the assets to the end users bolsters the probability of long-term success and mitigates off-taker credit risk.

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2023 Market Outlook

COURTESY OF ORG PORTFOLIO MANAGEMENT

2022 was a year marked by uncertainty and volatility. For investors willing to take risks however, the year provided investment opportunities. Structural changes throughout the world in the aftermath of the COVID-19 shutdowns spurred outperformance from residential and industrial properties while punishing retail and office sectors. The high and persistent inflation which was 6.5% year-over-year in December 2022 has led investors to assess rising interest rates and the effect on the broader economy. For most of 2022, real estate professionals saw a daunting investment environment with both equity and debt capital being scarce and transaction volumes coming to a halt. This has led transaction-based valuations to become increasingly questionable. In this article, ORG will provide insight on the key risks and opportunities facing private real estate investors in 2023.

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Investing in Water Infrastructure

Courtesy of MetLife Investment Management

Guy Haselmann, Head of Thought Leadership at MetLife Investment Management, recently sat down with Filipe Cunha, AVP of Infrastructure and Project Finance to discuss global opportunities in the rapidly growing—but under resourced—area of water infrastructure. The discussion covered areas such as clean waters journey, treatment plants, wastewater, storage, droughts and floods, and the technology that makes it all work.

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Real Assets. Real Zero.

Courtesy of EG

Real Zero carbon is different from ‘net zero’ carbon claims in that it doesn’t use carbon offsets or bulk Renewable Energy Certificate (REC) purchases to ‘net off’ total emissions at zero.

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Investing in Commercial Real Estate Debt

Courtesy of Nuveen Real Estate

Commercial real estate debt (CRE) continues to see strong interest from investors globally, especially in today’s volatile, rising interest rate environment. The ability to offer attractive returns with low volatility, steady income flows, and fixed or floating rate structures make real estate direct lending attractive to a wide swath of institutional investors.

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The Emergent Value of Third City Markets – Ranking and Evaluating 20 Under-the-Radar Markets in America

Courtesy of Graceada Partners

They are long standing economic hubs that have stood the test of time over the last century. But, the pandemic has shifted how some people work, and this led to an uptick in people moving from primary markets and dispersing to secondary and tertiary cities in the U.S. The growth of secondary markets like Austin, Charlotte and Sacramento—the phenomenon and growth of what Graceada Partners refers to as the outpost economy—was only the beginning of this paradigm shift. The emergence of viable assets within third city markets have led institutional investors to further analyze these tertiary regions. Using industry data and an internal Graceada Partners formula to rank cities based on criteria ranging from cost of living to quality of life to home values, this report will detail the top 20 third city markets in the United States that could be poised for more investment attention in the coming quarters.

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Real Assets Study 2023 – Sustainable Real Assets in the Spotlight

Courtesy of Aviva Investors

The Real Assets Study 2023 provides investor insight on asset allocation, risks and opportunities, and preferred routes to market, as well as a deep dive into attitudes towards sustainable real assets – covering everything from net-zero targets to whether investors see a trade-off between achieving ESG impact and financial returns.

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Time For an ESG Reset: Results from RCLCO’s Survey

Courtesy of RCLCO Real Estate Consulting

RCLCO’s Real Estate Market Sentiment Survey has tracked confidence in U.S. real estate market conditions for over 10 years. The survey respondents span the real estate industry from operators, developers, investors, service providers, municipalities and more. In 2022, we added a new section to the mid-year survey to better understand the real estate industry’s interest in and adoption of environmental, social, and governance (ESG) initiatives within the investment process. ESG has become a prominent investment topic in recent years—and has recently experienced growing backlash from both ends of the political spectrum. Recognizing these reactions, we wanted to better understand how, if at all, it is actually influencing investment or business decisions in real estate in the U.S.The results suggest a mixed story, and, we believe, a general lack of appreciation for why ESG became a matter of discussion in the first place. This article attempts to unpack what has become a loaded topic by going back to the original intent of the ESG movement in investing, and using our survey results to highlight how it is perceived and put into practice today. We then conclude with our view on why we think having ESG as a component of a company’s investment strategy is integral to long-term success—and how companies can get started (or restarted, as necessary).

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Despite Recent Volatility, U.S. Multifamily Remains on Track

Courtesy of CP Capital

The long-term outlook for U.S. multifamily investments remains strong due to ample dry powder, a structural supply-demand imbalance, and favorable employment, income, and demographic trends. Market conditions are expected to improve in 2023 and beyond as interest rates and supply pipelines level off.

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Reinventing Supply Chains

Courtesy of Partners Group

Where there is disruption, there is opportunity. COVID brought the entire global value chain to a halt, with the scale and speed of the pandemic’s impact on global supply chains eclipsing anything that had been seen before. In Partners Group’s “Reinventing Supply Chains” paper, the firm discusses how private markets play a critical role in creating the resilient and sustainable supply chains of tomorrow.

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Inside Real Estate Strategy Outlook 2023

Courtesy of Principal Asset Management

As the world economy begins to stall, headwinds indicate various challenges on the horizon. We expect 2023 will be a year of transition with investors focusing on playing defense, while preparing for offense. Explore our findings in the 2023 Inside Real Estate annual strategy outlook.

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2023 U.S. Investor Intentions Survey

Courtesy of CBRE

Concerns over rising interest rates, tighter financial conditions and a looming recession are negatively impacting investor sentiment. This will weigh on commercial real estate investment activity, particularly in the first half of 2023. CBRE forecasts that 2023 investment volume will be down by 15% from last year. As interest rates and economic conditions stabilize in the second half of 2023, we expect investment activity will increase.

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2023 Asia Pacific Investor Intentions Survey

Courtesy of CBRE

CBRE's 2023 Asia Pacific Investor Intentions Survey was conducted in November and December 2022. Over 500 responses were received from participants who were asked a range of questions related to their buying intentions, perceived challenges and preferred strategies, sectors and markets for the coming year.

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WALT Discovery: Industrial Assets with Below-Market Rents and Near-Term Lease Expiry Still an Attractive Combo for Investors

Courtesy of Newmark

While the attractiveness of shorter weighted average lease terms (WALTs) is known and has impacted industrial investment activity for years due to their highly attractive mark-to-market potential, the benefit has yet to be quantified in comparison to assets with longer terms in place. Now, as transactions become harder to finance, it is more important than ever to equip the market with data-backed insights to support investment decisions.

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2023 Outlook – Navigating the Labyrinth

Courtesy of Hines

The Fed’s 14-year low-interest rate experiment finally ended. This is a new season of investing, without the familiar tailwind of cap-rate compression. Market conditions for real estate have changed in many countries around the world and investors are adapting their investment strategies. Our investment team has been analyzing market data using proprietary research to handicap the existing landscape as we enter 2023. Our new 2023 Outlook Report dives into the variables we’re tracking to identify and evaluate future real estate investment opportunities.

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Global Macro Outlook | Q1 2023 — The Year Ahead

Courtesy of Manulife Investment Management

Persistent stagflationary dynamics, continued geopolitical upheavals, and an aggressive Fed. As we consider the year ahead, we expect to see a game of two halves, where challenging conditions are likely to prevail in H1 before improving through H2. We examine macro trends that could define 2023.

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Sustainability and Private Equity Real Estate Returns

Courtesy of Avis Devinea, Andrew Sanderfordb, and Chongyu Wangc

This paper explores private equity real estate fund performance and voluntary environmental, social, and governance (ESG) disclosures. Using data from the National Council of Real Estate Investment Fiduciaries (NCREIF), it examines the relationship between performance for funds in the Open Ended Diversified Core Equity (ODCE) Index and reporting to the Global Real Estate Sustainability Benchmark (GRESB), a platform for disclosure about fund/firm-level ESG strategies and performance. The empirical analyses suggest four conclusions. First, there has been substantial adoption of and reporting to GRESB in the last 5 years, suggesting that reporting to GRESB is a form of table stakes for ODCE members. Second, GRESB participation and performance are both significant predictors of cross-sectional fund returns. Third, GRESB participation and performance are associated with the price appreciation component of fund total returns but not with the income component. Fourth, the relationships between fund returns and GRESB participation and scores are independent of local economic conditions. These results close an important gap in the literature about private equity real estate fund performance and ESG/climate change mitigation efforts in commercial real estate markets.

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Real Estate Outlook – APAC, Edition December 2022

Courtesy of UBS Realty Investors LLC

APAC GDP growth accelerated to 4.8% YoY in 3Q22, largely driven by the rebound of China (+4%). Even without its boost, the regional performance was stable as the tightened monetary condition takes its time to feed through. Weaker external demand and increased energy import prices eroded trade balance, but the impact was mitigated by robust private consumptions from post-pandemic spending.

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Real Estate Outlook – US, Edition December 2022

Courtesy of UBS Realty Investors LLC

Private real estate pricing and transaction volume are feeling the impact of higher cost of capital and concerns about weaker economic fundamentals. According to the NCREIF Property Index, appreciation for 3Q22 slowed dramatically from the beginning of the year. The apartment and industrial sectors depreciated by 0.41% and 0.57% respectively, compared to the lofty appreciation of 4.88% and 11.09% in 1Q22. Retail and office depreciated by 0.58% and 1.79%, respectively, in 3Q22. Transaction volume decreased by 21% YoY and bid-ask spreads are widening. We expect further pricing corrections to be widespread across the sectors and regions in 2023.

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Ethnic Grocer Anchored Retail – An Area for Outperformance in Today’s Retail Environment

Courtesy of ORG Portfolio Management

Ethnic grocer anchored retail centers have been higher returning alternatives to conventional grocer anchored centers in recent history without considerable credit risk. These assets can be a very attractive area for investment due to significant demographic tailwinds in demand, steady income and appreciation returns during any economic conditions and the strong congregation point it can provide to an ethnic community.

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Outlook 2023: Global Economy

Courtesy of Schroder Investment Management

Businesses, consumers and markets in the advanced economies seem to have adjusted to the idea recession is coming. The chairman of the US Federal Reserve (Fed), meanwhile, has stopped talking about soft economic landings. For their part, UK politicians are no longer telling us they can use borrowed money to ramp up spending and cut taxes while inflation is at four-decade highs. So, encouragingly, policymakers are now helping to create a sense of realism. Falling interest rates would be the payback for taming inflation and the restoration of price stability, which is so important for businesses to plan and invest sensibly. Lower rates would also afford consumers some relief from a cost of living crisis of historic proportions. For investors, it might allow a recovery in valuations, albeit all bets could be off should geo-political fault lines opened up following the start of the Russia-Ukraine conflict deepen, and/or relations between the US and China change.

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Real Estate Outlook – Europe, Edition December 2022

Courtesy of UBS Realty Investors LLC

The economic outlook for Europe remains extremely challenging. Inflation in both the eurozone and UK has exceeded 10%, resulting in negative real wages across the board and consumer spending being impacted accordingly. Higher borrowing costs are also starting to impact households and businesses. The UK and eurozone are expected to be in a shallow recession by early 2023, with a weak recovery thereafter. Inflation should start coming down next year as base effects come into play and the impact from energy costs becomes deflationary in 1Q24. But core inflation will keep CPI above target in both markets at an annual average of 5.3% in 2023, before dropping to just above 2% in 2024.

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ISA Outlook 2023

Courtesy of LaSalle Investment Management

The global economy in general – and real estate markets in particular – are currently in the throes of an acute episode with pressure coming from every direction. Eventually, we expect post-COVID-19 pressures such as inflation, supply chain issues and large fiscal stimulus to settle and a new normal to emerge.

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Savills Investment Management Outlook 2023: Urban Industrial & Logistics, Essential Retail, Affordable Housing and Real Estate Debt Likely to be Safest Havens in 2023

Courtesy of Savills Investment Management

Latest Savills Investment Management global investor outlook report highlights how investors need to go back to basics and assess the fundamentals in order to weather what is likely to be a challenging year for property markets. Nevertheless, opportunities will present themselves in sectors with strong, long-term growth characteristics, since markets always over-react – there is value to be found in every sector, but there is an increasing focus on top-quality locations, robust ESG credentials and strong fundamentals.

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The Value of Clean Air

Courtesy of DWS & Global Action Plan

DWS, in partnership with the environmental charity Global Action Plan, designed a survey of over 5,000 participants to understand the importance of air quality to residential tenants in Germany, the Netherlands, and the UK. The results demonstrate that not only do tenants consider air quality as a significant factor in their property selection process, but they would be willing to pay more to improve air quality in a home they already occupy. The results also show that there is a lack of understanding around what factors really affect air quality both inside and outside the home. This provides an opportunity for property managers and institutional real estate owners to plug the information gap and introduce active asset management strategies that lead towards cleaner, safer homes for residential tenants in the long term.

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The Global Real Estate DEI Survey 2022

Courtesy of ANREV, INREV, NAREIM, NCREIF, PREA, REALPAC, ULI & Ferguson Partners

The Global Real Estate DEI Survey is the only corporate study of diversity, equity and inclusion (DEI) management practices and data benchmarking in the commercial real estate industry. This Survey represents more than 357,041 full-time employees, $2.34 trillion of assets under management, and a cross section of the commercial real estate industry in terms of size, region and business classification. The Survey brings together participation from 192 unique organizations which provided 210 submissions detailing their DEI practices in North America (81.4% of respondents), Europe (12.4%) and Asia- Pacific (6.2%). Data was collected between July 28 and October 7, 2022.

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2023 Global Investor Outlook – Navigating the Global Real Estate Reset

Courtesy of Colliers

This is the third edition of our annual outlook for global property investors and is an exploration of the forces that will shape the real estate world in 2023 and beyond. The number of investor responses for this survey has been higher than ever, undoubtedly reflecting investors’ concerns and views on global and regional real estate markets in the year ahead. In addition to investor responses to the survey, we interviewed over 30 Colliers Capital Markets professionals to provide their local, sectoral and regional insights.

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RCLCO’s Real Estate Market Sentiment Survey

Courtesy of RCLCO Real Estate Consulting

RCLCO’s Real Estate Market Sentiment Survey has tracked real estate market conditions in the U.S. for over 10 years. Events of the last three years have generated unprecedented volatility in the index – with significant swings in sentiment (both positive and negative) with the advent of COVID-19, the recovery, and now recent Fed action to tamp down persistent inflationary pressures that stemmed from the pandemic. Read in detail how geopolitical uncertainty, persistent high levels of inflation, and rising interest rates have pushed the economy into a recessionary zone.

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2023 Outlook

Courtesy of Cambridge Associates

This report provides a forward-looking view of 9 different asset classes and themes from Private Investments, Credits, Equities, Hedge Funds, to Sustainability & Impact. Cambridge Associate’s outlook for 2023 is rooted in an expectation that the cyclical backdrop will remain challenging amid weak global economic growth, with risks skewed towards missing the current consensus of 2% growth. In that regard, thoughtful decisions – not rash actions – during chaotic environments are what would separate top-performing investors from others.

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Outlook for Real Estate – Five Themes for 2023

Courtesy of Nuveen Real Estate

The themes for 2023 in real estate are driven predominantly by the continued fallout of surging inflation and interest rate hikes from central banks. While the general consensus is that monetary policies will start to ease in the new year, the impact it will have on real estate is yet to be fully felt.

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2023 Outlook – Global Real Estate

Courtesy of Barings

In this roundtable discussion, our experts across real estate debt and equity discuss how they are navigating today’s challenges and weigh in on where investors can turn to find attractive returns. Featuring Nasir Alamgir, Greg Eudicone, Valeria Falcone, Joe Gorin and Séverine Maumy-Laffineur.

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Top 10 Questions for Real Estate Markets in 2023

Courtesy of UBS Realty Investors LLC

In 2023, the environment for real estate looks set to be more challenging, with headwinds coming both from higher interest rates and a weaker economy, which will impact on occupier demand. Against this backdrop, we look at 10 key questions for real estate investors at the turn of the year and how we would approach them.

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Insights into Private Markets – December 2022 Edition

Courtesy of UBS Realty Investors LLC

3Q22 was a challenging one for private markets. Spreads between risk-free rates have narrowed or even reversed, leverage costs have soared and the economic outlook has weakened further. In this environment, it is crucial existing portfolios are positioned against some of the headwinds we know are coming next year.

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Top 10 With… Interview With Jon Hollick, Zac Gauge and Olivia Drew on Life Sciences

Courtesy of UBS Realty Investors LLC

The many macro‑drivers behind the growth of the UK life sciences sector – the third largest market of its kind – are contributing to increasing investors’ appetite towards this relatively new niche. And while access to this field isn’t straightforward, the social impact the sector can unlock is considerable. Jon Hollick, Zac Gauge and Olivia Drew explain what the sector looks like from the inside, how investors can navigate this space, and what future developments may arise.

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How to Protect Your Portfolio Amid a Looming Recession

Courtesy of HLC Equity

Economic turmoil is nothing new. The Great Recession is not so far in the rearview mirror. COVID sent the stock market crashing down and then roaring to new highs. Sky-high inflation and rising interest rates are just the latest conditions to spook investors. Precisely where the markets go from here is anyone’s guess. However, there is good reason to believe that a recession is on the horizon. If not today, then most likely within the next six to twelve months. We’re already starting to see a market correction. There’s no better time than now to start preparing your portfolio for an impending downturn.

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2023 Infrastructure Outlook

Courtesy of UBS Realty Investors LLC

The infrastructure sector remains resilient despite the market turmoil in 2022. Secular trends such as digitalization and decarbonization will continue to drive the need for new investments. However, macro conditions have worsened significantly. Investors can no longer count on cheap credit to boost investment returns. Looking ahead, more reflection and rigor are needed in their investment and asset management strategies to deliver positive outcomes.

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U.S. Economic & Property Market Perspective Q3_2022

Courtesy of AEW

Rapid monetary tightening has resulted in a 10-year Treasury rate above 4%, up from 1.5% at the end of 2021. The private real estate market has yet to readjust to this new monetary environment as the average NPI appraisal cap rates sit well below 4%. The stage has been set for property yields to rise; the only question now is how much yields will rise and will income growth help offset the potential expansion in cap rates and subsequent decline in values.

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Asia Pacific Market Perspective Q3_2022

Courtesy of AEW

New risks and opportunities lie ahead as markets rebalance and reprice. AEW is focused on markets with strong income growth that can offset the impact of higher interest rates. Read AEW’s latest research perspective to get insight into property markets in the Asia Pacific region.

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European Office Markets Starting to Re-Balance

Courtesy of AEW

This report provides an update on European office markets, which have been impacted by the concerns over the long-term impact from working from home (WFH) or hybrid work practices, which is reflected in the discounts to NAV for European office REITs.

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Leverage Strategy

Courtesy of Walton Street Capital

A summary of the common leverage tools used by U.S. real estate debt funds in executing their investment strategies.

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Core Real Estate for Institutional Investors

Courtesy of MetLife Investment Management

Commercial real estate was once viewed as a niche investment sector, but after several decades of evolution, it has emerged as a core asset class for many institutional investors. In recent decades, liquidity has improved, transparency has risen, and core real estate’s investor base has broadened substantially. Joint ventures, private funds, and public and private real estate companies draw capital from sources both foreign and domestic. These vehicles and their investors play an important role in today’s real estate capital markets.

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Top 10 With… Interview With Olivia Muir on ESG in Private Markets

Courtesy of UBS Realty Investors LLC

ESG as an issue is no longer a simple nice-to-have. The topic has moved from somewhere near the bottom of many investors’ priority list, up towards the top. Head of ESG, Olivia Muir, explains how this complex landscape has evolved, the benefits and challenges of investing through an ESG lens in private markets and the business’ current priorities.

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Resilient Housing: Greater Demand, Lower Risk, Recession Resistant

Courtesy of Principal Asset Management

The U.S. residential rental market has demonstrated remarkable strength since the pandemic. All types of housing, including traditional multifamily, single-family rental, and manufactured housing, have exhibited strong occupancies, collections, and rent growth. Furthermore, all price points, from luxury to lower end, and locations, both urban to suburban, are experiencing success in these key operating metrics.

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Emerging Trends in Real Estate 2023

Courtesy of PwC and the Urban Land Institute

Emerging Trends in Real Estate is a trends and forecast publication now in its 44th edition, and is one of the most highly regarded and widely read forecast reports in the real estate industry. Emerging Trends in Real Estate 2023, undertaken jointly by PwC and the Urban Land Institute, provides an outlook on real estate investment and development trends, real estate finance and capital markets, property sectors, metropolitan areas, and other real estate issues throughout the United States and Canada.

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Opportunities in Moderate Income Rental Housing

Courtesy of MetLife Investment Management

Over the past several decades, the residential rental sector has grown from relative obscurity to become one of the largest and most important institutional investment asset classes. The sector offers a wide range of investment options, including risk profiles, housing formats and geographies. In recent years, investors have also begun considering how the income profiles of residents could shape investment strategies. Looking at strategic opportunities in the sector, we believe Moderate-Income Rental Housing offers attractive long-term risk-adjusted returns while supporting the need for more affordable housing in the U.S.

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Investment Opportunities in Private Commercial Mortgage Investments

Courtesy of MetLife Investment Management

At approximately $5.2 trillion, just over half the size of the U.S. corporate bond market, the U.S. commercial mortgage market is home to a variety of attractive investment opportunities. Commercial banks and life insurance companies hold the majority of U.S. private commercial mortgages. In the past, the substantial organizational infrastructure required to access and underwrite them has limited institutional investors’ ability to invest in this asset class. Today, new commercial mortgage investment vehicles are emerging every year, and the asset class is becoming more accessible to a broader range of investors. Also, as financial institutions become more familiar with the asset class, more options for leveraging commercial mortgage loan (CML) investments are becoming available. We believe this increased accessibility and familiarity has emerged at an opportune time, as many institutional investors, from public and private pension funds to foundations and endowments, remain under-allocated to the sector and are seeking income-oriented strategies.

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Markets Report Q3 2022

Courtesy of Middleburg Communities

Middleburg Communities is pleased to present our Middleburg Markets Report for the 3rd quarter of 2022. This report summarizes our current thinking about the rental housing market both nationally and in those markets that we most closely evaluate for development, acquisition, or other forms of investment.

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National Student Housing Report – Q4 2022

Courtesy of Yardi Matrix

Student Housing Maintains Strength – The fall 2022 school year started with a record number of bedrooms preleased and solid annual rent growth. While rent growth is starting to cool, fundamentals still point to a positive outlook for the industry.

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Real Estate Outlook – APAC, Edition September 2022

Courtesy of UBS Realty Investors LLC

APAC economic growth outpaced other regions in 2Q22. Inflation is rising but still modest and central banks’ reaction is not as aggressive as their western peers. Cap rates stayed firm but could rise in the next 1‑2 quarters. We still see bright spots in the region that offer good investment opportunities.

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Top 10 With… Interview With Our Infrastructure Experts On Energy Storage

Courtesy of UBS Realty Investors LLC

Utilizing energy storage when renewable energy production is high, and providing that energy back to the grid when renewables are offline, helps in reducing the grid’s carbon emissions, and achieving decarbonization faster. In the following interview, George Manahilov, Co‑Head of Energy Storage, Ken‑Ichi Hino, Portfolio Manager for Energy Storage, and Alex Leung, Infrastructure Analyst, Research & Strategy, discuss why energy storage is considered a critical grid infrastructure, the sector’s role in carbon reduction and what it takes for investors to reap the benefits of this fast‑growing sector.

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Road Transport is an Important Focus for Decarbonisation

Courtesy of First Sentier Investors

Electric vehicles (EVs) appear to be a compelling investment opportunity, but there are many ways to gain exposure to the EV theme. These include investing in lithium producers who power EV batteries, or the vehicle manufacturers themselves. However, we see the ‘E’ in EV as a significant opportunity, where investors can support the EV revolution by investing in the charging infrastructure that underpins the whole sector.

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Recession and the Roadmap for Listed and Private Real Estate

Courtesy of Cohen & Steers

We see an economic backdrop that will create an opportunity for strong vintage returns for both listed and private real estate. Both cyclical and secular shifts are likely to create investment opportunities, and we think allocating across both private and listed real estate will be critical.

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Diversification With Opportunity – European Real Estate from a Swiss Investor’s Perspective

Courtesy of UBS Realty Investors LLC

The European real estate market offers access to an investment universe that is around 10 times larger than in Switzerland, and the opportunity to participate in various megatrends. Due to its low correlation to Switzerland, the European real estate market is ideally suited for diversification as a complement to Swiss real estate. European core real estate has defensive characteristics such as forecasted real rental growth in the coming years, stable returns, inflation protection and a low correlation to other asset classes.

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Q4 2022 Global Macro Outlook – A Difficult Climb Ahead

Courtesy of Manulife Investment Management

Set against a backdrop of slowing growth, elevated inflation, and negative investor sentiment, global markets have spent the past quarter pricing in an increasingly hawkish profile for central bank rate hikes, leading to a sharp spike in volatility across asset classes. We take a closer look at macro trends that are likely to shape the trading environment in the coming months.

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Infrastructure Secondaries in Today’s Market

Courtesy of Pantheon

Today’s macro environment is characterized by record-breaking levels of inflation, central bank policy tightening, and slowing economic growth across developing and advanced economies. This backdrop has had wide-ranging implications for individuals and businesses, as well as financial markets. Amid the continuing macro and rate uncertainty, public markets have become increasingly volatile, with many investors searching for new opportunities and/or grappling with how to reallocate their portfolios.

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An Analysis of Economic Consistency of Class A Renters

Courtesy of White Oak Partners

Historically, rents among core-plus assets have remained strong despite adverse economic conditions. Despite the Global Financial Crisis upending the real estate market, class A apartments only had three-quarters of negative rent growth during the height of the recession. Rent growth in the subsequent recovery was much more pronounced in class A properties than in other asset classes, driven by strong employment numbers among white-collar professions. Read the full report for further analysis.

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Quarterly Insights – Q3 2022

Courtesy of PGIM Real Estate

As most real estate markets are either in or heading for a downturn, all eyes are focused on the capital markets. Afterall, capital markets move first. But that gets everyone thinking each downturn is the same. They’re not. Each downturn is unique in its own way. And that speaks to the opportunity sets that arise in times like these. Sure it's easy to say, "buy the fundamentals" – but which sectors? Over what period? At what price? This quarter, each region addresses these key questions – Asia Pacific, Europe, and United States.

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Infrastructure in Times of Rising Interest Rates: What (Not) to Fear

Courtesy of CBRE Investment Management

This paper analyses the historic performance of listed and unlisted infrastructure assets against interest rates and other macro factors We find that in periods of below-average economic growth and high inflation, infrastructure performs better than general equities due to the defensive, inflation-linked nature of its cash flows. The diversity of infrastructure sub-sectors works to average out the sensitivity of the asset class to macro factors, including to today’s record-high commodity prices. This means that well-diversified portfolios stand a better chance of generating superior risk-adjusted returns.

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Real Estate Outlook – Europe, Edition September 2022

Courtesy of UBS Realty Investors LLC

European real estate faces a tough 2H22, as a necessary re‑pricing adjusts yields to reflect the increase in debt costs and risk‑free rates that have materialized, impacting returns in the short‑term, while creating opportunities in high conviction sectors.

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Europe Real Estate Sector Report – Fall 2022

Courtesy of Principal Real Estate Investors

We are pleased to share our bi-annual real estate sector report for the European market. Featuring cross-quadrant perspectives from our real estate investment professionals, this report provides current conditions and outlooks for core real estate sectors as well as non-traditional sectors such as data centres. This comprehensive paper is designed to help you evaluate real estate investment opportunities on the horizon within this region.

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U.S. Real Estate Sector Report – Fall 2022

Courtesy of Principal Principal Asset Management

We are pleased to share our bi-annual real estate sector report for the U.S. market. Featuring cross-quadrant perspectives from our real estate investment professionals, this report provides current conditions and outlooks for core real estate sectors as well as non-traditional sectors such as data centers. This comprehensive paper is designed to help you evaluate real estate investment opportunities on the horizon within this region.

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Real Estate Outlook – Global, Edition September 2022

Courtesy of UBS Realty Investors LLC

Global real estate performance was strong in the first half of the year, though investment activity eased from a record high in 2021. We expect some rises in yields in the second half as they adjust to higher interest rates and a weaker economic outlook.

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IPM – Our Quarterly Insights Into Private Markets

Courtesy of UBS Realty Investors LLC

Insights into Private Markets (IPM) is our next generation Real Estate Outlook. IPM uncovers key insights across real estate, infrastructure, food & agriculture, private equity and private credit, including niche specialist areas such as life sciences, the global living sector, private equity secondaries, amongst others. This first edition explores the forces currently shaping the private markets space, such as inflation, including the US Inflation Reduction Act, the war in Ukraine, the rise in food and energy prices, and the circumstances in which these factors may or may not work for individual investors.

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US Inflation Reduction Act 2022 – Top 5 Takeaways for Infrastructure

Courtesy of UBS Realty Investors LLC

On 16 August 2022, President Biden signed the Inflation Reduction Act (IRA) into law. The bill contains USD 369 billion of spending targeted towards energy security and climate change. This is the most important clean energy legislation in recent history, and will significantly broaden the investable universe. We expect to see new investment opportunities across renewable energy, standalone energy storage, sustainable fuels, clean transportation, and traditional infrastructure supporting the domestic supply chain.

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How a Rising Mortgage Rate Environment Affects Multifamily Demand

Courtesy of White Oak Partners

Inflation has turned out to be far stickier than many initially thought and soared to a 40-year high in June 2022. To combat inflation, the Federal Reserve raised interest rates, including a 75-basis point rate hike in June—the highest increase since 1994. As a result, mortgage rates have jumped from 3.2% to 5.7% in the first half of 2022. The combination of rising rates, declining purchasing power, and low inventory of for-sale housing is pricing many would-be homebuyers out of the housing market. As a result, families will remain renters for longer, which will drive multifamily performance for the foreseeable future. Multifamily is often viewed as an inflationary hedge due to staggered lease expirations that allow apartment owners/operators to increase rents to offset rising operational costs. In this edition of WOP Insights, we’ll explore the impact that rising rates have on mortgages, the for-sale housing market, and multifamily demand.

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Economic and Commercial Real Estate Outlook: Bracing for Uncertain Times

Courtesy of Principal Real Estate Investors

Major economies worldwide could enter recession in the next 12 months. And while not all recessions have an indelible impact on commercial real estate markets, investors should anticipate some decline in capital values. Where should commercial real estate investors look for opportunity? We view sectors that have better long-term structural drivers as more durable during a downturn, while more cyclical sectors (office, retail, and hotel) will likely see broader declines in fundamentals potentially allowing price discovery and opening investment opportunities that have been generally scarce. In this paper we discuss why we believe there’s an increased probability of recession and the likely impact on property sectors in both Europe and the U.S.

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Global Investment Managers 2022 Euros

Despite the continuing adverse effects of the coronavirus pandemic on societies and economies around the world, the institutional real estate asset class and industry continued to record impressive performance and growth in 2021. In fact, the global real estate industry grew by a phenomenal 22 percent year-over-year, according to the findings of Global Investment Managers 2022, the results of the annual survey sponsored by Property Funds Research and Institutional Real Estate, Inc. The survey received responses from 228 investment managers that represent total global real estate assets under management of €5.1 trillion (based on 2021 AUM figures), a substantial increase from last year’s survey total of €4.1 trillion (based on 212 survey respondents).

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Global Investment Managers 2022 USD

Despite the continuing adverse effects of the coronavirus pandemic on societies and economies around the world, the institutional real estate asset class and industry continued to record impressive performance and growth in 2021. In fact, the global real estate industry grew by a phenomenal 22 percent year-over-year, according to the findings of Global Investment Managers 2022, the results of the annual survey sponsored by Property Funds Research and Institutional Real Estate, Inc. The survey received responses from 228 investment managers that represent total global real estate assets under management of $5.68 trillion (based on 2021 AUM figures), a substantial increase from last year’s survey total of $4.65 trillion (based on 212 survey respondents).

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Listed Infrastructure: A Complementary Allocation in an Institutional Investor’s Portfolio

Courtesy of Principal Real Estate Investors

Many investors have achieved infrastructure exposure exclusively through the private markets, yet the asset class can also be accessed through listed infrastructure equity strategies. Principal believes listed infrastructure has the potential to serve a variety of complementary roles as part of an overall infrastructure allocation, including to complete a portfolio, preserve liquidity, gain immediate exposure, access tactical opportunities, and/or stay on top of trends.

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REIT Industry ESG Report 2022

Courtesy of Nareit

This report of the REIT industry’s environmental, social responsibility, and governance (ESG) performance details the state of sustainability efforts in the publicly traded U.S. REIT industry in 2022. The report and its 30-plus case studies feature REIT leadership and ESG innovation from a variety of sectors and serves as a practical tool for stakeholders to assess the scale and impact of the REIT industry’s ESG commitments and initiatives. For more information, click here.

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Capital Markets Review – 2nd Quarter 2022

Courtesy of RVK, Inc.

RVK is pleased to issue its capital markets review for the 2nd quarter. This issue discusses supply chain disruptions tied to the war in Ukraine and China’s zero-COVID policy, inflation conditions, hedge funds generally providing downside protection compared to public equity markets, etc.

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Raising the Bar for Rebalancing

Courtesy of J.P. Morgan Asset Management

When rebalancing adds value, it is equated with tactical skill; when it loses value, it is excused as strategic discipline. The opportunities for improving this process are apparent, but reconciling long- term investment strategy with short-term market movements is challenging.

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The Investment Outlook for 2022

Courtesy of J.P. Morgan Asset Management

The first half of 2022 has seen the U.S economy buffeted by multiple shocks including the further pandemic waves, significant fiscal drag and the impacts of both China’s “zero-COVID” policy and the Russian invasion of Ukraine.

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Driving the Economy Through the Rear-View Mirror: Concerns Behind Shelter Inflation’s Lag

Courtesy of The Amherst Group

Historic movements in shelter costs over the past two years may have exposed a weakness in the indices used by policymakers to measure inflation. We believe that were a timelier measure of shelter inflation used, recent monetary policy decisions could have been quite different both in timing and magnitude. Amherst explores causes of shelter lag and illustrates how it may lead to a mismatch between the Fed's interest rate hikes and the state of inflation.

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Can Commercial Real Estate Beat the Current High Inflation Environment?

Courtesy of Principal Real Estate Investors

Real estate has historically been viewed as an asset class that offers potential for preservation during periods of high inflation. In these two special reports, we examine evidence to assess how real estate markets in the U.S. have fared with inflation. Investors need to be mindful that not all property sectors, or locations, will offer the same performance or the same potential hedge against inflation benefits. We recommend focusing on a mix of emerging growth and traditional property types in metro areas aligned with long-term structural drivers that include technology and strong demographic growth profiles.

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Insights into REITs in 2022: A Check-In on Year-to-Date Performance and Current Valuations

Courtesy of Principal Real Estate Investors

Listed REITs and financial markets are under pressure from the forces of rising rates, recession fears, and elevated valuations. With the big sell-off investors should take notice the valuation gap between public and private real estate has widened substantially. In this Q&A with Kelly Rush, Chief Investment Officer, Principal Real Estate Securities, we discuss some of these key forces impacting markets, valuation signals in the REIT market, and what are a few of the relative advantages of owning REITs today.

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Life Science R&D – A Deeper Dive

Courtesy of ORG Portfolio Management

Recently life science research and development (“R&D”) has been brought to the forefront of many real estate investors’ minds. The onset of the COVID-19 pandemic brought light to the necessity of advancements and improvements in drugs, medical devices and other biomedical products. As discussed in ORG’s previous Thought Piece published on November 8, 2021, “Life Science Real Estate - Where Money is Moving Fast”, venture capital funding has also accelerated in recent years. 2021 was a record year for venture funding at over $90 billion of funding, which represents approximately a 150% increase in funding from 2018. Additionally, pre-money valuations of biotech companies increased 21% year over year in 2021. This acceleration in funding has fueled more startup life science companies to launch and with more amounts of cash than ever before. With this, life science R&D lab space has become sacred with many of the top markets reaching vacancies of lower than 3%. As a follow up to ORG’s previous Thought Piece on life science, ORG wanted to provide a deep dive on R&D lab real estate.

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Real Estate Outlook – US, Edition 2, 2022

Courtesy of UBS Realty Investors LLC

Growing economic uncertainty based on weaker consumer sentiment and inflation concerns increases the importance of focusing on durable income growth across real estate sectors, metros, and product types. Continued strong industrial and apartment return performance is anticipated, but at a lower margin than 2021, given interest rate pressures. We expect a deteriorating performance for office and a gradual strengthening in retail performance through 2022.

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Groundbreakers, Issue 2

Courtesy of Prologis

Learn about the future of the global supply chain. This issue features: 1) Q&A with Transportation Secretary Pete Buttigieg on Freight Logistics Optimization Works (FLOW), the information-sharing initiative between ports, shippers, carriers, and others in the supply chain ecosystem including FedEx, UPS, Target, and Prologis, 2) Greg O'Brien, JLL CEO of Markets, reveals the secret weapon helping leaders navigate hybrid work, employee wellness and even sustainability, and 3) Maria Flynn, CEO of Jobs for the Future (JFF), shares how employers can use the last two years of transformation to inform their approach to workforces of tomorrow.

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Real Estate Market Sentiment Dips into Recessionary Zone Amid Economic Uncertainty

COURTESY OF RCLCO Real Estate Consulting

RCLCO’s Real Estate Market Sentiment Survey has tracked confidence in U.S. real estate market conditions for over 10 years. The last two years have been unprecedented in many ways – resulting in more significant swings in sentiment (both positive and negative) than we have seen since the survey inception. Read in detail how economic uncertainty has caused the index to drop into a recessionary zone in mid-2022, including RCLCO’s point of view on current economic conditions and future outlook.

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Real Estate Outlook – Global Overview – Edition 2, 2022

Courtesy of UBS Realty Investors LLC

Global real estate performance remained strong in the first quarter. Investment activity pulled back slightly from the record high at the end of 2021 and the pace of cap rate and yield compression eased. The war in Ukraine is curbing economic growth, boosting inflation and is expected to have a cooling impact on real estate returns.

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The Decisive Eye – Summer 2022

Courtesy of Principal Real Estate Investors

Among the various investment options that have risen to the top from an inflation hedging perspective are real assets, particularly commercial property. In this issue, Principal investigates the relationship between property performance and inflation in Europe to identify any discernible takeaways for investors.

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Passing Effect or Lasting Change? Swiss Real Estate in an Inflationary Environment

Courtesy of UBS Realty Investors LLC

After decades of continuous low inflation levels, real estate investors are experiencing an environment of elevated consumer price growth all around the world. In this publication, we underline our inflation and interest rate expectations and discuss the potential implications of this complex macroeconomic environment for the performance of Swiss real estate investments.

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Industrial Real Estate is a “DIGITAL” Poster Child

Courtesy of Principal Real Estate Investors

The era of hyper-globalization has ended and there is a need for new and varied industrial stock. Strong market fundamentals for warehouse space have translated into outsized investor demand. The long-term demand drivers continue to make the industrial sector attractive—we are focusing on shorter-term development and merchant-build facilities in DIGITAL markets.

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Multifamily Outlook Report

COURTESY OF Walker & Dunlop

As a historically strong multifamily market meets economic headwinds and geopolitical unrest, what does it all mean for you? We’ve been tracking the landscape and trends. You’ll find our latest insights—along with proprietary research—in our new Multifamily Outlook Report

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Real Estate Outlook – Edition 2, 2022

Courtesy of UBS Realty Investors LLC

Global real estate performance remained strong in the first quarter. Investment activity pulled back slightly from the record high at the end of 2021 and the pace of cap rate and yield compression eased. The war in Ukraine is curbing economic growth, boosting inflation and is expected to have a cooling impact on real estate returns.

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Necessity is the Mother of Invention: When Technology Becomes an Amenity

COURTESY OF Veritas Investments

For all the attention given to resident preferences and the constant search for the next “it” amenity in new construction, relatively little coverage addresses how technology can be leveraged as a resident-facing amenity and a tool to achieve scale, among other benefits. While larger garden-style and mid-rise operators anguish over whether to add a dog washing station or a bike repair facility or programming such as wine mixers or yoga classes, smaller-scale assets often don’t have management offices or maintenance shops, much less space for dog runs and fitness studios. And yet smaller-scale apartment assets — under 50 units — make up the majority of apartment properties in the United States. According to the National Multi Housing Council, of the nation’s 31 million apartment buildings, 97 percent are under 50 units. So, how do smaller assets compete? By utilizing proptech, which places innovation at the center of the resident experience and enables operational scale.

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Infrastructure Strategy 2022: A Pivot to the Digital Frontier

COURTESY OF Boston Consulting Group & EDHECinfra

In 2022, global assets under management for infrastructure investments will reach a record high of $950 billion. And as the number of infrastructure investors increases, strategic questions grow in importance. How should investors select their exposures to different segments of the infrastructure universe? What risks and returns can they expect, and what strategic choices can they make to develop their portfolios? What has been the experience of different investment peer groups so far? For investors, has the direct investment model delivered as well as accessing infrastructure investments via fund managers has? This report is the first in a series of annual publications by BCG and EDHECinfra exploring the state of infrastructure investment globally. “Infrastructure Strategy 2022” provides a new perspective on the investment styles and risk-adjusted performance of different groups of infrastructure investors. It also includes a spotlight on an investment theme expected to continue to play an increasingly significant role in the strategies of infrastructure investors: data infrastructure.

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The Affordable Housing Asset Class

COURTESY OF RCLCO Real Estate Consulting

RCLCO has released its updated affordable housing report. The report provides a basic characterization of the current stock of affordable housing, quantifies the performance of the asset class and highlights the nature of the asset class’ advantages, and takes a forward look at the robustness of future demand, reflecting both the fundamental need for increased supply and the long-term attractiveness of investment.

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Student Housing: An Attractive Alternative to Multifamily

COURTESY OF ORG PORTFOLIO MANAGEMENT

Student housing has been growing in interest from institutional investors as an attractive alternative to increase diversification in multifamily portfolios. The ORG Research Team analyzes the student housing sector and how it compares to market-rate traditional multifamily.

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Inflation: considerations for real assets

COURTESY OF IFM Investors

Inflation concerns have been front and centre in conversation for global investors and consumers alike in recent months. Since the beginning of the pandemic, supply-side constraints in the face of strong demand have created disequilibrium, driving inflation higher, and now the conflict in Eastern Europe will likely exacerbate that risk by boosting commodity prices further. Such a spike in inflation in advanced economies has not been experienced for decades and there is uncertainty as to how and when it will be resolved. For asset owners such as IFM Investors this adds a further challenge of navigating the maze of regional and global inflationary pressures confronting them daily. This paper explores the inflationary pressures we face today, the outlook for those pressures and what it means for asset owners, such as IFM.

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Getting Ahead – Private Equity Secondaries Investing

Courtesy of UBS Realty Investors LLC

Private equity secondaries has evolved from a relatively small, somewhat obscure niche into an integrated part of the overall private equity ecosystem. Secondary strategies can offer significant diversification across managers, industries, geographies, strategies, and vintage years. But what exactly are secondaries? How does this sub-asset class consistently outperform the public markets and offer low volatility? And how can its allocation enhance a portfolio?

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Real Estate Outlook – Switzerland, Edition 1H22

Courtesy of UBS Realty Investors LLC

Investor demand for Swiss property remains strong despite the uncertain macroeconomic environment. We expect the future increase of the Swiss interest rate environment to be gradual. Swiss property investments are likely to remain an attractive alternative to a still low yielding bond market.

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Development Offers Outsized Opportunities in the U.S. Housing Market

Courtesy of Principal Real Estate Investors

The U.S. housing market is poised for a substantial uptick in demand as the demographic shape of society intersects with COVID-19 induced shifts. Markets with lower costs of living, higher educated workforces, and exposure to some of the DIGITAL drivers are poised for strong household formation and housing demand. We believe development strategies may offer investors an attractive, risk-adjusted opportunity to harness the potential in this sector and not only provide the potential for excess returns, but also tailored solutions to meet the expanding breadth of evolving ESG and tenant needs.

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Same, but Different – The Evolution and Growth of Infrastructure Debt

Courtesy of UBS Realty Investors LLC

The infrastructure debt market has continued to evolve and grow since its inception as an institutional asset class a decade ago. Its attractive features remain the same while continuing to show resilience throughout times of economic stress, including during the COVID-19 crisis. Infrastructure debt has shown time and time again that it can deliver a sustained yield-pick up at a time of record-low returns in public fixed income.

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At a Tipping Point: Supercharging Decarbonization with Energy Storage

Courtesy of UBS Realty Investors LLC

Renewable energy from wind and solar may be clean and cheap, but they are also intermittent and unpredictable. Traditionally, thermal generation such as coal, gas or nuclear are used to offset the limitations of renewables, especially during hours that are not windy or sunny. However, energy storage has finally become an economic and sustainable alternative to thermal generation.

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Real Estate Outlook – Edition 1, 2022

Courtesy of UBS Realty Investors LLC

The economic recovery continues, albeit interrupted by Omicron, and the war in Ukraine poses a new risk. Global real estate volumes reached a record high, driven by domestic buyers. Falls in office and retail yields were more widespread. We think that any headwinds from interest rate rises will be offset by growth in the economy.

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Sizing Up Office-to-Logistics Conversions

Courtesy of Prologis

With the office sector facing uncertainty due to WFH policies, could converting office properties help meet the insatiable demand for warehousing and distribution facilities? Prologis, the global leader in logistics real estate, takes a deep dive into the market opportunity.

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February 2022: Real Estate Sector Report

Courtesy of Principal Real Estate Investors

We are pleased to share our bi-annual real estate sector report. This piece includes insights from investment professionals across all four real estate quadrants. It provides current conditions and outlooks for all of the core real estate sectors, as well as non-traditional sectors such as data centers and life sciences. Easily scan for the current conditions and outlook of a sector using the infographics within the report, as well as read quick overviews of ratings, supply and demand, capital values, and more. This comprehensive report is designed to help you evaluate real estate investment opportunities on the horizon.

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Essential Housing

Courtesy of AEW

Mike Acton, AEW's Head of Research, touched upon Essential Housing as one of the niche opportunity sets during our webinar. As a follow-up to this interactive discussion, we would like to share with you his recent white paper on this timely and vital topic. In this piece, Mike Acton takes a close look at the importance of meeting the intrinsic demand of essential housing within the multifamily sector. Here, he discusses the realities of the structural supply and demand imbalance for this type of housing and the reasons why the stock of rental properties that are affordable to low and moderate income households never grows.

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Alternative Farming – A Need for the Future

Courtesy of ORG Portfolio Management

Traditional farming has been essential to supplying food for generations of human history. However, alternative farming methods have emerged as the world’s population grows and technology advances. Alternative farming is a systematic approach to farming intended to reduce agricultural pollution, enhance sustainability and improve efficiency and profitability. Two key methods of alternative farming are vertical farms and greenhouses. These two methods have the potential to provide a solution to the future demand for food production and interesting investment opportunities. Vertical farms and greenhouses are able to provide a significantly higher annual yield per square foot, while consuming less water and incorporating more sustainable farming methods than traditional farming.
 

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Logistics Real Estate: Highest Demand, Fastest Rent Growth in History

Courtesy of Prologis

The Prologis Logistics Rent Index examines trends in net effective market rental growth and combines the company’s local insights on market pricing dynamics with data from our global portfolio. In this February 2022 edition, Prologis found that despite inflation concerns, consumers are still shopping, and intense competition for warehouses is pushing rents higher than ever. Prologis also found rents for industrial real estate increased by a record 15.4% worldwide in 2021. Click the report to learn more insights.

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2022 Market Commentary: Ten Takes on a Topsy-Turvy World

Courtesy of Hodes Weill & Associates

This is the 12th year that Hodes Weill is presenting its annual Market Commentary. We ask our 34 global professionals to reflect on both dominant and overlooked trends affecting real estate and real asset investment management. We challenge ourselves to question “conventional wisdom.” This year, dynamic views on ESG, nascent and traditional property sectors, and industry trends were on our minds.

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2022 Market Outlook

Courtesy of The Amherst Group

Amherst uses its proprietary data and analytics to explore how increased inflation, the end of the Federal Reserve’s pandemic-era monetary policy, and pandemic-driven demand for larger homes is impacting the real estate sector. Based on these findings, Amherst expects to see: limited single-family home supply spurring increased prices, demographic trends drive single-family rental demand, mixed commercial real estate recovery, and opportunities in securitized MBS products and transitional CRE loans.

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Real Estate Investment Strategy Quarterly – Our Outlook and Forecasts for 2022

Courtesy of MetLife Investment Management

With inflation being potentially being less transitory than thought a few quarters ago, we evaluated which commercial real estate property types may be the best suited as a hedge against it. Bigger picture, we believe the difference in relative value between markets has increased, with pricing in some market and property type combinations raising caution flags in recent months. Nonetheless, we believe real estate pricing outside of these areas remains favorable. Looking forward, inflation, government responses to Covid-19 variants, labor force participation, and supply chain issues will be our areas of focus in 2022. This report provides our views on these items as well as updated forecasts for commercial real estate performance in 2022.

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2022 House View, North American Property Market Outlook

Courtesy of USAA Real Estate

This publication is produced each year and serves two essential purposes. First, it highlights our outlook for the U.S. economy and the commercial real estate (CRE) sector, as well as significant trends and opportunities. Secondly, it reasserts our investment stance before providing a forward-looking framework regarding our investment themes and strategies.

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2022 House View, European Property Market Outlook

Courtesy of USAA Real Estate

This publication is produced annually and serves two essential purposes. First, it highlights our outlook for the economy, the capital markets and the commercial real estate (CRE) sector. Secondly, it provides a forward-looking framework regarding our investment themes and strategies.

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Life Science Real Estate – Where Money is Moving Fast

Courtesy of ORG Portfolio Management

In the last few years, emphasis has grown on life science both as an industry and a real estate sector. The onset of COVID-19 accelerated the focus on life science and has been followed by incredible growth in investor demand. With the increasing attention and demand, ORG wanted to provide research and analysis to fully understand what life science is and the role real estate plays in the industry.

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2022 U.S. Real Estate Outlook

Courtesy of Virtus Real Estate Capital

Like many of you, we welcome the arrival of 2022.  But, despite the euphoric backdrop of most asset classes, pervasive headlines surrounding market volatility and risk continue to dominate investor sentiment.  Facing the mounting challenges of inflation, fiscal health, and a disjointed labor market, we collectively press pause and ponder if 2022 will seemingly be “2020-too?”  We aim to address this very question at a macro-level and provide asset-class-specific views in our 2022 U.S. Real Estate Outlook.

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The Fourth Utility – Delivering the Future

Courtesy of Actis

Actis' latest The Street View publication, The Fourth Utility – Delivering the Future, gives an insight into the scale of the digital infrastructure opportunity through 10 articles and podcasts, authored by Actis and industry experts. Find out what it takes to successfully invest in sustainable infrastructure globally, drawing on multiple skill sets and decades of experience, with a core commitment to sustainability.

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Top 10 real estate questions for 2022

Courtesy of UBS Realty Investors LLC

Our research team gives answers to some of the key questions that real estate investors face, including: the evolution of prop tech and where we expect to see falls in values in office markets; whether the retail sector is finally bottoming and if the pandemic-ravaged hotel sector now presents some opportunities; if logistics will run out of steam and what impact sharp rises in construction costs have had on development margins; how real estate sits versus other asset classes and what strategies investors can follow should the outbreak of inflation prove asymmetric between countries.

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How to Fix Today’s Supply Chain Disruptions

Courtesy of Elion Partners

During the Future of Logistics & Retail virtual conference, Juan DeAngulo, Managing Partner at Elion, examined how technology, sustainability and emerging trends are reshaping demand and design for logistics real estate. As a follow-up to this interactive discussion, we would like to share with you Elion’s white paper on this timely and vital topic. “How to Fix Today’s Supply Chain Disruptions” examines the inefficiencies in the global supply chain and offers solutions for several fundamental issues including infrastructure upgrades, delivery and technology innovations, and onshoring.

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The Current State of Disruptive Construction Technologies

Courtesy of Virtus Real Estate Capital

Construction technology has been relatively stagnant for many decades compared to other, equally crucial sectors. This is true even at the “leading edge” of innovation, where modular technologies have promised to cut both project costs and timelines substantially, but they have yet to reach scale after decades of existence. However, the current moment shows evidence for both progress in existing approaches, as well as increasing diversity of nascent strategies for “industrializing” the production of buildings. These trends are accompanied by a parallel “prop-tech” revolution that promises to make all aspects of commercial real estate more efficient and exacting. Finally, the rising costs and regulations on conventional construction make the risks of innovation increasingly attractive. In this white paper, we make sense of this evolving landscape, tracing the current state of “new best practice” and the most likely trajectory future construction will take as both new technologies and business organizations form.

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Real Estate Outlook: EUR, Edition 4, 2021

Courtesy of UBS Realty Investors LLC

With inflation back with a vengeance and central banks set to raise rates over the next 12 months, investors can no longer depend on the buy and hold model to deliver strong returns. Capex and sustainability requirements are going to weigh ever more heavily on NOI, but with property yields at ultra-low levels there is little buffer should a downside scenario play out. The asset class can still deliver strong returns, but managers will need to work harder to create genuine value from their real estate investments.

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Real Estate Outlook: US, Edition 4, 2021

Courtesy of UBS Realty Investors LLC

US GDP has exceeded pre-pandemic levels, although cooling somewhat during third quarter. Continued healthy growth is anticipated into the new year. The apartment and industrial sectors continue to outperform and the retail sector is on the mend. However, office sector performance is causing concern.

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Real Estate Outlook: APAC, Edition 4, 2021

Courtesy of UBS Realty Investors LLC

APAC economies slowed in the third quarter. Apart from China, countries are now looking to contain COVID-19 rather than eradicate it. In office markets occupiers are adjusting to hybrid working arrangements, retail markets showed some signs of stabilization, while industrial and logistics showed rental growth across the region. Investment markets were strong, with yields mostly flat or falling.

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Why real estate investors can no longer overlook Canada

Courtesy of Manulife Investment Management

Manulife Investment Management believes for institutional investors with growing allocations to real estate, Canada’s growth prospects and disciplined investment markets may provide an opportunity for diversification and consistent, stable returns.

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Panorama: Investing in 2022

Courtesy of UBS Realty Investors LLC

Some real assets are already playing a role in addressing investors’ ESG concerns, so will the initiatives underway be an important value driver when thinking about the valuation and performance of real asset portfolios? Read what Darren Rabenou, Head of ESG Investment Strategies and Head of Food & Agriculture has to say in the latest edition of Panorama: Investing in 2022. This edition explores what building a more sustainable future means for investors, along with the persisting global supply chain and inflation challenges.

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Looking Ahead: Infrastructure Outlook for 2022

Courtesy of UBS Realty Investors LLC

The infrastructure sector continues to be resilient with robust performance across debt and equity. The sub-sectors worst hit by the pandemic are showing green shoots, recovering in line with the macro environment. We see some challenges to the economy around supply chain disruptions, inflation and rising infections. At the same time, we also see strengthening market and policy tailwinds around decarbonization and digitalization, which support performance and investment volumes.

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Real Estate Outlook: Global, Edition 4, 2021

Courtesy of UBS Realty Investors LLC

The economy slowed in the third quarter while inflation is proving higher and more persistent than originally expected. Real estate markets were strong, with global transaction activity back to pre-pandemic levels and falls in yields and cap rates reported across sectors. The industrial sector continues to outperform. The economy slowed in the third quarter while inflation is proving higher and more persistent than originally expected. Real estate markets were strong, with global transaction activity back to pre-pandemic levels and falls in yields and cap rates reported across sectors. The industrial sector continues to outperform.

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i3 Fundraising Report Q3/2021

Following a significant uptick in the second quarter, private equity infrastructure fundraising activity fell back to a more normal level in Q3/2021, according to the i3 fundraising database. Despite trailing Q2/2021, the third quarter still came in well ahead of Q3/2020.

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Understanding the Merits of Open-Ended Credit Fund Structures

Courtesy of Trawler Capital Management

While the institutional CRE LP universe finds comfort in historical familiarity with equity investment through closed-ended structures, the use of open-ended fund structures for credit investment can provide important benefits to LPs that are not readily obtainable in typical closed-end vehicles. This white paper focuses on such benefits and issues central to the alignment of interest between LPs and GPs thus driving optimal performance.

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The Future of Defined Contribution

Courtesy of Nuveen Real Estate

In this edition of next, we revisit our real estate allocation recommendations while examining how the sector fared during 2020 market volatility. We also analyze how plan sponsors can apply financial psychology and brand bias awareness training to their selection process. Next, we dive into the key provisions of the Securing Strong Retirement Act of 2021 (nicknamed SECURE Act 2.0) that is currently working its way through Congress. Finally, we evaluate the rapidly growing managed accounts within plans to see what benefits customization could bring to participants.

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Evolving Landscape for Liquidity within DC Plans

Courtesy of Defined Contribution Real Estate Council

Conventional wisdom within the Defined Contribution (DC) industry has held that DC plans must provide only investment options with daily liquidity. This paper will explore how an exclusive reliance on daily liquidity in DC investment options may be evolving alongside the changing DC environment. We will also consider how some types of assets with lower levels of liquidity have developed in ways that could potentially help meet the need for greater levels of diversification within DC plans.

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Placemaking: Seeking a Premium through Live-Work-Play

Courtesy of Hines

Over the past decade, the real estate industry has reimagined the way buildings and developments contribute to and enrich communities by creating a vibrant sense of place. The latest Hines Global Perspective Thought Paper examines the experiential transformation underway to meet the evolving needs of modern residents, office tenants and visitors. In today’s quickly changing world, the strength of placemaking is its ability to adapt to meet the changing needs of people.

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The Profile of Single-Family Renters and the Barriers to Homeownership that Got Them Here

Courtesy of The Amherst Group

In the wake of the Great Recession, the implosion of bank balance sheets and tightened credit policy that followed took down not only the economy but also, for many households, the prospect of owning a single-family home and achieving the lifestyle that comes with it. Although tightening credit boxes and more stringent underwriting standards are typical in post-recessionary mortgage markets, the extent to which credit has been restricted and the duration to which lack of access has persisted is vastly under-appreciated. A decade has elapsed since the Great Recession, yet tight credit access and a dearth of home construction —especially at affordable, entry-level price points—continues to exclude many families from homeownership. The institutional single-family rental (SFR) industry has sprung up to help fill this gap and provide hundreds of thousands of American families with access to the space, lifestyle, and location that they otherwise would not be able to access. Without a scaled SFR industry, the prospect of raising a family in a single-family home would remain out of grasp.

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Inside Real Estate: Annual Strategy Outlook for 2022

Courtesy of Principal Real Estate Investors

The real estate investment universe has emerged from the COVID-19 pandemic altered by a shift in human behavior. In the past two years we have changed the way we work, live, and play, which will affect how we think about and use commercial real estate going forward. The “DIGITAL” themes – Demographics, Innovation, Globalization, Infrastructure, And Technology – which we first highlighted in our annual strategy outlook for 2019 as future drivers of investment performance, have become more prevalent, heightened by the pandemic. In many ways, the commercial real estate market has been thrust into the future, which has presented a rapidly broadening opportunity set that spans well beyond the traditional property sectors. We believe those investors able to identify and step into this brave new world will find themselves at the forefront of growth and outperformance in commercial real estate in 2022.

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Housing Appreciation Seasonally Decelerates, While Rent Growth Continues to Climb, October 2021

Courtesy of The Amherst Group

The school year kicks off with robust housing price appreciation and more record-setting rent growth. Amherst’s Home Price Appreciation (HPA) Index shows prices continue to grow year-over-year (YoY) at a near-record, albeit slowing pace. This trend is consistent with the autumn growth patterns of prior years. In the for-lease market, the Amherst Rent Growth Index shows rent growth is steadfast in its upward summer trajectory as it reached yet another YoY record in September.

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Post-pandemic outlook for European real estate, November 2021

Courtesy of UBS Realty Investors LLC

At the start of the COVID-19 outbreak, the idea that core European real estate pricing would in many markets be higher in 18 months' time would have been almost unthinkable. But with governments pumping liquidity into the financial system, economies rapidly recovering and interest rates stable at record low levels, that is the situation we find ourselves in. This paper explores whether real estate pricing is getting too hot in some sectors, and where we still see opportunities in a highly competitive investment market.

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Urban Industrial in Europe: Lower risks, higher returns, November 2021

Marek Handzel, editor of Institutional Real Estate Europe

Urban logistics assets are generally utilised to provide the “last-mile” fulfillment for ecommerce operators. They have risen in importance due to ever-shortening delivery time expectations, as well as various new entrants to the market, such as grocery retailers. In addition to ecommerce, smaller-format units are generally favoured by traditional industrial operators as well. This has already translated into much higher rental growth for urban logistics when compared with their big-box peers. Data produced by Property Markets Analysis, shows that urban logistics rents were almost 40 percent higher in 2020 than they were in 2007 — while other logistics rents have not progressed much over the past decade.

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Global Investment Managers 2021 Euros

The global real estate industry continues to reach new heights post–global financial crisis. During the past decade, the asset class has gained in popularity across the globe, delivering steady income and solid returns in the ongoing low interest-rate environment. This year's survey, which captured 2020 figures from 212 investment managers, pegged total AUM at €3.81 trillion, an impressive increase from the 2010 total of €1.25 trillion. In addition, global AUM is up 12.9 percent from €3.67 trillion reported in last year's survey. The 2020 rankings include 10 firms with AUM greater than $100 billion, compared with eight firms last year. Only five short years ago, that exclusive club numbered only two — Brookfield Asset Management and Blackstone.

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Global Investment Managers 2021 USD

The global real estate industry continues to reach new heights post–global financial crisis. During the past decade, the asset class has gained in popularity across the globe, delivering steady income and solid returns in the ongoing low-interest rate environment. This year's survey, which captured 2020 figures from 212 investment managers, pegged total AUM at $4.65 trillion, an impressive increase from the 2010 total of $1.47 trillion. In addition, global AUM is up 12.9 percent from $4.12 trillion reported in last year's survey. The 2020 rankings include 10 firms with AUM greater than $100 billion, compared with eight firms last year. Only five short years ago, that exclusive club numbered only two — Brookfield Asset Management and Blackstone.

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ESG in infrastructure, October 2021

Courtesy of UBS Realty Investors LLC

ESG has moved from being a nice-to-have, to being an important part of infrastructure investing and can be used to drive action and outcomes. Today, the options for institutional investors to gain exposure to ESG have never been greater, with public markets seeing net new money into sustainable investment funds increase. In the following interview, Bronte Somes, Head of Infrastructure Equity Europe and Declan O’Brien, Head of Infrastructure Research & Strategy discuss ESG’s impact on infrastructure investing.

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The Decisive Eye, Autumn 2021

Courtesy of Principal Real Estate Investors

The DIGITAL (Demographics, Innovation, Globalisation, Infrastructure, Technology, Active over the Long-term) trends that have so profoundly impacted the U.S. and listed real estate markets are starting to exert their influence on Europe.

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Inflation & Real Assets, Navigating an Inflationary Environment with Real Assets

Courtesy of BlackRock

Real asset investors have been increasingly focused on inflation. In this paper, BlackRock discusses their views on inflation, whether it is transitory and where it will go. More importantly, BlackRock discusses the reasons why real assets may perform well in periods of higher inflation, and tools and strategies real assets investors should deploy in a higher inflationary environment.

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U.S. real estate can offer investors a balanced blend of benefits

Courtesy of Manulife Investment Management

In a world searching for yield opportunities, we believe that more investors are coming to appreciate the balanced mix of favorable characteristics that U.S. real estate can add to a diversified investment portfolio. In addition to sustainable income, the world’s largest commercial real estate market may also offer investors an attractive combination of resiliency and value.

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USAA Real Estate – Research Update, October 2021

Courtesy of USAA Real Estate

Since the onset of COVID-19, we have provided timely updates on the pandemic; however, given the strong progress of the U.S. vaccination program, many investors are now turning their attention to the future and focusing on a resumption of business as usual. While the markets will likely remain dynamic in their evolution around the pandemic, the following includes several of the issues we have contemplated recently that relate to the path ahead.

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Real Estate Outlook: APAC, Edition 3, 2021

Courtesy of UBS Realty Investors LLC

While the stuttering pandemic situation will weigh on near-term growth, the outlook for real estate in APAC is more sanguine. Demand for commercial real estate is expected to reverse into positive territory across most markets by the end of 2021. Investment activity in the logistics segment will be partly driven by the availability of quality stock. Investors could benefit from increased exposure to emerging segments.

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U.S.: Investing in the MiMis (Millennials & Middle Income Households)

Courtesy of Nuveen Real Estate

In 2019, we studied the income segments for renter households to ascertain the demographic driver for the multifamily industry. Since then, the country has endured an unexpected recession caused by a global pandemic, which has disrupted the economy but ultimately reinforced underlying trends. Despite recent market turbulence, this update to the original analysis continues to demonstrate that MiMis, or millennials and middle income households, will sustain demand for U.S. apartments in the coming decade. We define middle income households as those earning between 80% and 120% of area median income which is typically those earning between $45,000 and $75,000 per annum. These households comprise between 15% and 25% of each age cohort. Middle income households often have to rent out of necessity which creates consistent demand for apartments targeting middle income renters.

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Nuveen – Managing risk amid uncertainty with commercial real estate debt

Courtesy of Nuveen Real Estate

As the commercial real estate (CRE) sector enters a second year of the global pandemic, it’s no surprise investor surveys report a continued interest in CRE debt vehicles. Not a single investor wanted to reduce their exposure to debt according to the 2020 INREV/ANREV/PREA survey covering CRE debt vehicles. It also reported that more investors were spreading their exposure by using a combination of debt funds across North America, Europe and Asia Pacific. In a marketplace where managing risk has become increasingly important, that makes perfect sense. With uncertainty over the economic outlook remaining high, the appeal of private commercial real estate debt should continue to increase as investors pivot to investments that offer reliable cash flows and downside risk protection.

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The Pandemic Pitfall: Short-Term Forecasts Could Drive Mispricing in U.S. Office

Courtesy of MetLife Investment Management

In MIM’s prior report on the office sector, Back to Work: Office Demand in a Post-Pandemic World, they outlined their macro-level view of the potential impacts of COVID-19 on the office sector. Specifically, they outlined why they believe remote working will reduce office demand through 2021, but should have a limited long-term impact as many companies could reverse their remote workforce decisions in 2022 and beyond. With that premise – near term demand headwinds and a long-term reversion to growth – The Pandemic Pitfall outlines the markets that we think could offer attractively priced office properties that are experiencing temporary disruption. The report includes what we believe are the most relevant indicators of short and long term office demand today, some of which are intuitive, and some of which are not.

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Real Estate Outlook: Europe, Edition 3, 2021

Courtesy of UBS Realty Investors LLC

Economic recovery is well underway in Europe, although the Delta variant dampens some of the promise from the first half of the year. Investor sentiment is more resilient than the underlying occupier markets, but is heavily targeted towards the “beds, sheds and meds” sectors. We continue to expect stronger returns away from the most crowded part of the market, or through development targeting markets and sectors with the strongest occupational dynamics.

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Real Estate Outlook: Global, Edition 3, 2021

Courtesy of UBS Realty Investors LLC

Strong economic recovery, but Delta variant poses a threat. Office and retail sectors continue to have hardships, but more dynamic sub-segments have upside surprise factors. Post-pandemic pent-up demand is supporting the multifamily sector. Logistics continues to outpace expectations and is expected to have staying power.

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Principal – DIGITAL Employment Report August 2021

Courtesy of Principal Real Estate Investors

Employment rose during the second quarter of 2021 in 45 of the 48 real estate markets Principal tracks. Our “DIGITAL” sum of markets – those with key long-term growth drivers centered around DIGITAL (Demographics, Innovation, Globalization, Infrastructure, And Technology) – exceeded the national average during the past quarter. We still anticipate that many markets will fully rebound by 2023, with “DIGITAL” markets recovering quicker.

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The Future of Office: From Uncertainty to Opportunity

Courtesy of Barings Real Estate

Ryan Ma, CFA and Managing Director on Barings' real estate team, discusses three drivers that will shape office demand in the recovery ahead—the transition to a hybrid workplace, employment growth in STEM and creative industries, and the escalating war for talent—and sheds light on how a bifurcated future may offer opportunities for outperformance.

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Real Estate Alternatives: Changing the Role of Real Estate within an Institutional Portfolio

Courtesy of Nuveen Real Estate

During the next decade, we believe institutional real estate portfolios will transform as investors gain more familiarity with the alternative property types and start increasing their allocations to them. Before the alternative property types become a part and parcel component of institutional real estate portfolios, investors should consider adding the alternative real estate property types to their portfolios as a way to drive potential outperformance and to generate enhanced returns.

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Prologis – Logistics Real Estate: The Forces Governing Supply

Courtesy of Prologis

Our last paper explored the structural trends driving demand for prime logistics space. Given that demand will remain strong in the foreseeable future, our focus now turns to the implications for new supply. The transformation of logistics real estate development has followed a compelling trajectory. Clear insight into the structural forces that shape supply trends allows customers to better navigate scarcity and prepare for demand-side shifts.

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Principal – COVID-19 flight: No great migration but a catalyst to existing trends

Courtesy of Principal Real Estate Investors

The COVID-19 pandemic has uniquely affected workers as it forced millions into remote roles for the first time. Yet, despite the rise of telecommuting and advancements in digital communication over the past two decades, migration trends across the nation have actually been in decline after peaking in the 1980’s. We wonder: Has the COVID-19 pandemic reversed this secular trend or will it be a temporary black swan event?

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Prologis – Forever Altered: The Future of Logistics Real Estate Demand

Courtesy of Prologis

The global pandemic has forever altered the logistics real estate landscape: supply chain decisions have become more holistic, more data-driven and more urgent than ever. Underlying this shift are the same forces—urbanization, digitalization and demographics—that have changed the way we live, work and shop.This report aims to separate the transitory nature of human and company behavior during the pandemic from the real lasting forces that will continue to drive the supply chains of the future.

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The Benefits of Direct Real Estate in an Inflationary Environment, July 2021

Courtesy of USAA Real Estate

Our research indicates that real estate exposure has historically provided an effective hedge against inflation. In contrast, other traditional long-only investments such as stocks, nominal bonds, and even listed REITs tend to be negatively impacted during inflationary environments. Further, direct real estate exposure provides a strong total return profile relative to other alternative investments.

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U.S. Migration During a Pandemic: Moving Data Suggests Largest Impacts were within MSAs in 2020, June 2021

Courtesy of USAA Real Estate

Quantifies the impact on the pandemic in shifting movement within markets, as suburban areas benefitted from increased urban outflows in 2020. We expect this activity to revert closer to pre-pandemic levels as the economy reopens, and continue to monitor these trends closely. This piece also suggests that net migration across markets in 2020 was largely consistent with pre-pandemic trends, and headlines suggesting otherwise were often misleading.

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Construction Materials Shortages: Delayed Deliveries and Accelerating Rent Growth, June 2021

Courtesy of USAA Real Estate

Ongoing disruption is driving a shortage of raw building materials, resulting in increased input prices and extended lead times. Materials shortages are already resulting in development cost increases and project delays in the industrial sector. With the backdrop of surging demand for industrial space, the white paper evaluates concerns that construction material shortages could tap the brakes on construction activity. Competition for modern, well-located facilities combined with increased construction costs, suggests rents will continue to accelerate.

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Tackling the Shortage of Affordable Housing in California

Courtesy of Mosser Capital, LLC

This comprehensive white paper analyzes the current affordable housing shortage in the United States which focuses in on specific affordable housing dynamics in the California market. This overview highlights the lack of equity in affordable housing today and discusses the supply and demand dynamics that directly impact low income and diverse households. Mosser outlines several underlying causes for the affordable housing crises as well as provides solutions that can increase the level of equity in affordable housing going forward.

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UBS – Green News & Views: What’s the ESG in private equity?

Courtesy of UBS Realty Investors LLC

Over the last few years, the private equity industry has radically reassessed the importance and value of ESG to their businesses. ESG has shifted from being considered an area of just compliance, to an overarching framework that informs the strategic thinking of many private equity firms - creating value and giving firms a competitive edge. In this edition of Green News & Views, we explore how our Multi-Managers Private Equity business has integrated ESG throughout the entire investment lifecycle from sourcing, investment due diligence, to the ongoing monitoring and reporting on investments.

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The Red-Hot Housing Market Will Not Cool Down Overnight

Courtesy of The Amherst Group

In this report, we take a look at the current state of the U.S. housing market, specifically digging into the details of the growing imbalances in for-sale and for-lease inventory and what we expect to see in the coming years. While this is not a new story, the current disparities between supply and demand in both for-sale and for-lease markets have reached record highs. Some factors contributing to the acceleration of demand for single-family homes (like the pandemic) may go away, but even if supply increases and demand stabilizes tomorrow it may take 1-2 years to normalize inventory to 2018-19 levels. We expect the effects of these supply-demand imbalances will persist and only gradually reverse over time. It may be several quarters before we see more normal rates of growth in home prices and rents.

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Principal – The Fed shows its talons

Courtesy of Principal Real Estate Investors

At its meeting last week, the Federal Open Market Committee (FOMC) changed the Federal Reserve's forecast "dot plot" of short-term interest rate expectations, increasing the median forecast to two rate hikes in 2023 versus none in the last March meeting. Read about some implications for commercial real estate.

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UBS – Real Estate Outlook: Europe, Edition 2, 2021

Courtesy of UBS Realty Investors LLC

After a tough start to the year there are some causes for optimism for the European economy and real estate markets. The vaccine rollout is finally gathering steam, giving hope that some degree of normalization can be achieved in the second half of the year. Capital markets remain healthy, although in-demand sectors and assets are seeing heavy price inflation. Sourcing value will be a key challenge for the rest of 2021.

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UBS – Real Estate Outlook: US, Edition 2, 2021

Courtesy of UBS Realty Investors LLC

As summer approaches, we expect the US will make progress in the slow process of reopening. With that renewal, markets are starting to move again as well. By autumn, real estate investors should gain insight from increasing comparable leases and sales.

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UBS – Real Estate Outlook: Global, Edition 2, 2021

Courtesy of UBS Realty Investors LLC

Global real estate markets are still coming to terms with the economic fallout from the pandemic, but showed a strong performance in the first quarter, driven by the industrial sector. In Europe, the vaccine rollout is finally gathering steam, giving hope that some degree of normalization can be achieved in the second half of the year. In the US, markets are all starting to move, and investors should gain insight from increasing comparable leases and sales. While in APAC, growth prospects have been largely based on the resumption of global demand.

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Life Sciences Real Estate: Opportunity in the Midst of a Pandemic

Courtesy of Clarion Partners

Clarion Partners Head of Investment Research Tim Wang, Ph.D., examines purpose-built life sciences real estate (lab office), why it has been an outperforming alternative property sector, and how it is creating more prosperous U.S. cities. From demographic trends to exponential growth in healthcare spending and surging research funding, demand drivers continue to lead to robust occupancy and rent growth trends. Learn more about these and other factors influencing this shining light within commercial real estate, as well as several hot life sciences clusters to watch.

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Prologis – Forever Altered: The Future of Logistics Real Estate Demand

Courtesy of Prologis

The global pandemic has forever altered the logistics real estate landscape: supply chain decisions have become more holistic, more data-driven and more urgent than ever. Underlying this shift are the same forces -- urbanization, digitalization and demographics -- that have changed the way we live, work and shop. This report aims to separate the transitory nature of human and company behavior during the pandemic from the real lasting forces that will continue to drive the supply chains of the future.

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UBS – Top 5 factors, Integrating ESG in indirect infrastructure investment

Courtesy of UBS Realty Investors LLC

Sustainable infrastructure investments play a driving role in decarbonization, improving livelihoods and economies. For infrastructure investors, factoring in financially relevant sustainability information can lead to better investment decisions. Multi-Manager Infrastructure have outlined their top 5 factors to consider when integrating ESG in the investment process. Through integrating these 5 factors, the business can promote sustainable long-term growth which can benefit companies, investors and creates greater impact in the industry at large.

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UBS – Real Estate Outlook: US, Edition 1, 2021

Courtesy of UBS Realty Investors LLC

Increased transaction activity late last year reflects pent-up investor demand for real estate assets, with a clear preference for industrial and apartments as 2021 begins. We expect retail and office to continue to face headwinds even as the economy improves.

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UBS – Real Estate Outlook: Europe, Edition 1, 2021

Courtesy of UBS Realty Investors LLC

The European economy ends 2020 fairly battered and bruised as the second wave of the COVID-19 pandemic hit hard, both in terms of infections and the wider economy. Offices are showing some weakness on the occupier side, while retail continues to struggle. Logistics has been going from strength to strength, however, as have alternative sectors such as residential. Overall, capital markets remain buoyant as there is significant dry powder targeting real assets.

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PGIM – Global Data Centers

Courtesy of PGIM Real Estate

In this global report, PGIM looks at the underlying demand for data centers and examines how, based on current trends, the sector is set to grow significantly in the coming years.

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PGIM – Trends for 2021

Courtesy of PGIM Real Estate

PGIM's Investment Research team identifies the nine major occupier and investment trends expected to influence market conditions and investment performance in 2021 and beyond.

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Nuveen – Perspectives in today’s real estate market

Courtesy of Nuveen Real Estate

Learn more about the trends and themes shaping the real estate market today in Nuveen Real Estate’s latest commentary: Perspectives in today’s real estate market. Developed by Nuveen’s market leading research team, you’ll gain a deep dive into global, regional and sector trends and learn why we believe strategic allocation of real estate is the right choice for long-term investment benefit.

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Nuveen – Net zero carbon pathway

Courtesy of Nuveen Real Estate

Climate change poses a complex set of investment risks and opportunities for real estate portfolios. Nuveen Real Estate’s net zero carbon pathway highlights our robust framework for anticipating, evaluating and addressing issues before value corrections erode financial performance.

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Principal – The Decisive Eye, Spring 2021

Courtesy of Principal Real Estate Investors

Are real estate investors already invested in infrastructure? While optimism mounts and recovery begins, the ever-present challenges for long-term investors remain—the need for income, portfolio diversification and capital growth. Read more in Principal's newest issue of The Decisive Eye.

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Prologis – Forever Altered: The Future of Logistics Real Estate Demand

Courtesy of Prologis

The global pandemic has forever altered the logistics real estate landscape: supply chain decisions have become more holistic, more data-driven and more urgent than ever. Underlying this shift are the same forces—urbanization, digitalization and demographics—that have changed the way we live, work and shop. This report aims to separate the transitory nature of human and company behavior during the pandemic from the real lasting forces that will continue to drive the supply chains of the future.

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Principal – Interest rates are rising, should real estate be concerned?

Courtesy of Principal Real Estate Investors

Capital markets are increasingly penciling in a higher interest rate scenario as reflected in a sharp steepening in the Treasury yield curve over the past 30 days. The yield on the 10-year bond has increased by 40 bps over the past 30 days. Capital markets anticipate a continued increase in benchmark 10-year yield, which has resulted in elevated volatility in public risk assets as well as growing questions on appropriate risk premia from illiquid investments. What does this mean for real estate? How will the different property types respond?

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UBS – Real Estate Outlook: Global, Edition 1, 2021

Courtesy of UBS Realty Investors LLC

The rollout of vaccines gives rise to cautious optimism that the economy will improve in the second half of the year as lockdowns can be lifted. Real estate investment activity has shown some pick-up but remains below pre-pandemic levels. Logistics property remains the focus for the main commercial sectors, with interest in niche and specialist real estate types being driven higher.

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UBS – Themes and Forecasts: US – Real Estate Outlook 2021

Courtesy of UBS Realty Investors LLC

The economic disruption caused by the pandemic brings new and unique opportunities for US real estate investors. Some weakness should persist into 2021 as effects from the pandemic and 2020 recession ripple through society and the economy. As the year progresses, positive news on vaccine distribution, competitive lending markets, and fiscal stimulus should support a meaningful rebound in economic growth and a turnaround in aggregate real estate performance.

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Principal – US Real Estate Sector Report

Courtesy of Principal Real Estate Investors

We are excited to share our new bi-annual sector report featuring insights from investment professionals across all four real estate quadrants and providing current conditions and outlooks for all of the core real estate sectors, as well as emerging sectors such as data centers and life sciences.

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UBS – Real Estate Outlook – Edition 1, 2021

Courtesy of UBS Realty Investors LLC

Real estate investment activity has shown some pick-up but remains below pre-pandemic levels. The retail and office sectors continue to face headwinds even as the economy improves, while logistics remains the focus for the main commercial sectors. Investors should remain on the lookout for tactical opportunities arising from the pandemic.

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Principal – Europe Real Estate Sector Report

Courtesy of Principal Real Estate Investors

The long shadow of COVID-19 continues to impact Real Estate everywhere, not least in Europe where vaccination programmes have had a rocky start. However, as we reveal in our new bi-annual European Real Estate Sector Report, not all sectors have been impacted in the same way as we highlight in the latest edition.

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2020 Prologis Logistics Rent Index: Resilience Tested

Courtesy of Prologis

Introduced in 2015, the Prologis Logistics Rent Index examines trends in net effective market rental growth in key logistics real estate markets in North America, Europe, Asia and Latin America. Our proprietary methodology focuses on taking rents, net of concessions, for logistics facilities. To create the index, Prologis Research combines the company’s local insights on market pricing dynamics with data from our global portfolio. Rental rates at the regional and global levels are weighted averages based on estimates of market revenue.

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Antifragility of Real Estate Investments in a World of Fat-Tailed Risk

Courtesy of Principal Real Estate Investors and
the University of San Diego School of Business
and the Burnham-Moores Center for Real Estate

Investors have sought to add real estate to their multi-asset portfolios due to the lower volatility, higher component of total return from income, diversification and tangible nature associated with real estate relative to other assets generally. Real estate is often seen as defensive in this regard. Exogenous shocks or Black Swan events, such as Covid-19, are by definition, ‘unknowable’ with respect to occurrence and consequence and therefore susceptible to the limitations of statistical models, a priori. This paper examines real estate investing, not just from whether it is defensive, but whether it has antifragility characteristics. Antifragility refers to an investment that is not only robust to exogenous shocks but benefits from such shocks. We show from first principles and from empirical data that real estate has antifragility and warrants higher allocations to multi-asset portfolios for this reason.

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UBS – Set to grow, the rise of the European multifamily sector

Courtesy of UBS Realty Investors LLC

Real estate investor interest for European multifamily assets has been growing continuously in the last decade. In UBS's view, resilient income-driven performance, supported by strong occupier market fundamentals and long-term socio-demographic trends, will continue to fuel the rise of this asset class in the coming years.

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UBS – Embracing change, the future of the office sector

Courtesy of UBS Realty Investors LLC

In this paper, UBS examines how office space will continue to add value to employees and employers after the current health situation has subsided. The post-COVID-19 future will be characterized by technological advances and organizations determining the right balance of remote work to advance their organizational priorities rather than one that sees a move toward an office-free world. Core and value-add office strategies which follow the three investment principles of purpose, accessibility and ESG, can provide good opportunities.

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UBS – Growing a greener world with farmland

Courtesy of UBS Realty Investors LLC

Sustainable farmland practices play a vital role in reducing greenhouse gas emissions as well as conserving energy and water. It can also help to meet global demand for food, while encouraging sustainable practices benefiting the environment over the long-term. Investors, tenants, local operators and farm managers, should foster sustainability best practices, while respecting the land rights and the communities in which they operate for a greener and more sustainable future for us all.

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FundTracker TrendWatch 01-22-21

According to IREI's FundTracker database, the COVID-19 pandemic may have finally affected fundraising. Preliminary fourth quarter 2020 numbers show only 14 funds closed and only $13.48 billion in capital raised, the lowest fundraising total since first quarter 2013.

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Data Center Frequently Asked Questions

Courtesy of National Real Estate Advisors

Over the past two decades, the data center sector has emerged from relative obscurity in many investing circles to become a key topic of conversation. The sector's popularity was put to the test throughout 2020 and 2021 with the onset of COVID-19. The stress test resulted in proof that the investment space appears to be a resilient one, worthy of additional attention and due diligence. With this acknowledgment comes questions that those investing in real assets should consider as they review the merits of new and additional investments in the data center space.

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Prologis – Logistics Real Estate and E-Commerce Lower the Carbon Footprint of Retail

Courtesy of Prologis

With e-commerce setting records during the 2020 holiday season and package deliveries forecast to grow by 80% over the next decade, a new study by the MIT Real Estate Innovation Lab reveals the tangible environmental benefits of online shopping. Driven by the stay-at-home economy, online retailing surged and remained at peak levels throughout 2020. Early estimates suggest U.S. online sales grew by upwards of 50% (y/y) in 2020’s expanded holiday shopping season, with similar trajectories in other major e-commerce markets including China, Europe, Japan and elsewhere. Using average emissions results from the MIT study, the share shift to e-commerce resulted in approximately 2.4% fewer emissions per package.

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Prologis – Automation and Logistics Real Estate #2: How Automation Can Help Navigate Urgent Supply Chain Challenges

Courtesy of Prologis

The growth of e-commerce over the past decade has demonstrated just how critical logistics real estate is to our customers’ revenue generation. Increasingly, logistics users must have the right location and the right building equipped with the right features in order to tap into the power of today’s evolving supply chain as a source of competitive advantage. Automation has the ability to unlock this potential in a big way. The logistics real estate sector has been facing shortages on two key fronts: a shortage of skilled labor and of well-located logistics space. Compounding this is the severe capacity crunch in last mile delivery -- shippers and parcel delivery companies cannot handle more packages and are turning away business. Increasingly, customers recognize that automation can help address these issues, and those that do not act now are getting left behind. In examining the tie between real estate and automation in customer operations, we identified four key takeaways.

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FundTracker TrendWatch 12-08-20

According to IREI's FundTracker database, preliminary fourth-quarter numbers show only four fund closings thus far, raising approximately $4.6 billion. There are 18 more funds in the FundTracker database targeting a close by year-end 2020. However, even if all 18 funds close by Dec. 31, fourth quarter 2020 could produce the lowest quarterly fundraising total since fourth quarter 2011.

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UBS – Infrastructure Outlook, Key Themes for 2021

Courtesy of UBS Realty Investors LLC

As we approach the end of 2020, the infrastructure sector looks to have weathered the COVID-19 crisis reasonably well. While certain sub-sectors were severely impacted, 1Q20 valuations for the sector were more resilient than other alternative asset classes and infrastructure companies saw fewer downgrades and defaults than their equivalent corporates. With a vaccine in sight, policy makers will continue to focus on how to support the economy in the interim, while fiscal stimulus looks like an attractive proposition. Government spending is likely to be directed towards supporting jobs while also investing in healthcare, decarbonization and digital infrastructure, potentially providing a boon for infrastructure investors.

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UBS – Top 10 real estate questions for 2021

Courtesy of UBS Realty Investors LLC

When we looked ahead to 2020, back in early December 2019, we have to confess that we did not even mention COVID-19, let alone foresee the massive impact that this new virus would have on the world. However, some of the predictions we made then have proved prescient. In our latest Top 10 real estate questions, we explore how the year developed and provide our predictions on real estate for 2021.

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Prologis – Automation and Logistics Real Estate #1: The State of Automation in Supply Chains

Courtesy of Prologis

Automation has the power to revolutionize logistics operations. As capabilities expand alongside declining costs, faster returns on investment (ROIs) are fueling adoption. Three trends are aligning to drive higher levels of automation within our facilities. First, COVID has led to greater absenteeism, further stressing labor availability. Second, technology continues to improve, expanding capabilities and reducing costs. Third, labor-intensive operations, specifically e-commerce, are growing quickly. These users benefit greatly from this technology and are leading adopters. This dramatic transformation cannot be overstated: What was expected to take years to gain traction is occurring in mere months. As a result, some logistics customers are making significant investments in automation. In this report, the first in a series, we examine the current state of warehouse automation, how it is changing, and impacts on desired building features.

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UBS – US Annual Real Estate Outlook 2020, Edition 4

Courtesy of UBS Realty Investors LLC

A widespread rise in virus cases threatens the economic recovery, though positive news on vaccine trials points to brighter prospects for 2021. Investment activity remains subdued and real estate capital value movements have varied by sector, showing small falls at the all property level in the third quarter. So far there is limited distress in the market, but we do expect some investment opportunities to be generated.

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UBS – US election and the impact on infrastructure

Courtesy of UBS Realty Investors LLC

Under a Biden presidency, the next wave of infrastructure investments will have greater emphasis on ESG issues. The extent of this will depend on the outcome of the Senate race, although historically, there is more bipartisan support for clean energy than headlines suggest. Private infrastructure funds, equipped with USD 200 billion of dry powder, will likely play an important role, especially given government budget constraints.

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FundTracker Trendwatch 10-20-20

According to IREI's FundTracker database, while preliminary data for the third quarter indicates a drop-off from the previous quarter ($43.4 bilion was raised by funds closing in the second quarter), it is actually an increase on a year-over-year basis. The $20.7 billion raised by funds that closed in third quarter 2020 exceeds the $19.9 billion raised by funds that closed in third quarter 2019.

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California’s Central Valley: Land of affordability, growth and opportunity

September 2020 - The Central Valley is California’s fastest-growing and most-affordable region. The area’s economy is fueled by three large, recession-resistant economic sectors: government (including the nation’s second-largest government center, Sacramento), healthcare and agriculture. Based on projected future economic and population growth — as well as higher cap rates — the Central Valley is a classic example of a secondary market that is in the early stages of transitioning away from local and regional ownership to a larger base of institutional owners. This report by Institutional Real Estate, Inc. titled California’s Central Valley: Land of affordability, growth and opportunity, looks at the opportunity in California’s Central Valley, where investors can tap into the region’s growth story and still find markets and properties that offer significantly higher risk-adjusted returns.

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Life Sciences: Expanding life sciences industry creates opportunity for real estate investors

August 2020 - The life sciences property sector has flourished during the past few years and that trend is expected to continue in the near term and well into the future. The sector’s positive property fundamentals have been fueled by record-setting life sciences industry capital infusions, creating growth and additional demand for office, R&D, lab space and other related facilities. Investors are increasingly recognizing the benefits — strong property-level fundamentals, portfolio diversification, value-add opportunities — of investing in life sciences properties in well-established and emerging clusters across the United States. This report by Institutional Real Estate, Inc. titled Life Sciences: Expanding life sciences industry create opportunity for real estate investors, looks at the opportunity in the expanding life sciences sector, the increase in employment rates, investor opportunity in life sciences and more.

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Global Investment Managers 2020 USD

The aggregate AUM of the top 100 real estate largest investment managers increased by 9.1 percent, totaling more than $3.83 trillion, according to Global Investment Managers 2020, the annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. For some perspective, at year-end 2008, the aggregate AUM of the top 100 investment managers totaled $1.2 trillion. A total of 207 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of nearly $4.12 trillion. The top 10 largest investment managers accounted for $1.35 trillion of AUM, which represents 32.6 percent of the total. The 2020 report, based on 2019 AUM figures, showed eight investment managers with assets of more than $100 billion, up from only three in 2017. The eye opener is the fact that there are two investment managers with assets of more than $200 billion.

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Global Investment Managers 2020 Euros

The aggregate AUM of the top 100 largest real estate investment managers increased by 9.1 percent, totaling more than €3.41 trillion, according to Global Investment Managers 2020, the annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. For some perspective, at year-end 2008, the aggregate AUM of the top 100 investment managers totaled €85 billion. A total of 207 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of nearly €3.67 trillion. The top 10 largest investment managers accounted for €1.2 trillion of AUM, which represents 32.6 percent of the total. The 2020 report, based on 2019 AUM figures, showed four investment managers with assets of more than €100 billion, up from only three in 2017. The eye opener is the fact that there are two investment managers with assets of more than €150 billion.

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Prologis – Logistics Real Estate: Sizing the Retail Conversion Opportunity

Courtesy of Prologis

Crisis precipitates change. COVID-19 has brought more than five years of evolution in the retail landscape into less than five months of time. Increased demand for high quality and infill logistics real estate is on the rise, stemming from the accelerated adoption of e-commerce and just-in-case inventory. In contrast, challenges have become more pronounced for retail real estate. Collectively, these changes have prompted retail owners to explore the opportunity to convert retail space for distribution uses. Prologis Research sized this trend to measure the potential implications for our industry.

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FundTracker TrendWatch 09-01-20

According to IREI's FundTracker database, more than 200 infrastructure investment funds are currently seeking capital. Nearly two-thirds of those funds have global or Europe-focused strategies.

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UBS – US Annual Real Estate Outlook 2020, Edition 3

Courtesy of UBS Realty Investors LLC

Economies have seen the sharpest contractions on record while massive central bank and government intervention has supported asset prices. In real estate the crisis has turbo-charged trends we were already seeing prior to the crisis, boosting logistics and hurting retail. We are now in the social-distancing phase, but investors need to think long-term and position themselves for once the pandemic has passed.

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FundTracker TrendWatch 07-28-20

According to preliminary data from IREI's FundTracker database, infrastructure fundraising in second quarter 2020 fell considerably compared to first quarter, with eight funds raising more than $13 billion in the second quarter. In First quarter, 14 funds raised more than $39 billion and in fourth quarter 2019, eight funds closed on more than $41 billion.

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FundTracker TrendWatch 07-21-20

According to IREI's FundTracker database, preliminary numbers indicate real estate investment funds closing in second quarter 2020 raised the highest second quarter total since second quarter 2008 and the highest overall quarterly total since first quarter 2019's record-setting $63.7 billion.

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UBS – Logistics post-COVID

Courtesy of UBS Realty Investors LLC

This paper explores the impact of COVID-19 on both the industrial sector and European distribution networks. UBS leverages a variety of economic and high frequency indicators to see how the demand for logistics real estate may evolve in the coming years.

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Global Outlook: Real Estate During a Crisis

Courtesy of PGIM Real Estate

The outbreak of COVID-19 has quickly translated into a severe shock for the global economy and real estate markets. Near-term indicators of performance have turned sharply downward, and the situation is fast-moving. At the same time, some lessons for what is to come can be drawn from past downturns, although causes and effects are, as always, different this time. Values are set to remain under pressure in the near term owing to stress in occupier and investment markets — and the range of possible outcomes is wide — but there are some reasons for optimism.

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Asia Pacific Outlook 2020: Real Estate During a Crisis

Courtesy of PGIM Real Estate

The outbreak of COVID-19 has quickly translated into a severe shock for the global economy and real estate markets. Near-term indicators of performance have turned sharply downward, and the situation is fast-moving. At the same time, the Asia Pacific region is set to lead a global recovery, and while real estate occupier and investment markets are under near-term pressure, a significant opportunity set is expected to emerge.

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UBS – US Annual Real Estate Outlook 2020, Edition 2

Courtesy of UBS Realty Investors LLC

No property type is immune to uncertainty and financial impact. A great deal of uncertainty remains around the reopening and recovery of the US economy, a process that is likely to be extended over time rather than a quick rebound to pre-downturn economic levels.

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UBS – COVID-19 European Office Markets Series, Edition 3

Courtesy of UBS Realty Investors LLC

Deal flow has returned to most European markets, but heavily focused towards the core end of the risk spectrum. Pricing in this segment of the market appears to be holding up, but discounts expected as assets move up the risk curve. Historically low leverage levels should help prevent forced sales. But rising costs of new lending may stifle a recovery in activity and place outward pressure on yields.

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FundTracker TrendWatch 05-19-20

According to IREI's FundTracker database, investors have favored the relatively safe markets of North America and Europe during the past 12 months, with global funds accounting for just 14 percent of the capital raised by funds closing in that period.

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Back to Work: Office Demand in a Post-Pandemic World

Courtesy of MetLife Investment Management

We believe that forecasting the effects of COVID-19 on office demand requires the consideration of four factors. These include [1] the number of workers who will permanently begin working from home full time, [2] the number of workers who will adopt flexible schedules such as working from home one or two days per week, [3] how firms will change space needs as a result of flex working, and [4] how firms will change layouts to be better prepared for future pandemics.

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AEW Research – 2020 Global Strategy Perspective

COURTESY OF AEW

As we start the third decade of the 21st century, it is an opportune time to take stock of real estate markets around the world. Despite the aftershocks of the global financial crisis, most investors have taken advantage of real estate opportunities outside their home markets. At AEW we have been working with international investors for nearly 40 years. In this report, we share our perspective on global investment markets, considering both global trends and occupier market trends.

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UBS – COVID-19 European Office Markets Series, Edition 2

Courtesy of UBS Realty Investors LLC

Limited current and future supply levels will limit the decline in prime office rents in the short term. But the economic challenges are likely to lead to headcount reductions, with corporates vacating unutilized space. This trend could be accelerated, if as we expect, corporates adopt higher levels of flexible working in a post COVID-19 world.

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UBS – US office real estate market – What happens next?

Courtesy of UBS Realty Investors LLC

UBS believes it is too early to write the epitaph for the entire office sector as there are a number of counterbalancing forces at work. However, the realities are that landlords, companies and tenants alike will all be forced to improvise, adapt and overcome a number of challenges in the post COVID-19 world.

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UBS – COVID-19 European Office Markets Series, Edition 1

Courtesy of UBS Realty Investors LLC

Disruption to office occupiers is not as significant as other sectors. But a protracted downturn will hurt revenue streams and lead to a spike in defaults. Serviced office providers are, however, facing very immediate impacts to their cash flows. Will they be able to survive long enough to benefit from any structural shifts longer term?

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UBS – US Annual Real Estate Outlook 2020, Edition 1

Courtesy of UBS Realty Investors LLC

It's an election year. Economic growth lost some steam. Interest rates remain low. Our US Real Estate Outlook 2020 outlines where we see solid fundamentals and uncovers pockets of uncertainty. Find out what we expect for the four property sectors in the new year, including strategic themes to guide investment decisions in private real estate.

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FundTracker TrendWatch 04-28-20

According to IREI's FundTracker database, preliminary data shows infrastructure fundraising in first quarter 2020 nearly matched fourth quarter 2019, with 14 funds raising more than $39 billion. In fourth quarter 2019, eight funds raised more than $41 billion. Nearly twice the number of funds closed in first quarter 2020 but raised a similar amount of capital as was raised in fourth quarter 2019.

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FundTracker TrendWatch 04-21-20

According to IREI's FundTracker database, preliminary data shows the number of real estate funds closing are down to 22 in first quarter 2020, compared with 35 funds in the first three months of 2017. Many funds were closing when the COVID-19 pandemic was just reaching the U.S., but the pandemic doesn't seem to have skewed the numbers too much as of now.

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FundTracker TrendWatch 03-03-20

According to IREI's FundTracker database, infrastructure funds are continuing to increase in size, fueled by the emergence of the ultra-mega-fund. At the same time, it took a bit longer for the average 2019 infrastructure fund to close than the average 2018 fund.

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FundTracker TrendWatch 02-18-20

According to IREI's FundTracker database, mega-funds have grown exponentially during the past three years, while non-mega funds have remained relatively stable. Although the average mega-fund reaches the final closing a bit faster than the average non-mega fund, all funds are closing in about 17 months, on average.

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FundTracker TrendWatch 01-21-20

According to IREI's FundTracker database, after a record-setting start to the year, fundraising fizzled in the second half of 2019. Preliminary data shows fundraising totaled $119.2 billion for the last year.

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Invesco Real Estate – Considerations for investing in global real estate

Courtesy of Invesco Real Estate

Invesco Real Estate presents, "Considerations for investing in global real estate." Many investors are familiar with the appeal of holding real estate. With a generally low correlation to other asset classes, it can serve as an instant diversifier in a mixed-asset portfolio. Historically, real estate has delivered strong relative performance across multiple cycles compared to other asset classes, and its characteristic stable income, underpinned by long-term leases, makes it a compelling alternative to traditional fixed-income instruments. Participation in real estate from the investor community is one of the highest among the various alternatives asset classes, and is expected to grow in importance in portfolio allocations moving forward.

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AEW Research – European Real Estate Debt – September 2019

COURTESY OF AEW

The AEW European Research & Strategy team are pleased to present our September 2019 quarterly research report, “European Real Estate Debt”, where the European Research & Strategy team takes a closer look at all-in interest rates and loan margins available to investors, as based on our new granular loan-by-loan database. The results of our new commercial real estate interest rate model and its key drivers are being discussed. The lender perspective is also considered by looking at historical loan defaults and losses to ensure that current margins are sufficient to cover these.

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AEW Research – European Factor Investing 2019 – June 2019

COURTESY OF AEW

The AEW European Research & Strategy team are pleased to present our June 2019 quarterly research report, “Factor Investing 2019”, where the European Research & Strategy team have applied Factor Investing to nearly 40 European office markets. Factor Investing identifies multiple factors that drive excess returns compared to any market portfolio. This so-called smart beta strategy uses factors such as volatility, liquidity, quality, value, yield and growth. Finally, we compare factor investing to the traditional core and value add investment styles.

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AEW Research – 2019 European Annual Outlook

COURTESY OF AEW

The AEW European Research & Strategy team are pleased to present the 2019 European Annual Outlook. In this forward looking report, we present our outlook for the European commercial real estate markets for 2019 and beyond. As many European markets move into the later stages of the cycle, we launch our new risk-adjusted return approach to help meet the increasing challenges investors will face.

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FundTracker TrendWatch 10-10-19

According to IREI’s FundTracker database, decline in real estate fund closings is taking a more dramatic downturn with approximately 16 funds closing in third quarter 2019, compared to 23 funds in second quarter 2019 and 28 in first quarter 2019.

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FundTracker TrendWatch 09-03-19

According to IREI’s FundTracker database, close to 200 infrastructure funds are currently open for investment. Europe and Global/Multi-regional strategies combine for approximately 60 percent of those funds, but other regions are also seeing a fair amount of activity.

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FundTracker TrendWatch 08-20-19

According to IREI’s FundTracker database, there are approximately 800 real estate investment funds currently seeking capital. Slightly more than half are closed-end funds, with the rest being open-end or semi-open funds.

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FundTracker TrendWatch 07-23-19

According to IREI’s FundTracker database, infrastructure investment managers closed nine funds in Q2 2019, raising nearly $16.3 billion. Our preliminary data finds that fewer funds are raising less capital compared to Q2 2018, when 15 funds held final closings, raising more than $19 billion.

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FundTracker TrendWatch 07-16-19

According to IREI’s FundTracker database, roughly $17.4b was raised in Q2 2019, based on preliminary data. Thanks to a number of large mega-funds, record fundraising activity was registered in Q1 2019, which will likely push first-half 2019 volume to a record high once final Q2 data is available.

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Global Investment Managers 2019 USD

The aggregate AUM of the top 100 largest real estate investment managers totals nearly $3.48 trillion, according to Global Investment Managers 2019, the annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. For some perspective, at year-end 2008, the aggregate AUM of the top 100 investment managers totaled $1.2 trillion. A total of 206 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of more than $3.7 trillion. The top 10 firms in this year’s rankings totaled more than $1.2 trillion of AUM — a 6.1 percent increase from last year — a total that represents 33.5 percent of the entire survey universe. Additional evidence of a concentration of assets in this top-heavy industry: the top 20 firms account for AUM of $1.865 trillion (49.6 percent of the total universe), which is nearly as much as the other 186 investment managers in the survey ($1.892 trillion).

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Global Investment Managers 2019 Euros

The aggregate AUM of the top 100 largest real estate investment managers total nearly €3.04 trillion, according to Global Investment Managers 2019, the annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. For some perspective, at year-end 2008, the aggregate AUM of the top 100 investment managers totaled €0.85 trillion. A total of 206 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of more than €3.23 trillion. The top 10 firms in this year’s rankings totaled more than €1.07 trillion of AUM — a 6.1 percent increase from last year — a total that represents 33.5 percent of the entire survey universe. Additional evidence of a concentration of assets in this top-heavy industry: the top 20 firms account for AUM of €1.628 trillion (49.6 percent of the total universe), which is nearly as much as the other 186 investment managers in the survey (€1.654 trillion).

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FundTracker TrendWatch 06-04-19

According to IREI’s FundTracker database, more than half the capital raised by infrastructure funds reaching a final close during the past three years, the past 12 months and YTD 2019 went to global or multi-regional strategies.

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FundTracker TrendWatch 05-21-19

According to IREI’s FundTracker, global/multi-regional funds are leading the fundraising pack, accounting for more than 70 percent of the capital raised by funds reaching a final close year-to-date 2019.

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Asia Pacific in 2019: watch for risks and opportunities

Courtesy of Nuveen Real Estate

January 2019 — After 10 years of relatively unabated economic strength, the region looks to be stuttering. However the softer economic environment does not come as a surprise; mid last year we flagged a potentially slower growth trajectory for the Asia Pacific region in the latter half of 2018. Among the reasons we cited trade tensions exacerbating weakness in China’s economic slowdown, tighter financing conditions from rising global interest rates, and the related pass-through into weaker domestic demand. However, it is the depth and breadth of the potential slowdown that should currently worry global institutional investors. To be sure, regional growth has slowed in the past few months, but the outlook remains cloudy at best if recent equity market performance is any guide.

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FundTracker TrendWatch 03-05-19

The average size of an infrastructure private equity fund increased slightly in 2018 — to $2.0 billion — but the average closing time decreased to 17.1 months compared with 20.7 months in 2017.

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U.S.: Investing in the MiMis (Millennials & Middle Income Households)

Courtesy of Nuveen Real Estate

November 2018 — We believe MiMis, or millennials and middle income households, will continue to drive demand for U.S. apartments in the coming decade. We define middle income households as those earning between 80% and 120% of area median income which is typically those earning between $45,000 and $75,000 per annum. These households comprise between 20% and 35% of each age cohort. Middle income households often have to rent out of necessity which creates consistent demand for apartments targeting middle income renters. Millennials are the largest generation on record and like the Baby Boomers before them, they will reshape the economy and many industries as they heavily consume goods and services, including housing. Millennials compose 35% of the workforce and their contribution to the U.S. economy continues to grow. In this analysis, we define the millennial generation as those born between 1981 and 1998. Furthermore, we divide the millennials into older millennials (OMs) and younger millennials (YMs) cohorts.

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FundTracker TrendWatch 12-18-18

The ever expanding size of funds in infrastructure markets is a trend that isn’t likely to end anytime soon. In fact, the definition of mega-funds — those funds with final closes of $2 billion or more — might need to be updated to reflect funds that are increasingly targeting $10s of billions in capital commitments.

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FundTracker TrendWatch 9-25-18

According to IREI’s FundTracker database, 288 infrastructure investment funds are currently marketing. Of those, 37 are open-end, six are semi-closed-end (having a long but finite fundraising period), and the remaining are closed-end.

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FundTracker TrendWatch 9-11-18

According to the IREI FundTracker database, there are 336 open-end funds, 460 closed-end funds and 36 semi-closed end (has a 7- to 10-year fundraising window) funds currently soliciting capital.

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FundTracker TrendWatch 8-21-18

According to IREI’s FundTracker database, infrastructure mega-funds have accounted for 76 percent of the capital raised, as of Aug. 1, 2018. In addition, more mega-funds have already closed YTD than in any of the past five years.

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Global Investment Managers 2018 USD

The aggregate AUM of the top 100 largest investment managers increased by 15.8 percent in 2017, totaling more than $3.2 trillion, according to Global Investment Managers 2018, the annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. For some perspective, at year-end 2008, the aggregate AUM of the top 100 investment managers totaled $1.2 trillion. A total of 197 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of nearly $3.5 trillion. The top 10 largest investment managers accounted for $1.154 trillion of AUM, which represents 33.2 percent of the total. This group of managers saw their AUM increase 11.2 percent from year-end 2016. The 2017 report, based on 2016 AUM figures, showed only three investment managers with assets of more than $100 billion. In this year’s rankings, six firms eclipsed the $100 billion mark.

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Global Investment Managers 2018 Euros

The aggregate AUM of the top 100 largest investment managers totaled more than €2.71 trillion, according to Global Investment Managers 2018, the annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. For some perspective, at year-end 2008, the aggregate AUM of the top 100 investment managers totaled €1.44 trillion. A total of 197 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of nearly €2.90 trillion. The top 10 largest investment managers accounted for €961.5 billion of AUM, which represents 33.2 percent of the total. This group of managers saw their AUM increase 11.2 percent from year-end 2016. The 2017 report, based on 2016 AUM figures, showed only three investment managers with assets of more than €80 billion. In this year’s rankings, six firms eclipsed the €80 billion mark.

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FundTracker TrendWatch 7-17-18

According to IREI’s FundTracker database, infrastructure fundraising is on pace to have a very good year. If the second half proves as positive as the first, it could even be a record year.

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FundTracker TrendWatch 7-3-18

According to the FundTracker database, real estate investment fundraising in the first half of 2018 is tracking well ahead of the first half of 2017 and 2016. If fundraising continues at the same pace it has in  previous years, total commitments in 2018 could top those of the record-setting 2015.

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FundTracker TrendWatch 6-19-18

In 2016, 16 percent of the infrastructure funds reaching a final closing were debt funds. Last year, that percentage fell to 7 percent. When looking at capital raised, 2016 saw 8 percent of the total capital coming from debt funds. In 2017, that total fell to 5 percent. The trend looks to be continuing into 2018.

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The REIT Cap Rate Perspective

Courtesy of CenterSquare Investment Management LLC

March 2018 — CenterSquare’s REIT Cap Rate Perspective presents the market pricing of $1.5 trillion of real estate in the U.S. REIT market, seeking to quantify the valuation gap between public and private markets. While at times the disparity may be temporary or driven by short term volatility, the forward discounting inherent in public markets can also offer investors insights as to the possible future direction of real estate values. In this report, CenterSquare shares their proprietary REIT implied cap rate results at the sector and geographical level on a quarterly basis.

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FundTracker TrendWatch 6-5-18

According to the IREI FundTracker database, real estate investment funds with a debt component accounted for 28 percent of the funds reaching final close in 2017, up from 2016’s 22 percent share. They also accounted for 44 percent of the capital raised in 2017, versus 32 percent in 2016.

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FundTracker TrendWatch 5-15-18

According to the IREI FundTracker database, investors are showing a strong preference for regionally focused funds, with global funds continuing to raise less capital than other strategies.

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FundTracker TrendWatch 5-8-18

According to IREI’s FundTracker database, global funds account for 41 percent of the capital raised YTD 2018 in funds reaching a final closing. In 2017, global funds accounted for only 18 percent of the capital raised.

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FundTracker TrendWatch 4-17-18

According to the IREI FundTracker database, private equity infrastructure funds closing in first quarter 2018 raised significantly less capital than those closing first quarter 2017. If things continue in this direction, it will add 2018 to the ebb and flow pattern seen since at least 2013, where odd number years are good for infrastructure fundraising, and even numbered years not so good.

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FundTracker TrendWatch 3-20-18

According to data from IREI’s FundTracker database, infrastructure funds are continuing to grow in size, with the largest dominating the market. Funds raising more than $2 billion accounted for 74 percent of the capital raised, while funds raising $3 billion or more brought in 56 percent of the capital. Those raising less than $500 million accounted for only 4 percent of the total capital raised.

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FundTracker TrendWatch 3-6-18

During the past three years, more than 60 percent of capital was raised by mega-funds. Funds raising less than $500 million accounted for about 60 percent of the number of funds, but less than 20 percent of the capital raised.

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FundTracker TrendWatch 2-20-18

According to IREI’s FundTracker database, infrastructure funds took a bit more time to close in 2017 than they did in 2016. Averages can be deceiving, however, as both the two fastest and two slowest closing funds were European.

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FundTracker TrendWatch 2-6-18

According to IREI’s FundTrack database, real estate funds holding a final close in 2017 were on offer for about 18.0 months. This compares to 18.7 months in both 2014 and 2015, and 19 months in 2016. Trimmed averages confirm that marketing times are inching down, with 2017’s trimmed mean coming in at 17.1 months compared to 17.7 months and 17.6 months in 2015 and 2016, respectively.

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FundTracker TrendWatch 1-16-18

According to IREI’s FundTracker database, preliminary 2017 numbers indicate that infrastructure fundraising has continued its ebb and flow fundraising pattern, with 2014 being a down year, 2015 being up, 2016 being down and 2017 being up again. During this time, the market is moving in an overall upward direction.

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FundTracker TrendWatch 1-2-18

According to IREI’s FundTracker database, only 19 funds have reported a final closing so far in Q4 2017, with an aggregate total of capital raised coming in at $13.6 billion. This is significantly fewer than the number of funds closed in Q4 2016, as well as significantly less capital raised.

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FundTracker TrendWatch 12-19-17

According to IREI’s FundTracker database, 2017 infrastructure fundraising is very similar to that of 2016. Total aggregate capital raised, total number of funds closed, average size of funds and other 2017 metrics are nearly the same as 2016.

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FundTracker TrendWatch 12-5-17

TrendWatch updates a few of the charts used during the year and finds investors continuing to move to the defensive end of the spectrum, investment funds continuing to grow in size, mega-funds continuing to dominate, and investment totals continuing to trend down.

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FundTracker TrendWatch 11-21-17

Based on capital raised by infrastructure funds holding a final closing in the past three years, just five managers have raised 35 percent of the capital, despite being only 8 percent of the managers sponsoring funds closing since Jan. 1, 2015. The top 10 managers brought in 51 percent of the capital.

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FundTracker TrendWatch 11-07-17

According to the Global Investment Managers 2017 survey, the top 20 real estate investment firms now control more than half of the world’s real estate assets under management. These firms increased their market share by 1 percent year-over-year, which is pretty significant when based on the $3 trillion in assets under management reported by the 199 firms responding to the survey.

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2018 Real Estate Outlook: Optimize opportunities in an ever-changing environment

Courtesy of Deloitte

October 2017 — Real estate investors should consider the following trends and potential value they can bring to their investments in the year ahead: current REIT valuations are increasingly being impacted by investor activism, there is substantial capital flow from non-VC investors, robotic process automation can help CRE companies bring down costs drastically and may end up being cheaper than offshoring.

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FundTracker TrendWatch 10-17-17

We’re three-quarters of the way through 2017, and it appears that 2017 infrastructure fundraising has a very good chance of coming in ahead of 2016, and is enticingly close to surpassing 2015, as well. In addition, the average size of funds reaching final closing is continuing to grow.

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FundTracker TrendWatch 10-03-17

Early third quarter numbers are in, and they continue to point to 2017 being a down year for real estate investment funds when compared to 2015 and 2016. The amount of capital raised, number of funds reaching a final close and the average size of the funds were all down in Q3/17, as well as in the first three quarters combined, when compared to the same time periods in previous years.

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FundTracker TrendWatch 09-19-17

According to IREI’s FundTracker database, more than two-thirds of the infrastructure funds launched since the beginning of 2014 are still seeking investors. Europe is favored when looking at sheer numbers of funds, but global strategies jump to the top when looking at the amount of capital sought.

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FundTracker TrendWatch 09-05-17

More than 900 private equity real estate funds are currently in the marketing phase of their lifecycle, with about two-thirds of those being closed-end funds. One third of the funds in the market were launched in 2016 or 2017, but more than 160 closed-end funds were first offered prior to 2014.

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Global Investment Managers 2017 USD

The aggregate AUM of the top 100 largest investment managers increased 7.3 percent in 2016, totaling more than $2.8 trillion, according to Global Investment Managers 2017, an annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. A total of 199 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of slightly more than $3 trillion. The top 10 largest investment managers accounted for $1.038 trillion of AUM, which represents 34.5 percent of the total. This group of managers saw their AUM increase an average of 12.2 percent from 2015. Blackstone topped the rankings with more than $166 billion of AUM, followed by Brookfield Asset Management and PGIM, with $148 billion and $125 billion of AUM, respectively.

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Global Investment Managers 2017 Euros

The aggregate AUM of the top 100 largest investment managers increased 7.3 percent in 2016, totaling more than €2.7 trillion, according to Global Investment Managers 2017, an annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. A total of 199 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of slightly more than €2.8 trillion. The top 10 largest investment managers accounted for €0.98 trillion of AUM, which represents 34.5 percent of the total. This group of managers saw their AUM increase an average of 12.2 percent from 2015. Blackstone topped the rankings with more than €158 billion of AUM, followed by Brookfield Asset Management and PGIM, with €140 billion and €119 billion of AUM, respectively.

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FundTracker TrendWatch 08-22-17

According to IREI’s FundTracker database, nearly four-fifths of capital raised by infrastructure funds holding a final close in 2017 has been committed to a mega-fund — those funds raising $2 billion or more. Average mega-fund size is continuing to increase, as is the range between the smallest and largest mega-funds.

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FundTracker TrendWatch 07-18-17

According to the IREI FundTracker database, less than $3 billion was raised by infrastructure funds reaching a final close in the second quarter of 2017. Thanks to the $15.8 billion GIP III fund closing in the first quarter, first half 2017 is still well ahead of first half 2016, but fundraising trends don’t bode well for the rest of the year.

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FundTracker TrendWatch 06-20-17

According to IREI’s FundTracker database, infrastructure debt funds are having trouble gaining traction. They accounted for less than 8% of the capital raised by infrastructure funds reaching a final close in 2016. So far in 2017, they have failed to show up at all, with no debt fund closing year to date.

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FundTracker TrendWatch 06-06-17

According to IREI’s FundTracker database, debt-only funds plus funds with a debt component made up 40 percent of the capital closed in 2014. That market share has fallen each year until it now stands at just 27 percent of capital raised YTD 2017.

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FundTracker TrendWatch 05-16-17

According to the IREI FundTracker database, global infrastructure funds have grown both in size and market share during the past three years and are currently dominating the infrastructure fundraising market. In contrast, U.S. funds have seen their share of the market fall to just 12 percent in 2016, and less than 1 percent YTD 2017.

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Global Real Estate Market Outlook 2017

Courtesy of CBRE

February 2017 — The world in 2017 has much to offer, but it will require real estate professionals to be more informed than they have ever been. As well as comprehensive macroeconomics and real estate coverage, CBRE offers five key research themes: Capital markets: the search for alternatives Office: new work styles, new locations Retail: changing technology Industrial: transformation of the supply chain Hotel: new experiences, new platforms

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Perspective 2017 — United States

Courtesy of Bentall Kennedy

January 2017 — Despite significant global economic and political uncertainty, the steady U.S. economy — aided by stimulative fiscal policy — could see stronger growth in 2017, supporting attractive returns for real estate investors.

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Trends for 2017: Global Real Estate Trends Set to Shape the Next 12 Months

Courtesy of PGIM Real Estate

December 2016 — PGIM identifies nine major occupier and investment trends that are expected to influence market conditions and investment performance in 2017 and beyond. Uncertainty is higher than it was 12 months ago — forthcoming elections in major European countries carry a renewed significance in light of recent results — but the economic backdrop remains broadly supportive. Sentiment is holding up, and the global growth outlook is steady going into 2017.

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FundTracker TrendWatch 04-18-17

Fundraising totals for infrastructure funds reaching final closing in first quarter 2017 reached more than $30 billion, according to IREI’s FundTracker database. One fund accounted for more than half this total.

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FundTracker TrendWatch 04-04-17

According to IREI’s FundTracker database, fundraising totals are significantly down in the first quarter of 2017 when compared to the same periods of 2015 and 2016. These first quarter numbers are preliminary and will change as additional data is captured, but it is unlikely first quarter 2017 will approach the total of first quarter 2016, which itself was lower than the total raised in first quarter 2015.

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FundTracker TrendWatch 03-21-17

According to IREI’s FundTracker database, infrastructure mega-funds — those $2 billion or more in size — have accounted for 70 percent of the capital raised by closed funds since 2014. These funds have increased their market share each year since 2012, and are on track to continue this trend into 2017.

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FundTracker TrendWatch 03-07-17

March, 2017 — According to IREI’s FundTracker database, mega-funds are still raising more than their fair share of capital, with their three-year rolling averages continuing to trend upward. However, their percentage of the total market fell in 2016 versus 2015.

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FundTracker TrendWatch 02-21-17

February, 2017 — According to the IREI FundTracker database, infrastructure funds reaching final closing in 2016 were in the market almost 20 percent longer than those closing in 2015. Their 18.2-month average was the longest since 2012.

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FundTracker TrendWatch 02-07-17

February, 2017 — According to IREI’s FundTracker database, real estate funds holding a final closing in 2016 were only in the market, start to finish, for about 18 months, on average. Global funds, debt funds and mega-funds all reached a final closing significantly sooner than the mean.

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FundTracker TrendWatch 01-17-17

January, 2017 — According to IREI’s FundTracker database, infrastructure funds reaching final close in 2016 raised an aggregate of $56.4 billion, coming in slightly ahead of 2015’s total. Mega-funds accounted for 33 percent of all funds closed, while raising 75 percent of the year’s total capital.

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FundTracker TrendWatch 01-03-17

January, 2017 — According to IREI’s FundTracker database, 2016 was a solid, but not spectacular, fundraising year, with annual capital raised coming in at $90 billion, well short of 2015’s $110 billion total.

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FundTracker TrendWatch 12-20-16

December, 2016 — 2016 is turning out to look like a repeat of 2015 in the infrastructure fundraising arena. The number of funds closed and capital raised are the same, or nearly the same, YTD 2016 as that of 2015. Other metrics also bring a sense of déjà vu.

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FundTracker TrendWatch 12-06-16

December, 2016 — According to IREI’s FundTracker database, 2016 is trailing 2015’s fundraising totals by about $25 billion. In addition, investors are looking toward more defensive strategies, such as debt funds, and stepping back a bit from higher-return strategies.

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FundTracker TrendWatch 11-22-16

November, 2016 — According to the IREI FundTracker database, the top infrastructure managers continue to control an outsized share of the market, with sponsors of the five largest funds accounting for nearly one-quarter of the capital raised since 2014. Sponsors of the 10 largest funds closing in that time account for about 38 percent of the capital raised.

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FundTracker TrendWatch 11-08-16

November, 2016 — According to IREI’s FundTracker, the real estate investment industry grew about 13 percent by year-end 2015. As in past years, much of the growth was consolidated in a few top firms, with the top two firms alone being responsible for more than 10 percent of the world’s AUM.

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FundTracker TrendWatch 10-04-16

October, 2016 — Continuing the trend found in the first two quarters of 2016, fewer funds reached final closing, and less capital was raised, in third quarter 2016 than in third quarter 2015. Two funds were responsible for 40 percent of the capital raised in that quarter.

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FundTracker TrendWatch 09-20-16

September, 2016 — According to IREI’s TrendWatch, 52 percent of the infrastructure funds reaching final close since Jan. 1, 2014, focused on energy strategies. Energy funds also account for 46 percent of infrastructure funds launched in that time period.

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FundTracker TrendWatch 09-07-16

September, 2016 — According to IREI’s FundTracker database, diversified funds accounted for 42 percent of the real estate funds closed, and 52 percent of the capital raised, since Jan. 1, 2015. The second most-popular sector focus was debt, followed by residential funds.

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FundTracker TrendWatch 08-16-16

August, 2016 — Infrastructure mega-funds have accounted for 78 percent of capital raised by infrastructure funds closing year-to-date 2016. One fund accounted for nearly 38 percent of all capital raised YTD.

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FundTracker TrendWatch 08-02-16

August, 2016 — Mega-funds, which accounted for 66 percent of the capital closed in 2015 only account for 55 percent so far this year. They are also taking slightly longer to close than in previous years.

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FundTracker TrendWatch 07-19-16

July, 2016 — Funds closing in second quarter 2016 raised only 34 percent of capital raised by funds closing in the same time period of 2015. Based on amount of capital raised YTD, 2016 is proving to be a very slow year for infrastructure.

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FundTracker TrendWatch 07-05-16

July, 2016 — The trend of fewer real estate investment funds raising larger amounts of capital is continuing quarter-over-quarter and year-over-year. When looking at funds holding final closes in second quarter 2016, three of the 24 funds closed accounted for 55 percent of the capital raised.

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FundTracker TrendWatch 06-21-16

June, 2016 — In the past 30 months, infrastructure funds holding a final closing have raised $124.3 billion. Just $9.4 billion of that total came from debt funds. So far in 2016, only one debt fund has closed, raising $647 million for Europe infrastructure.

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FundTracker TrendWatch 06-07-16

June, 2016 — According to IREI’s FundTracker database, the amount of capital raised by debt funds has slowed but, because the entire fundraising market has slowed, their market share has increased. North America and Europe continue to attract the lion’s share of interest.

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The Case for Income Producing Real Assets

Courtesy of CenterSquare Investment Management

Q2/2016 — In the post Global Financial Crisis investment world, a distinct asset class called “Real Assets” has emerged, primarily motivated by the desire of investors to increase diversification and income while reducing volatility. In the current low yield, low growth investment environment, we recommend a more defined focus on “Income Producing Real Assets” (IPRA) in an effort to meet these objectives. Download the report to continue reading.

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FundTracker TrendWatch 05-24-16

May, 2016 — Based on YTD data, 2016 is looking like it will be a weak fundraising year for infrastructure. Amount of capital raised by funds closed, amount of capital targeted by nearly launched funds, and absolute number of funds launched and closed are all down year-over-year — as well as down year over multiple years.

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FundTracker TrendWatch 05-10-16

May, 2016 — Only 62 funds have launched this year compared to 101 during the same time period last year, and only 34 funds have closed versus 41 at this time in 2015. North America, in particular, has seen a fall off in interest.

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FundTracker TrendWatch 04-19-16

April, 2014 — According to preliminary first quarter 2016 numbers, the number of infrastructure funds reaching a final close in the first quarter has continued to decrease while the size of those funds has increased. In addition, the time from launch to final closing is increasing.

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FundTracker TrendWatch 04-05-16

April, 2016 — Based on early numbers for first quarter 2016, real estate fundraising is chugging along at a steady pace, with amounts raised in Q1/15 and Q1/16 being nearly identical. Higher-return strategies dominate as investors look to meet return objectives.

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Resilience of Airports

Courtesy of Magellan Asset Management Limited

March 2016 — Since the development of commercial aviation during the post-World War II era, passenger volumes at major commercial airports has grown at multiples of GDP over any medium-term period. This growth reflects many underlying factors including increasing wealth, real reductions in the cost of air travel, developments in aircraft technology and improvements in international airspace regulation. Download report to read more.

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The Modern Office Paradigm: An AOR perspective

Courtesy of Adaptive Office Resources

March 2016 — Cloud-based software applications, smartphones and other mobile devices have unplugged and revolutionized the modern-day workforce. This is having a profound effect on office owners, occupiers and employers, and will challenge the existing paradigms that platform the entire commercial office real estate industry for years to come.

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FundTracker TrendWatch 03-22-16

March, 2016 — In 2013, the average infrastructure fund closed at $1.6 billion. By 2015, that average had increased to $2.2 billion. Despite the fact that non-mega funds grew to almost $1 billion on average, mega-funds still accounted for 72 percent of the capital raised by funds closing in 2015.

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Europe Infrastructure Strategic Outlook 2016

Courtesy of Deutsche Asset Management

March 2016 — The 2016 outlook for Europe remains one of gradual recovery. However, unlike previous years, Europe seems to be on a firmer footing relative to other parts of the globe. Although the continent has not been immune to recent global uncertainty, consumers and businesses have so far seemed undeterred, leading to an acceleration of GDP growth in 2015. Download the report to read more.

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FundTracker TrendWatch 03-08-16

March, 2016 — Mega-funds continue to take market share from smaller funds. In 2015, funds that closed with $1 billion or more in commitments accounted for 22 percent of all funds closed and 69 percent of the capital raised.

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Australian Infrastructure Investment Report 2016

Courtesy of Infrastructure Partnerships Australia and Perpetual

2016 — Infrastructure Partnerships Australia (IPA) and Perpetual Corporate Trust have again undertaken this study of the Australian market for infrastructure projects and are delighted to jointly publish the Australian Infrastructure Investment Report.

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Global Investment Managers 2016 – Euros

2016 — A number of managers enjoyed double-digit growth in AUM during the past year, according to Global Investment Managers 2016, an annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. The industry’s top two largest investment managers, Brookfield Asset Management, with €137.1 billion in AUM as of year-end 2015, and The Blackstone Group, with €135.8 billion in AUM, recorded growth of 19 percent and 22 percent, respectively, based on figures reported in the prior year’s survey. The two behemoths continue to outpace others in the industry, as there is a growing and sizable gap between them and the other largest investment management firms. Blackstone has become a fundraising machine. In early 2015, the firm closed its Blackstone Real Estate Partners VIII, raising a record €14.5 billion of equity. Brookfield also made a large haul recently, closing its Brookfield Strategic Real Estate Partners II in April 2016 with €8.2 billion of equity. This year’s report captures data on 194 real estate investment managers around the globe. As a group, they control nearly €2.7 trillion of real estate assets. Also indicative of the jump in AUM, the top 10 largest managers, as a group, experienced a 12 percent increase from the previous year; the top 100 managers recorded a 14 percent increase.  

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Global Investment Managers 2016 – USD

2016 — A number of mangers enjoyed double-digit growth in AUM during the past year, according to Global Investment Managers 2016, an annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. The industry’s top two largest investment managers, Brookfield Asset Management, with $149.8 billion in AUM as of year-end 2015, and The Blackstone Group, with $147.6 billion in AUM, recorded growth of 19 percent and 22 percent, respectively, based on figures reported in the prior year’s survey. The two behemoths continue to outpace others in the industry, as there is a growing and sizable gap between them and the other largest investment management firms. Blackstone has become a fundraising machine. In early 2015, the firm closed its Blackstone Real Estate Partners VIII, raising a record $15.8 billion of equity. Brookfield also made a large haul recently, closing its Brookfield Strategic Real Estate Partners II in April 2016 with $9 billion of equity. This year’s report captures data on 194 real estate investment managers around the globe. As a group, they control nearly $2.8 trillion of real estate assets. Also indicative of the jump in AUM, the top 10 largest managers, as a group, experienced a 12 percent increase from the previous year; the top 100 managers recorded a 14 percent increase.

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FundTracker TrendWatch 02-23-16

February, 2016 — The amount of time the average fund takes from beginning to final close has crept up over the past year. Funds focused on North America and/or energy, however, closed more than 33 percent faster than the overall average.

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FundTracker TrendWatch 02-09-16

February, 2016 — According to IREI’s FundTracker database, the amount of time real estate funds are in the market has fallen steadily since 2013. Large funds, global funds and higher-return funds had the shortest closing times.

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FundTracker TrendWatch 01-26-16

January, 2016 — According to IREI’s FundTracker database, infrastructure investors can choose from more than 275 funds now in the market. Investment options range from debt to equity, from open-end to closed-end, from regionally focused to globally focused, and much more.

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FundTracker TrendWatch 01-19-16

January, 2016 — According to IREI’s FundTracker, investors have more choices than ever when it comes to placing their real estate allocations. The number of funds currently marketing has grown, as has the amount of capital being sought, the number of regions being targeted and the types of structure available to investors.

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FundTracker TrendWatch 01-12-16

January, 2016 — According to FundTracker, the 21 infrastructure funds closing in 2015 raised about $45 billion. In 2014, 32 funds raised $45.1 billion. Both years are a drop from 2013’s $52 billion raise, but both still represent a significant amount of capital looking for deals.

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FundTracker TrendWatch 12-22-15

December, 2016 — As 2015 winds down, investors and managers are looking back with a sigh of relief. 2014 had been a very good year for real estate, and there was some skepticism that the good times would continue. But they did.

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FundTracker TrendWatch 12-15-15

December, 2016 — According to FundTracker, the average size of all funds having final closings in the past three years is still growing — increasing from $507 million in 2013 to $883 million YTD 2015. Much of this increase, however, is due to the increasing size of mega-funds, which came in at $1.8 billion in 2013 and $2.7 billion YTD 2015.

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FundTracker TrendWatch 12-08-15

December, 2015 — TrendWatch tracked open-end funds launched since the beginning of 2011. The number launched each year grew through 2013, then began a slide that mirrored the growth years.

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FundTracker TrendWatch 12-01-15

December, 2015 — According to IREI's FundTracker database, 74 percent of all capital raised by funds closed year-to-date has been for higher-return strategies. In addition, the average fund size of higher-return funds is more than double that of lower-return or mid-return funds.

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PCCP Market Commentary: Looking in the Rear View Mirror Fourth Quarter 2015

Courtesy of PCCP LLC

Q4/2015 — 10 years is a magical number in the real estate business. Many investors analyze their returns over a hypothetical 10‐year hold, most standing loans on commercial real estate have a 10‐year term, and most closed‐end funds have a 10‐year life. Many commercial leases have 10‐year base terms. At the end of the 10‐year cycle, portfolios are culled and rationalized, loans are refinanced, funds are liquidated, and a whole new crop of tenant improvements and capital expenditures is needed to attract or retain tenants. Download the report to continue reading the most recent quarterly PCCP White Paper.

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FundTracker TrendWatch 11-10-15

November, 2015 — Despite investors often voicing a preference for sector-specific funds, the vast majority of real estate investment funds are diversified across all sectors. Another large percentage have mandates for two sectors. Few are truly sector-specific.

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FundTracker TrendWatch 11-03-15

November, 2015 — Despite the interest in infrastructure financing, only six infrastructure debt funds have closed since Jan. 1, 2013, according to IREI’s FundTracker. In total, these funds raised less than $10 billion.

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FundTracker TrendWatch 10-27-15

October, 2017 — Based on FundTracker data, real estate debt funds have become a significant part of the market. The amount of capital raised by funds with a debt component is significantly greater than their numbers would indicate.

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FundTracker TrendWatch 10-20-15

October, 2015 — TrendWatch finds that more infrastructure funds are launched in January than any other month. October is the most popular month for fund closings, while funds closed in April raised the most capital.

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FundTracker TrendWatch 10-13-15

October, 2016 — During the past four years, more funds were launched in January than any other month of the year. In fact, more than double the number of funds were launched in the first month of the year than in June, the second most popular month. June turns out to be the second most-popular month for closings, as well.

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FundTracker TrendWatch 09-29-15

September, 2015 — So far in 2015, 110 new real estate funds have launched, seeking an aggregate total of more than $50 billion. Of those funds, nearly 80 percent are focused on North America and Europe.

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Europe’s investible residential landscape

Courtesy of Aberdeen Asset Management

September, 2015 — This paper delivers Aberdeen’s current research into the European residential sector at a country level.  Specifically, we examine the rented, institutionally-owned residential sector.  We believe that supply is constrained across Europe and on-going capacity constraints are commonplace.  Development has simply not kept pace with demand.  In our opinion, the most attractive market for residential real estate is Germany; however, other markets look promising as well. There are significant investment opportunities in the Netherlands, Sweden, Switzerland, Denmark, France and increasingly the U.K.  Read our paper to learn more about how residential markets can differ enormously between countries and cities.

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FundTracker TrendWatch 09-22-15

September, 2015 — Despite a dearth of traditional infrastructure deals (i.e. anything except energy), the United States continues to attract more than 60 percent of the infrastructure capital raised by funds closed since 2013.

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FundTracker TrendWatch 09-08-15

September, 2015 — According to the Global Investment Managers 2015 survey, the top 20 real estate investment managers now control more than 50 percent of the total real estate AUM — and if trends continue, they’ll control even more next year as all firms in the top 10 have increased their AUM each year for the past two years.

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FundTracker TrendWatch 09-01-15

September, 2015 — According to IREI's FundTracker database, infrastructure funds launched since 2013 have been highly successful in meeting their goals, with the total raise reaching 71% of the total target. Only 32% of those funds have held final closings, but of the closed funds, 66% were oversubscribed.

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U.S. Real Estate Strategic Outlook: Mid-Year Review

Courtesy of Deutsche Asset & Wealth Management

August, 2015 — The U.S. commercial real estate market has delivered impressive total returns over the past five years. So impressive, in fact, that some investors are beginning to wonder how much longer the momentum can run. This cycle, like all others, will eventually come to an end. Yet real estate has historically performed well in moderate-growth, low interest rate environments, conditions that we expect to persist for several more years. Download the report to read more.

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Asia Pacific Real Estate Strategic Outlook: Mid-Year Review

Courtesy of Deutsche Asset & Wealth Management

August, 2015 — Real estate performance across much of the Asia Pacific region has been steadily attractive on the back of a strong capital market and healthy recovering leasing market. Japan, China, Hong Kong and Singapore experienced strong office leasing demand in the first half of 2015, while Australia and Korea witnessed short-term challenges due to a weakened economy. Recovery is expected in 2016 for key most markets while it is likely to remain subdued in Singapore due to a surge of new supply. Download the report to read more.

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FundTracker TrendWatch 08-25-15

August, 2015 — According to data from FundTracker, 8 percent of the funds launched since 2013 have been sponsored by emerging managers. While the maximum fund size for funds launched by established managers is nearly 87 percent larger than the average emerging manager's fund size, most of the other data indicates that emerging managers are doing just as well as established managers when it comes to accessing capital.

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FundTracker TrendWatch 08-18-15

August, 2015 — According to the IREI FundTracker, the number of infrastructure funds launched in first half 2015 has fallen by 39 percent compared to the number launched in first half 2014. The number of funds closed has also fallen, though the amount of capital raised has increased.

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Europe Real Estate Strategic Outlook: Mid-Year Review

Courtesy of Deutsche Asset & Wealth Management

August, 2015 — Europe’s economic recovery remains on track. Although not without risks, with ongoing concerns in places such as Greece and Ukraine, on the whole the outlook for the European economy has improved over the past six months. Confidence is high and jobs are being created. With the ECB undertaking quantitative easing, bond yields are lower than had been previously expected, while the threat of Eurozone bond yields trending considerably higher over the coming years is small. Download the report to read more.

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FundTracker TrendWatch 08-11-15

August, 2015 — According to the IREI FundTracker, the first half of 2015 is a bit mixed when compared to the first half 2014. Fewer funds launched in 1H15 than in 1H14, but more funds have closed this year than last. The amount of capital raised in the first half of 2015 is about 37 percent more than that raised in the same period in 2014.

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FundTracker TrendWatch 08-03-15

August, 2015 — Energy funds have accounted for 57 percent of the total infrastructure funds launched and closed over the past three years, as measured by targeted and raised capital. And the attraction has increased each year, to the point that nearly all new funds launched in 2015 are energy focused. Where does this leave the other infrastructure sectors?

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FundTracker TrendWatch 07-27-15

July, 2015 — Mega-funds are capturing a larger market share than ever before. They now account for about 14 percent of the funds closed but about 65 percent of the capital raised YTD 2015.

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FundTracker TrendWatch 07-20-15

July, 2015 — Based on the infrastructure funds that have closed YTD 2015, the average fundraising period has fallen to less than a year. Americas-focused infrastructure funds closed in the shortest amount of time among the regions, while energy funds led the sectors.

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FundTracker TrendWatch 07-13-15

July, 2015 — Based on the funds that have closed YTD 2015, the average time for a fund to be in the market is now a little less than 17 months, compared to a little more than 17 months for all of 2014. Global funds, debt funds and mega funds are finding the most acceptance.

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FundTracker TrendWatch 07-07-15

July, 2015 — According to the IREI FundTracker database, the number of infrastructure funds launched during 2015 has slowed dramatically compared to previous years. The average fund size, however, remains well over $1 billion. To no one’s surprise, nearly all newly launched infrastructure funds are focused on the energy or renewables sector. For more details on what is going on in the market — and why investors are constantly in play, view the report.

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FundTracker TrendWatch 06-29-15

June, 2015 — With real estate reaching pre-recession levels in the major gateway cities and moving in the right direction in secondary regions, it is safe to say that real estate is back, and with it, funds are seeing a strong resurgence. According to the IREI FundTracker database, there are at least 25 more funds being marketed now than there were in January. For more details on what is in the market — and why investors will undoubtedly find their phones ringing nonstop this year.

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The effect of interest rates on listed real estate

Courtesy of Deutsche Asset & Wealth Management

June, 2015 — One primary consideration of investors looking to make an allocation to listed real estate via real estate investment trusts (REITs) today is the impact that a rising-rate environment has on the relative performance of REITs vs. other broader asset classes. The purpose of this paper is to discuss how REITs have historically performed in different interest-rate environments, where we are today, and what we can expect going forward. We will also discuss the role of REITs in a portfolio as part of a comprehensive investment strategy.

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PCCP Market Commentary: The ‘Burbs Second Quarter 2015

Courtesy of PCCP LLC

Q2/2015 — The eponymous movie starring Tom Hanks was released in 1989 at the onset of a massive population shift away from the urban core of American cities and into the suburbs. In the years that have passed since the Great Recession, however, America’s inner cities have led the way in the recovery, leading many to the conclusion that we have entered into a new paradigm of re‐urbanization. As it relates to commercial real estate, the thought is that a shift in population growth away from the American suburb will have a profoundly negative impact on suburban office as employers follow their workforce back into the CBD. Our instincts tell us that the “death of the American suburb” drum beat proliferated in the media is misguided and overplayed, a recipe for a good investment opportunity. In the end, success in real estate investing all boils down to supply and demand. Let’s take a step back and look at the macro forces at work.

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The State of the U.S. Real Estate Market – Spring 2015

Courtesy of CenterSquare Investment Management

Spring, 2015 - The apparent predictability of the development cycle begs the question that if we can see projects rising before our eyes, and we can measure their progress along the way, and we can predict with a high degree of certainty when they will arrive, then why do so many people continue to claim that you cannot time the real estate market? The market cannot hide the supply pipeline that it is delivering from a distance, as the data and the physical evidence are available to most anyone who takes the time to observe them. The reality is that you can time the cyclicality of the real estate market, and, more importantly, to be a superior investor, you actually must time the market. More on that idea to follow, but first let’s set the stage...

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How to invest in property in global “winning cities”

Courtesy of Aberdeen Asset Management

March, 2015 — The world is becoming increasingly urbanized, with a rising number of “megacities” that are experiencing rapid growth in both population and affluence in both the developed world and emerging markets. The world’s gateway cities are very appealing to property investors and appear to be a magnet for international capital. While there are common, shared characteristics across the world’s gateway cities there are also pronounced differences, particularly in the key variable of supply constraint (or lack of it).

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The Wealth of Cities: The Investment Implications of Urban Expansion

Courtesy of Prudential Investment Management

2015 — This report, put together by Prudential Investment Management (PIM), examines why right now is the primetime of urbanization, and explores the investment opportunities currently available in emerging markets due to the growth of cities, including urban infrastructure, real estate, technology, anti-pollution initiatives, and more.

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Realising The Asean Economic Community in 2015

Courtesy of Knight Frank LLP

2015 — With the ambitious target of implementing the Association of Southeast Asian Nations (ASEAN) Economic Community (AEC) by 2015, the opportunities for corporate occupiers and real estate investors across an enlarged single market of some 600 million people look promising. Nicholas Holt examines the background, the challenges and the possible impacts. Nearly five years on from the signing of the AEC blueprint in November 2007, the region is now only three years away from the target of fully implementing measures to create a single market with free movement of goods, services, foreign direct investment and skilled labour.

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Global Investment Managers 2015 – Euros Version

2015 — The Blackstone Group and Brookfield Asset Management continue their rivalry for the top spot among real estate investment managers. In the 2012 survey, Brookfield held the number 1 position. Last year, Blackstone moved ahead. And this year, Brookfield again moved into first place. The two behemoths both have approximately €100 billion under management with BAM increasing AUM by 16 percent, moving from €78.3 billion in 2013 to €103.8 billion in 2014; Blackstone saw a 12 percent increase in AUM, going from €78.5 billion in 2013 to €99.9 billion in 2014. The top 10 firms in the survey collectively manage €679 billion of assets, or 33 percent of the total. The top three firms in the rankings — BAM, Blackstone and CBRE Global Investors — account for nearly 14 percent of the AUM total. See the full report for the complete rankings of investment management firms based on AUM.

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Global Investment Managers 2015 – USD Version

2015 — The Blackstone Group and Brookfield Asset Management continue their rivalry for the top spot among real estate investment managers. In the 2012 survey, Brookfield held the number 1 position. Last year, Blackstone moved ahead. And this year, Brookfield again moved into first place. The two behemoths both have more than $120 billion under management with BAM increasing AUM by 16 percent, moving from $107.9 billion in 2013 to $125.6 billion in 2014; Blackstone saw a 12 percent increase in AUM, going from $108.2 billion in 2013 to $121.0 billion in 2014. The top 10 firms in the survey collectively manage $822.5 billion of assets, or 33 percent of the total. The top three firms in the rankings — BAM, Blackstone and CBRE Global Investors — account for nearly 14 percent of the AUM total. See the full report for the complete rankings of investment management firms based on AUM.

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U.S. Commercial Real Estate Outlook

2015 — The U.S. real estate market has posted solid returns the past few years. However, volatility is expected to return to the market, a signal for investors to examine their taste for risk and prepare for eventualities.

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Investing in real estate: the outlook for 2015 and beyond

2015 — Real estate on the rise. What do the property markets have in store for 2015 and beyond? The commercial property types regrouped on a solid ground in 2014 after climbing back from the pit of lost values, deflated pricing and stagnant transaction markets set off by the Great Recession. From multifamily's long-standing growth run to the office market's plodding gains in tenant demand and retail's bifurcated efforts to pursue changing consumer spending habits, the property types had all found sufficient footing by the end of the year to generate meaty investor returns.

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PCCP Market Commentary: Condos, Condos Everywhere Third Quarter 2014

Courtesy of PCCP LLC

Q3/2014 — We're continuing our exploration of supply and demand this quarter, but this time we are taking a look at condominiums, which was the last one sector of real estate that had substantial new development and unsold inventory during the last cycle. Today, almost six years later, much of the inventory ha been absorbed - largely at lower prices - or converted to rental units.

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U.S. Research Quarterly June 2014

Courtesy of Cornerstone Real Estate Advisers LLC

June, 2014 — The U.S. economy temporarily contracted in the first quarter, impacted by sever winter weather. Real GDP declined at an annualized rate of 1.0% (second estimate) in Q1 2014, dragged down by declines in private investment and net exports. On the positive side, consumption expanded to a 3% annualized rate and real GDP was up 2% on year-over-year basis. Second quarter economic release portray a resilient and strengthening economy, albeit one that still face challenges (housing and long-term unemployment), that we expect to grow at 3% or above the rest of the year. Job growth is picking up, household wealth is rising, and policy uncertainity has essentially vanished from the news headlines.

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PCCP Market Commentary: Basic Instinct Second Quarter 2014

Courtesy of PCCP LLC

Q2/2014 — This quarter we're focusing on basic rules of economics: specifically, supply and demand. It is commonly understood that the Global Financial Crisis was not a real estate driven recession powered by commercial oversupply, like the early 1990s recession. Rather, it was caused by residential real estate over-pricing, largely driven by over-heated financial markets.

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Pension Fund Investment in Infrastructure: Lessons from Australia and Canada

Courtesy of Inderst Advisory

Spring, 2014 — Australian and Canadian pension funds have been pioneers in infrastructure investing since the early 1990s. They also currently have the world’s highest asset allocation to infrastructure. The article compares and contrasts the experience of institutional investors in the two countries, looking at factors such as infrastructure policies, the pension system, investment strategies, and the governance of pension funds.

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The Impact of REITs on Asian Economies April 2014

Courtesy of APREA

April, 2014 — Real estate investment trusts (REITs) are relatively young asset class in Asia. The earliest markets to embrace the asset class were Japan and Singapore, both of which saw their first REIT initial public offering (IPOs) just a little over a decade ago. Since then, REIT markets have emerged in Hong Kong, Malaysia, Thailand, Taiwan, and South Korea, with additional markets such as India and the Philippines introducing REIT legislation or considering doing so.

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Institutional Investment in Infrastructure in Emerging Markets and Developing Economies March 2014

Courtesy of Public-Private Infrastructure Advisory Facility (PPIAF) and The World Bank Group

March, 2014 — This study discusses the role of institutional investors in financing infrastructure in emerging market and developing economies (EMDEs). It analyzes the present level of involvement as well as the future investment potential of new financing sources such as public and private pension funds, insurance companies, and sovereign wealth funds. Current investment volumes are still low, but interesting, practical examples can be found in a range of countries and projects. International and domestic investors apply a variety of investment approaches in developing countries, using different equity, debt and fund instruments. This overview can yield some lessons for policy makers and investors. There are (more or less) favorable pre-conditions for successful private-investor involvement, and different models work in different situations, depending on the development stage and the institutional environment. Four types of "leadership models" are therefore described for international and/or domestic investors seeking to spearhead infrastructure investment in EMDEs.

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Global Investment Managers 2014 – Euros Version

2014 — The Blackstone Group climbed to the top of the rankings, claiming the number one spot as the world's largest real estate investment manager, with more than €78.5 billion of assets under management. In addition, the aggregate total assets under management for the largest 100 real estate investment management firms reached €1.55 trillion in 2013, up 10 percent from the 2012 figure of €1.41 trillion, according to Global Investment Managers 2014, a report based on an annual survey by Property Funds Research and Institutional Real Estate, Inc. See the full report for the complete rankings of investment management firms based on AUM.

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Global Investment Managers 2014 – USD Version

2014 — The Blackstone Group climbed to the top of the rankings, claiming the number one spot as the world's largest real estate investment manager, with more than $108.2 billion of assets under management. In addition, the aggregate total assets under management for the largest 100 real estate investment management firms reached $2.14 trillion in 2013, up 10 percent from the 2012 figure of $1.94 trillion, according to Global Investment Managers 2014, a report based on an annual survey by Property Funds Research and Institutional Real Estate, Inc. See the full report for the complete rankings of investment management firms based on AUM.

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THINK GLOBAL: Finding the MAGIC 2014

Courtesy of TIAA Henderson Real Estate

2014 — Within our new organisation, a unified investment strategy has been formulated using top-down analysis to identify the geography and cycle timing of prospective property investments. Targeting countries is the first layer of investment strategy, as country-level factors are a primary driver of property performance. These factors include both long-horizon elements of economic and demographic structure that contribute to the attractiveness of real estate investing, as well as shorter-term dynamics of real estate cycles and their drivers that detemine risk-adjusted pricing. This report offers a description of our top-down process and its conclusions for 2014. Bottom-up analysis dealing with individual sector, sub-markets and specific properties draws from the experience and expertise of our real estate professionals across disciplines. This complements top-down analysis and it an integral component of executing strategy.

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Investment Focus: Frozen on the Rates: Impact of Interest Rates on Capitalization Rates

Courtesy of Morgan Stanley Real Estate Investing

January, 2014 — Growing up in Canada, hockey was consistently a big part of my life (and still is). With the winter Olympics coming, 2014 is a big year in the hockey realm as twelve nations will compete for a gold medal in Sochi, Russia. In hockey, there are many ingredients: stick, skates, pads, ice, net, but none more important than the puck. The puck is a frozen disc of vulcanized rubber that every player is chasing, passing, shooting, defending and anticipating its next location. In fact, in the 1990s, Fox Television devised a system which had internal electronics allowing television viewers to track the position of the puck with a blue glow on the screen. Its purpose was to aid viewers to better follow and understand the action of the game.

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PCCP Market Commentary: Is It 2007 All Over Again? First Quarter 2014

Courtesy of PCCP LLC

Q1/2014 — It's year end, time for the traditional look back at the accomplishments of the year just concluded, and for a look forward at the opportunities to come. The U.S. stock markets are at record highs, despite hints that the Federal Reserve is starting to back off on its quantitative easing strategy. The Wall Street Journal reports that in numerous markets, housing prices are past prior peaks (although the numbers are uneven). The U.S. Treasury is reflecting increased confidence in the economy, passing the 3.0% rate for the first time since 2011.

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Era of Execution

Courtesy of Center Square Investment Management

November, 2013 — This white paper focuses on the potential of value-add strategies to generate attractive risk-adjusted returns in private real estate. Value-add strategies involve acquiring real estate at an attractive cost basis and then resolving the property’s deficiency, stabilizing the income stream, and increasing the overall value of the property for disposition.

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PCCP Market Commentary Commercial Real Estate Markets: Then and Now Third Quarter 2013

Courtesy of PCCP LLC

Q3/2013 — The U.S. economy appears to have recovered from the financial crisis. Equity markets reached record highs during the second quarter, with the Dow reaching its peak on May 28th at 15,409, an 18% increase from the beginning of the year. Fears of a double-dip recession have subsided behind 2.2% real GDP growth in 2012 and 2.5% projected GDP growth in 20131. With the continued growth of the economy, the Fed indicated that they may begin scaling back their monthly securities buying program. Despite the recent pull back in the markets, most indices are still very much in the positive for the year and the underlying macro-economic statistics are very positive year to date.

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Emerging Trends in Real Estate Asia Pacific 2013

Courtesy of Urban Land Institute

2013 — Investor sentiment across many markets in Asia has grown increasingly uncertain toward the end of 2012, with concern over fading global economic prospects tempered by ongoing strength in asset pricing and persistently compressed yields. The lack of conviction has been highlighted by the divergent approaches of foreign and local investors to property pricing, with Asian buyers often willing to pay up for properties at rates foreigners find prohibitive.

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PCCP Market Commentary: Leverage is Back 2Q2013

Courtesy of PCCP LLC

2Q/2013 — The 2008 financial crisis may forever be associated with one word: leverage. Homeowners (no money down mortgages), investment banks (30 to 1 leverage) and governments ($1 trillion deficits) took on too much debt, and the resulting correction has been painful. Now, it seems that leverage is returning to commercial real estate, presenting new opportunities and a new set of risks. Leverage has grown more complex, and before making an investment, investors need to consider how leverage will impact investments in different parts of the cycle. Skillful management of leverage will be critical for investors to achieve required returns and survive any potential market correction.

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Global Property Investment April 2013

Courtesy of Aberdeen Asset Management PLC

Global or local? 2013 — Property has long been considered a mainstream asset class for institutional investors. However, for most there has been a strong home-bias, with high exposure to domestic markets. Increasingly, we believe investors are looking toward global property markets as a way to improve potential risk-adjusted returns and divof their property portfolio. The step from domestic to global property investment, however,  is not a trivial one and in some cases it may not be an appropriate solution. We believe the following three steps provide some insights into global property markets and also a framework for investors to understand better whether it might be a suitable approach for them.

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Global Listed Infrastructure March 2013

Courtesy of CBRE Clarion Securities

March, 2013 — Investment in infrastructure is among the world’s leading growth drivers and is a strategic priority for countries worldwide. Listed infrastructure companies are playing a dominant role in the accelerating growth of the infrastructure asset class globally. More than $50 trillion is likely needed to fund global infrastructure projects in the coming years, essentially making infrastructure among the world’s largest growth industries.

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The Elements of Investing in Real Asset March 2013

Courtesy of Cohen and Steers

March, 2013 — Defining the Objectives and Characteristics of a Real Assets Framework In our view, the design of a real assets investment strategy is not just about inflation protection; it’s also about delivering attractive long-term returns with less volatility than found in most individual real asset classes. When inflation is rising, the strategy’s return potential should rise as well. When inflation is easing, its diversified return profile should be less volatile than those of individual real asset classes. And finally, the strategy should offer diversification(1) benefits for portfolios of stocks and bonds. As we applied these objectives to the design of a real assets framework, we identified five central themes.

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The Case for Real Estate Securities March 2013

Courtesy of Cohen & Steers

March, 2013 — Real estate securities combine the benefits of owning commercial real estate with the features of publicly traded stocks. This unique combination results in a set of investment characteristics that we believe make a compelling case for a long-term strategic allocation to the asset class.

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Opportunistic Investing in Europe: The Case for Germany, Poland and the Czech Republic

Courtesy of Peakside Capital

2013 — Over the last 12 to 18 months, there has been a noticeable increase in interest from US investors for opportunistic real estate investment in Europe. At Peakside Capital, we attribute this change to both "pull" and "push" factors. The "pull" is the realization in the US that the worst of the Eurozone crisis is behind us and parts of Europe are actually doing quite well. The "push" is the realization that the opportunities arising from the financial crisis in the US are now largely exhausted and so investors are looking further afield, with Europe being the next target. In other words, US-based investors now view Europe more as an "opportunity" than a "risk".

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Global Construction Disputes: A Longer Resolution

Courtesy of EC Harris

2013 — The key finding of this year’s report into global construction disputes is that disputes are taking longer to resolve. Overall, they are now taking over a year to resolve, with the average length of time for a dispute to last in 2012 being 12.8 months, compared to 10.6 months in 2011. This continues the trends for longer disputes - in 2010 disputes were taking 9.1 months to resolve. Whilst dispute durations are getting longer, the value of disputes was broadly stable in 2012. The average value of global construction disputes in 2012 was US$31.7 million, down slightly from US$32.2 million in 2011.

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Capital Markets Lender Forum February 2013

Courtesy of CBRE Capital Markets

February, 2013 — Commercial real estate lending markets finished 2012 on a high note, with a flurry of deals closing during the fourth quarter. According to CBRE's analysis of loan closings, total lending volume increased by 18% in Q4 2012 over year-earlier levels. In addition to strong growth in multifamily lending from the agencies (up 36% from 2011 levels), banks and CMBS lenders contributed disproportionately to the overall gains.

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Emerging Trends in Real Estate Europe 2013

Courtesy of Urban Land Institute

2013 — Optimism has returned to Europe’s real estate industry. Sentiment among industry leaders about the prospects for their businesses is more positive than at any time since 2008, despite the uncertain macroeconomic outlook. Equity for investment in prime commercial real estate is expected to increase, but bank debt is predicted to contract further. Emerging Trends Europe’s respondents are adjusting to this “new normal.” Those with access to capital are focusing on opportunities in areas they know best. They recognize that traditional stock selection and micro asset management skills are crucial to generating returns. The environment offers very little certainty and definitely no quick wins. Europe’s real estate markets continue to be challenging, but all sectors offer new investment potential, too.

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2013 M&A Outlook Survey: Executives Expect M&A Market to be Active in the Year Ahead

Courtesy of KPMG LLP

2013 — KPMG and Mergers & Acquisitions magazine conducted a survey of over 300 M&A professionals at U.S. corporations, PE firms, and investment funds immediately after the U.S. election to gain a better understanding of the current M&A market. This publication analyzes the findings of the survey and provides insights into the outlook for M&A in 2013. For additional news and information, please access KMPG LLP's Web site on the Internet at https://www.us.kpmg.com

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Family Offices in Singapore

Courtesy of Family Offices Group

2013 — The Singapore Family Offices report is  a short report on what really makes Singapore such a unique location for family office and fund management activities.

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Real Estate Secondary Market Transaction Volume Reaches $2.6 Billion During 2012

Courtesy of Landmark Partners

2012 — The market for real estate secondary transactions has recorded a fourth straight year of record transaction volume, with $2.6 billion of activity during 2012, based on Landmark Partners’ annual global tally.  A tenured investor in the real estate secondary market, Landmark continues to aggregate this data through a variety of channels including the firm’s own transaction experience as well as discussions with other market participants.

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Global Investment Managers 2013

2013 — This report was prepared by Property Funds Research and Institutional Real Estate, Inc. The top 20 investment managers in this year’s survey control 57 percent of the aggregate AUM reported by the 137 firms in the survey. The top 10 firms control 36 percent.

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Megatrends 2013

2013 — This article is taken from the March issue of The Institutional Real Estate Letter – Americas and identifies 7 powerful forces that are changing the future of real estate including the decline of defined benefit plans and shrinking office space.

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Europe – Opportunity Knocks

2013 — This report gives an overview of what is currently happening in the European property markets. It is a compilation of articles previously published in The Institutional Real Estate Estate Letter – Europe that have been pulled together to paint a picture of the opportunity that is out there and the risks surrounding it. The report also ends with a listing of European property transactions.

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PCCP Market Commentary “Haves” and “Have Nots”: Anecdotes vs. Stats First Quarter 2013

Courtesy of PCCP LLC

Q1/2013 — As we enter 2013, we are more than four years into the Global Financial Crisis. As stated in prior commentaries, PCCP believes we are only 40% of the way through the real estate workout cycle. Our view is consistent with the most prominent recent academic literature, which argues that leverage-induced recessions run 7-9 years (This Time is Different by Reinhart and Rogoff). Anecdotally, it feels like strong financial institutions are starting to invest in earning assets, which in our world means making new loans on commercial real estate (“CRE”). Real estate was hit especially hard and the recovery has been a story of “haves” and “have nots” as we all know. The “haves” are the best customers, with strong balance sheets and trophy real estate, or anyone with a Class A apartment project. The “have nots” are everyone else. But what do the numbers show? We analyzed data on the CRE debt world as a whole and the three largest banks holding CRE debt to see how our anecdotal observations match up against the statistics. We conclude that although CRE lending is showing signs of life for the “haves,” there will still be plenty of opportunity to lend on and invest in the “have nots,” specifically institutional-quality, non-core asset recapitalizations.

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A Case for Global Listed Infrastructure

Courtesy of Cohen and Steers

October, 2012 — The fundamental case for infrastructure is grounded in the return potential and inherent characteristics of the asset class—long-lived assets in businesses with high barriers to entry found in monopolistic industries, typically supported by the resilient demand for essential services. The investment opportunities are global, driven by decades of infrastructure neglect in developed economies and the need to build out large scale infrastructure networks in emerging markets.

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China Research September 4, 2012

Courtesy of Real Estate Foresight

September, 2012 — This report on Chinese real estate markets is designed to serve as a reference chart book to help investors systematically review the key data and indicators illuminating the latest changes, trends and themes in the markets. The information is organized in a way that brings together macro- economic, capital markets and sector specific direct market perspectives

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When safe isn’t safe: Why secondary office/flex transactions present a compelling alternate to core real estate acquisitions

Courtesy of Macfarlan Capital Partners, L.P.

September, 2012 — Recent quarters have shown measured improvement in the United States economy. The current situation, however, contains uncertainty and investors must proceed with what leading economists refer to as “tempered optimism.”1 Allowing this mindset to guide decisionmaking creates a “flight to quality,” leading investors to pursue expensive Class A assets and core assets (such as trophy office towers and multifamily complexes in gateway markets New York City, Boston, Washington D.C., San Francisco and Los Angeles) purchased on historically low cap rates. These premium priced trophy assets attract investors who are looking to allocate equity to perceived stable products, due to an appetite for current yield driven by the record low U.S Treasury bond rates.

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Q3 2012 U.S. IPD U.S. Quarterly Property Index

Courtesy of IPD

Q3/2012 — U.S. investment returns exhibit consistent growth.  The IPD U.S. Quarterly Property Index, which includes tax-exempt and taxable domestic and foreign investors invested in U.S. private equity commercial real estate, produced a total return of 2.5% in 3Q 2012, consisting of 1.4% income and 1.2% appreciation.

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September 2012: Will the Office Sector Fall Off of the Fiscal Cliff?

Courtesy of Cassidy Turley

September, 2012 — The phrase “fiscal cliff” was coined by Ben Bernanke, Chairmen of the Federal Reserve, in describing the impact of budget sequestration and tax increases on the U.S. economy, effectively causing a new recession to occur. The Congressional Budget Offi ce (CBO) agrees. They estimate that the new policies will cause real GDP to contract by 0.3% in 2013. However, the CBO acknowledges the possibility of avoiding the cliff if policymakers adopt alternative solutions. In this paper, we review the various scenarios and evaluate the impact each scenario would likely have on the commercial real estate (CRE) markets.

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Asian Property Outlook & Strategy August 2012

Courtesy of Pacific Star

August, 2012 — Global economic activity expanded at a measured pace in the first half of 2012. Leading indicators point to a continued deceleration for most major economies. The private sector recovery remains modest in many countries amidst weak sentiment. As the unresolved Eurozone debt crisis looms over the global economy, the path ahead is fraught with uncertainties and risks. However, not all is gloom and doom. While economic prospects for the U.S. and Europe remain muted, Asia will continue to stand out given resilient domestic demand and greater policy options.

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Commercial Real Estate Survey

Courtesy of KPMG LLP

Q2/2012 — KPMG LLP, the audit, tax and advisory firm, surveyed top-level executives in the commercial real estate industry during the second quarter of 2012.  Participants were asked about business conditions in their sector, the most significant revenue growth areas, and factors that would impede or support recovery in real estate. These responses were compared to the findings of a similar survey conducted among commercial real estate executives in the second quarter of 2011. For additional news and information, please access KPMG LLP's Web site  

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The Case for Opportunistic Real Estate Investment in Europe

Courtesy of J.P. Morgan Asset Management – Global Real Assets

2012 — The past few years have certainly been a testing time for all investors active in the European real estate market. Sovereigns have been on the brink of collapse, economies show little sign of anything remotely approaching a sustained recovery, and the banking system will remain fragile for some considerable time yet. This period of unprecedented volatility has, at times, challenged the very core of the European experiment. Twenty something crisis meetings have come and gone and each has done little to calm the nerves of fractious investors, much less engender any feeling of confidence.

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Global Investment Managers 2012

2012 — This report was prepared by Property Funds Research and Institutional Real Estate, Inc. The top 20 investment managers in this year’s survey control 60 percent of the aggregate AUM reported by the 129 firms in the survey. The top 10 firms control 38 percent.

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Infrastructure Investor Survey

2012-2013 — The analysis includes the perspectives of global investors and consultants and will provide you a strong sense of these organizations’ priorities and expectations for infrastructure investment. The survey also will give guidance and clarity to investment managers, including data about investor preference for various products and terms, giving managers the ability to better meet investor appetites.

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CalPERS Infrastructure Investment Outreach Review: Laying the Groundwork for Collaboration

Courtesy of CalPERS

September, 2011 — On September 12, 2011, the Investment Committee of the California Public Employees' Retirement System ("CalPERS") Board of Administration ("Investment Committee") earmarked up to $800 million for investment in California infrastructure over a three-year time period. The primary goal of this initiative is to make investments in essential infrastructure assets that meet the risk-return objectives of CalPERS Infrastructure Program ("the Program"), while also potentially benefiting local economic development and essential community services across the state. The Investment Committee instructed staff to develop a plan for outreach to state and local governments to explore the role CalPERS and other pension systems can play in facilitating infrastructure investment in California ("the Outreach Effort").

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The Case for Real Estate in an Institutional Portfolio

1997 — This paper seeks to offer a relatively complete examination of all the issues that pertain to the decision to include, or exclude,real estate as a component of institutional portfolios. This work is the culmination of an in-depth review of the historic and current studies, as evidenced by the six pages of references at the end of this paper. In presenting all the facts and pertinent studies we could uncover, we also offer opinions about how they should be viewed. In all of this, you will find that we work to avoid ‘boosterism’ of real estate, preferring instead to draw the more conservative conclusion from among the possible. In doing so, we believe we can draw a more balanced picture as to why real estate belongs in the world of fiduciary investing.  

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  • Fundtracker Reports
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i3 Fundraising Report Q3/2021

Following a significant uptick in the second quarter, private equity infrastructure fundraising activity fell back to a more normal level in Q3/2021, according to the i3 fundraising database. Despite trailing Q2/2021, the third quarter still came in well ahead of Q3/2020.

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FundTracker TrendWatch 01-22-21

According to IREI's FundTracker database, the COVID-19 pandemic may have finally affected fundraising. Preliminary fourth quarter 2020 numbers show only 14 funds closed and only $13.48 billion in capital raised, the lowest fundraising total since first quarter 2013.

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FundTracker TrendWatch 12-08-20

According to IREI's FundTracker database, preliminary fourth-quarter numbers show only four fund closings thus far, raising approximately $4.6 billion. There are 18 more funds in the FundTracker database targeting a close by year-end 2020. However, even if all 18 funds close by Dec. 31, fourth quarter 2020 could produce the lowest quarterly fundraising total since fourth quarter 2011.

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FundTracker Trendwatch 10-20-20

According to IREI's FundTracker database, while preliminary data for the third quarter indicates a drop-off from the previous quarter ($43.4 bilion was raised by funds closing in the second quarter), it is actually an increase on a year-over-year basis. The $20.7 billion raised by funds that closed in third quarter 2020 exceeds the $19.9 billion raised by funds that closed in third quarter 2019.

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FundTracker TrendWatch 09-01-20

According to IREI's FundTracker database, more than 200 infrastructure investment funds are currently seeking capital. Nearly two-thirds of those funds have global or Europe-focused strategies.

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FundTracker TrendWatch 07-28-20

According to preliminary data from IREI's FundTracker database, infrastructure fundraising in second quarter 2020 fell considerably compared to first quarter, with eight funds raising more than $13 billion in the second quarter. In First quarter, 14 funds raised more than $39 billion and in fourth quarter 2019, eight funds closed on more than $41 billion.

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FundTracker TrendWatch 07-21-20

According to IREI's FundTracker database, preliminary numbers indicate real estate investment funds closing in second quarter 2020 raised the highest second quarter total since second quarter 2008 and the highest overall quarterly total since first quarter 2019's record-setting $63.7 billion.

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FundTracker TrendWatch 05-19-20

According to IREI's FundTracker database, investors have favored the relatively safe markets of North America and Europe during the past 12 months, with global funds accounting for just 14 percent of the capital raised by funds closing in that period.

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FundTracker TrendWatch 04-28-20

According to IREI's FundTracker database, preliminary data shows infrastructure fundraising in first quarter 2020 nearly matched fourth quarter 2019, with 14 funds raising more than $39 billion. In fourth quarter 2019, eight funds raised more than $41 billion. Nearly twice the number of funds closed in first quarter 2020 but raised a similar amount of capital as was raised in fourth quarter 2019.

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FundTracker TrendWatch 04-21-20

According to IREI's FundTracker database, preliminary data shows the number of real estate funds closing are down to 22 in first quarter 2020, compared with 35 funds in the first three months of 2017. Many funds were closing when the COVID-19 pandemic was just reaching the U.S., but the pandemic doesn't seem to have skewed the numbers too much as of now.

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FundTracker TrendWatch 03-03-20

According to IREI's FundTracker database, infrastructure funds are continuing to increase in size, fueled by the emergence of the ultra-mega-fund. At the same time, it took a bit longer for the average 2019 infrastructure fund to close than the average 2018 fund.

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FundTracker TrendWatch 02-18-20

According to IREI's FundTracker database, mega-funds have grown exponentially during the past three years, while non-mega funds have remained relatively stable. Although the average mega-fund reaches the final closing a bit faster than the average non-mega fund, all funds are closing in about 17 months, on average.

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FundTracker TrendWatch 01-21-20

According to IREI's FundTracker database, after a record-setting start to the year, fundraising fizzled in the second half of 2019. Preliminary data shows fundraising totaled $119.2 billion for the last year.

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FundTracker TrendWatch 10-10-19

According to IREI’s FundTracker database, decline in real estate fund closings is taking a more dramatic downturn with approximately 16 funds closing in third quarter 2019, compared to 23 funds in second quarter 2019 and 28 in first quarter 2019.

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FundTracker TrendWatch 09-03-19

According to IREI’s FundTracker database, close to 200 infrastructure funds are currently open for investment. Europe and Global/Multi-regional strategies combine for approximately 60 percent of those funds, but other regions are also seeing a fair amount of activity.

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FundTracker TrendWatch 08-20-19

According to IREI’s FundTracker database, there are approximately 800 real estate investment funds currently seeking capital. Slightly more than half are closed-end funds, with the rest being open-end or semi-open funds.

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FundTracker TrendWatch 07-23-19

According to IREI’s FundTracker database, infrastructure investment managers closed nine funds in Q2 2019, raising nearly $16.3 billion. Our preliminary data finds that fewer funds are raising less capital compared to Q2 2018, when 15 funds held final closings, raising more than $19 billion.

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FundTracker TrendWatch 07-16-19

According to IREI’s FundTracker database, roughly $17.4b was raised in Q2 2019, based on preliminary data. Thanks to a number of large mega-funds, record fundraising activity was registered in Q1 2019, which will likely push first-half 2019 volume to a record high once final Q2 data is available.

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FundTracker TrendWatch 06-04-19

According to IREI’s FundTracker database, more than half the capital raised by infrastructure funds reaching a final close during the past three years, the past 12 months and YTD 2019 went to global or multi-regional strategies.

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FundTracker TrendWatch 05-21-19

According to IREI’s FundTracker, global/multi-regional funds are leading the fundraising pack, accounting for more than 70 percent of the capital raised by funds reaching a final close year-to-date 2019.

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FundTracker TrendWatch 03-05-19

The average size of an infrastructure private equity fund increased slightly in 2018 — to $2.0 billion — but the average closing time decreased to 17.1 months compared with 20.7 months in 2017.

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FundTracker TrendWatch 12-18-18

The ever expanding size of funds in infrastructure markets is a trend that isn’t likely to end anytime soon. In fact, the definition of mega-funds — those funds with final closes of $2 billion or more — might need to be updated to reflect funds that are increasingly targeting $10s of billions in capital commitments.

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FundTracker TrendWatch 9-25-18

According to IREI’s FundTracker database, 288 infrastructure investment funds are currently marketing. Of those, 37 are open-end, six are semi-closed-end (having a long but finite fundraising period), and the remaining are closed-end.

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FundTracker TrendWatch 9-11-18

According to the IREI FundTracker database, there are 336 open-end funds, 460 closed-end funds and 36 semi-closed end (has a 7- to 10-year fundraising window) funds currently soliciting capital.

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FundTracker TrendWatch 8-21-18

According to IREI’s FundTracker database, infrastructure mega-funds have accounted for 76 percent of the capital raised, as of Aug. 1, 2018. In addition, more mega-funds have already closed YTD than in any of the past five years.

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FundTracker TrendWatch 7-17-18

According to IREI’s FundTracker database, infrastructure fundraising is on pace to have a very good year. If the second half proves as positive as the first, it could even be a record year.

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FundTracker TrendWatch 7-3-18

According to the FundTracker database, real estate investment fundraising in the first half of 2018 is tracking well ahead of the first half of 2017 and 2016. If fundraising continues at the same pace it has in  previous years, total commitments in 2018 could top those of the record-setting 2015.

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FundTracker TrendWatch 6-19-18

In 2016, 16 percent of the infrastructure funds reaching a final closing were debt funds. Last year, that percentage fell to 7 percent. When looking at capital raised, 2016 saw 8 percent of the total capital coming from debt funds. In 2017, that total fell to 5 percent. The trend looks to be continuing into 2018.

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FundTracker TrendWatch 6-5-18

According to the IREI FundTracker database, real estate investment funds with a debt component accounted for 28 percent of the funds reaching final close in 2017, up from 2016’s 22 percent share. They also accounted for 44 percent of the capital raised in 2017, versus 32 percent in 2016.

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FundTracker TrendWatch 5-15-18

According to the IREI FundTracker database, investors are showing a strong preference for regionally focused funds, with global funds continuing to raise less capital than other strategies.

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FundTracker TrendWatch 5-8-18

According to IREI’s FundTracker database, global funds account for 41 percent of the capital raised YTD 2018 in funds reaching a final closing. In 2017, global funds accounted for only 18 percent of the capital raised.

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FundTracker TrendWatch 4-17-18

According to the IREI FundTracker database, private equity infrastructure funds closing in first quarter 2018 raised significantly less capital than those closing first quarter 2017. If things continue in this direction, it will add 2018 to the ebb and flow pattern seen since at least 2013, where odd number years are good for infrastructure fundraising, and even numbered years not so good.

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FundTracker TrendWatch 3-20-18

According to data from IREI’s FundTracker database, infrastructure funds are continuing to grow in size, with the largest dominating the market. Funds raising more than $2 billion accounted for 74 percent of the capital raised, while funds raising $3 billion or more brought in 56 percent of the capital. Those raising less than $500 million accounted for only 4 percent of the total capital raised.

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FundTracker TrendWatch 3-6-18

During the past three years, more than 60 percent of capital was raised by mega-funds. Funds raising less than $500 million accounted for about 60 percent of the number of funds, but less than 20 percent of the capital raised.

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FundTracker TrendWatch 2-20-18

According to IREI’s FundTracker database, infrastructure funds took a bit more time to close in 2017 than they did in 2016. Averages can be deceiving, however, as both the two fastest and two slowest closing funds were European.

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FundTracker TrendWatch 2-6-18

According to IREI’s FundTrack database, real estate funds holding a final close in 2017 were on offer for about 18.0 months. This compares to 18.7 months in both 2014 and 2015, and 19 months in 2016. Trimmed averages confirm that marketing times are inching down, with 2017’s trimmed mean coming in at 17.1 months compared to 17.7 months and 17.6 months in 2015 and 2016, respectively.

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FundTracker TrendWatch 1-16-18

According to IREI’s FundTracker database, preliminary 2017 numbers indicate that infrastructure fundraising has continued its ebb and flow fundraising pattern, with 2014 being a down year, 2015 being up, 2016 being down and 2017 being up again. During this time, the market is moving in an overall upward direction.

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FundTracker TrendWatch 1-2-18

According to IREI’s FundTracker database, only 19 funds have reported a final closing so far in Q4 2017, with an aggregate total of capital raised coming in at $13.6 billion. This is significantly fewer than the number of funds closed in Q4 2016, as well as significantly less capital raised.

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FundTracker TrendWatch 12-19-17

According to IREI’s FundTracker database, 2017 infrastructure fundraising is very similar to that of 2016. Total aggregate capital raised, total number of funds closed, average size of funds and other 2017 metrics are nearly the same as 2016.

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FundTracker TrendWatch 12-5-17

TrendWatch updates a few of the charts used during the year and finds investors continuing to move to the defensive end of the spectrum, investment funds continuing to grow in size, mega-funds continuing to dominate, and investment totals continuing to trend down.

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FundTracker TrendWatch 11-21-17

Based on capital raised by infrastructure funds holding a final closing in the past three years, just five managers have raised 35 percent of the capital, despite being only 8 percent of the managers sponsoring funds closing since Jan. 1, 2015. The top 10 managers brought in 51 percent of the capital.

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FundTracker TrendWatch 11-07-17

According to the Global Investment Managers 2017 survey, the top 20 real estate investment firms now control more than half of the world’s real estate assets under management. These firms increased their market share by 1 percent year-over-year, which is pretty significant when based on the $3 trillion in assets under management reported by the 199 firms responding to the survey.

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FundTracker TrendWatch 10-17-17

We’re three-quarters of the way through 2017, and it appears that 2017 infrastructure fundraising has a very good chance of coming in ahead of 2016, and is enticingly close to surpassing 2015, as well. In addition, the average size of funds reaching final closing is continuing to grow.

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FundTracker TrendWatch 10-03-17

Early third quarter numbers are in, and they continue to point to 2017 being a down year for real estate investment funds when compared to 2015 and 2016. The amount of capital raised, number of funds reaching a final close and the average size of the funds were all down in Q3/17, as well as in the first three quarters combined, when compared to the same time periods in previous years.

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FundTracker TrendWatch 09-19-17

According to IREI’s FundTracker database, more than two-thirds of the infrastructure funds launched since the beginning of 2014 are still seeking investors. Europe is favored when looking at sheer numbers of funds, but global strategies jump to the top when looking at the amount of capital sought.

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FundTracker TrendWatch 09-05-17

More than 900 private equity real estate funds are currently in the marketing phase of their lifecycle, with about two-thirds of those being closed-end funds. One third of the funds in the market were launched in 2016 or 2017, but more than 160 closed-end funds were first offered prior to 2014.

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FundTracker TrendWatch 08-22-17

According to IREI’s FundTracker database, nearly four-fifths of capital raised by infrastructure funds holding a final close in 2017 has been committed to a mega-fund — those funds raising $2 billion or more. Average mega-fund size is continuing to increase, as is the range between the smallest and largest mega-funds.

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FundTracker TrendWatch 07-18-17

According to the IREI FundTracker database, less than $3 billion was raised by infrastructure funds reaching a final close in the second quarter of 2017. Thanks to the $15.8 billion GIP III fund closing in the first quarter, first half 2017 is still well ahead of first half 2016, but fundraising trends don’t bode well for the rest of the year.

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FundTracker TrendWatch 06-20-17

According to IREI’s FundTracker database, infrastructure debt funds are having trouble gaining traction. They accounted for less than 8% of the capital raised by infrastructure funds reaching a final close in 2016. So far in 2017, they have failed to show up at all, with no debt fund closing year to date.

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FundTracker TrendWatch 06-06-17

According to IREI’s FundTracker database, debt-only funds plus funds with a debt component made up 40 percent of the capital closed in 2014. That market share has fallen each year until it now stands at just 27 percent of capital raised YTD 2017.

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FundTracker TrendWatch 05-16-17

According to the IREI FundTracker database, global infrastructure funds have grown both in size and market share during the past three years and are currently dominating the infrastructure fundraising market. In contrast, U.S. funds have seen their share of the market fall to just 12 percent in 2016, and less than 1 percent YTD 2017.

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FundTracker TrendWatch 04-18-17

Fundraising totals for infrastructure funds reaching final closing in first quarter 2017 reached more than $30 billion, according to IREI’s FundTracker database. One fund accounted for more than half this total.

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FundTracker TrendWatch 04-04-17

According to IREI’s FundTracker database, fundraising totals are significantly down in the first quarter of 2017 when compared to the same periods of 2015 and 2016. These first quarter numbers are preliminary and will change as additional data is captured, but it is unlikely first quarter 2017 will approach the total of first quarter 2016, which itself was lower than the total raised in first quarter 2015.

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FundTracker TrendWatch 03-21-17

According to IREI’s FundTracker database, infrastructure mega-funds — those $2 billion or more in size — have accounted for 70 percent of the capital raised by closed funds since 2014. These funds have increased their market share each year since 2012, and are on track to continue this trend into 2017.

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FundTracker TrendWatch 03-07-17

March, 2017 — According to IREI’s FundTracker database, mega-funds are still raising more than their fair share of capital, with their three-year rolling averages continuing to trend upward. However, their percentage of the total market fell in 2016 versus 2015.

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FundTracker TrendWatch 02-21-17

February, 2017 — According to the IREI FundTracker database, infrastructure funds reaching final closing in 2016 were in the market almost 20 percent longer than those closing in 2015. Their 18.2-month average was the longest since 2012.

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FundTracker TrendWatch 02-07-17

February, 2017 — According to IREI’s FundTracker database, real estate funds holding a final closing in 2016 were only in the market, start to finish, for about 18 months, on average. Global funds, debt funds and mega-funds all reached a final closing significantly sooner than the mean.

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FundTracker TrendWatch 01-17-17

January, 2017 — According to IREI’s FundTracker database, infrastructure funds reaching final close in 2016 raised an aggregate of $56.4 billion, coming in slightly ahead of 2015’s total. Mega-funds accounted for 33 percent of all funds closed, while raising 75 percent of the year’s total capital.

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FundTracker TrendWatch 01-03-17

January, 2017 — According to IREI’s FundTracker database, 2016 was a solid, but not spectacular, fundraising year, with annual capital raised coming in at $90 billion, well short of 2015’s $110 billion total.

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FundTracker TrendWatch 12-20-16

December, 2016 — 2016 is turning out to look like a repeat of 2015 in the infrastructure fundraising arena. The number of funds closed and capital raised are the same, or nearly the same, YTD 2016 as that of 2015. Other metrics also bring a sense of déjà vu.

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FundTracker TrendWatch 12-06-16

December, 2016 — According to IREI’s FundTracker database, 2016 is trailing 2015’s fundraising totals by about $25 billion. In addition, investors are looking toward more defensive strategies, such as debt funds, and stepping back a bit from higher-return strategies.

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FundTracker TrendWatch 11-22-16

November, 2016 — According to the IREI FundTracker database, the top infrastructure managers continue to control an outsized share of the market, with sponsors of the five largest funds accounting for nearly one-quarter of the capital raised since 2014. Sponsors of the 10 largest funds closing in that time account for about 38 percent of the capital raised.

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FundTracker TrendWatch 11-08-16

November, 2016 — According to IREI’s FundTracker, the real estate investment industry grew about 13 percent by year-end 2015. As in past years, much of the growth was consolidated in a few top firms, with the top two firms alone being responsible for more than 10 percent of the world’s AUM.

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FundTracker TrendWatch 10-04-16

October, 2016 — Continuing the trend found in the first two quarters of 2016, fewer funds reached final closing, and less capital was raised, in third quarter 2016 than in third quarter 2015. Two funds were responsible for 40 percent of the capital raised in that quarter.

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FundTracker TrendWatch 09-20-16

September, 2016 — According to IREI’s TrendWatch, 52 percent of the infrastructure funds reaching final close since Jan. 1, 2014, focused on energy strategies. Energy funds also account for 46 percent of infrastructure funds launched in that time period.

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FundTracker TrendWatch 09-07-16

September, 2016 — According to IREI’s FundTracker database, diversified funds accounted for 42 percent of the real estate funds closed, and 52 percent of the capital raised, since Jan. 1, 2015. The second most-popular sector focus was debt, followed by residential funds.

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FundTracker TrendWatch 08-16-16

August, 2016 — Infrastructure mega-funds have accounted for 78 percent of capital raised by infrastructure funds closing year-to-date 2016. One fund accounted for nearly 38 percent of all capital raised YTD.

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FundTracker TrendWatch 08-02-16

August, 2016 — Mega-funds, which accounted for 66 percent of the capital closed in 2015 only account for 55 percent so far this year. They are also taking slightly longer to close than in previous years.

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FundTracker TrendWatch 07-19-16

July, 2016 — Funds closing in second quarter 2016 raised only 34 percent of capital raised by funds closing in the same time period of 2015. Based on amount of capital raised YTD, 2016 is proving to be a very slow year for infrastructure.

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FundTracker TrendWatch 07-05-16

July, 2016 — The trend of fewer real estate investment funds raising larger amounts of capital is continuing quarter-over-quarter and year-over-year. When looking at funds holding final closes in second quarter 2016, three of the 24 funds closed accounted for 55 percent of the capital raised.

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FundTracker TrendWatch 06-21-16

June, 2016 — In the past 30 months, infrastructure funds holding a final closing have raised $124.3 billion. Just $9.4 billion of that total came from debt funds. So far in 2016, only one debt fund has closed, raising $647 million for Europe infrastructure.

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FundTracker TrendWatch 06-07-16

June, 2016 — According to IREI’s FundTracker database, the amount of capital raised by debt funds has slowed but, because the entire fundraising market has slowed, their market share has increased. North America and Europe continue to attract the lion’s share of interest.

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FundTracker TrendWatch 05-24-16

May, 2016 — Based on YTD data, 2016 is looking like it will be a weak fundraising year for infrastructure. Amount of capital raised by funds closed, amount of capital targeted by nearly launched funds, and absolute number of funds launched and closed are all down year-over-year — as well as down year over multiple years.

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FundTracker TrendWatch 05-10-16

May, 2016 — Only 62 funds have launched this year compared to 101 during the same time period last year, and only 34 funds have closed versus 41 at this time in 2015. North America, in particular, has seen a fall off in interest.

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FundTracker TrendWatch 04-19-16

April, 2014 — According to preliminary first quarter 2016 numbers, the number of infrastructure funds reaching a final close in the first quarter has continued to decrease while the size of those funds has increased. In addition, the time from launch to final closing is increasing.

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FundTracker TrendWatch 04-05-16

April, 2016 — Based on early numbers for first quarter 2016, real estate fundraising is chugging along at a steady pace, with amounts raised in Q1/15 and Q1/16 being nearly identical. Higher-return strategies dominate as investors look to meet return objectives.

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FundTracker TrendWatch 03-22-16

March, 2016 — In 2013, the average infrastructure fund closed at $1.6 billion. By 2015, that average had increased to $2.2 billion. Despite the fact that non-mega funds grew to almost $1 billion on average, mega-funds still accounted for 72 percent of the capital raised by funds closing in 2015.

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FundTracker TrendWatch 03-08-16

March, 2016 — Mega-funds continue to take market share from smaller funds. In 2015, funds that closed with $1 billion or more in commitments accounted for 22 percent of all funds closed and 69 percent of the capital raised.

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FundTracker TrendWatch 02-23-16

February, 2016 — The amount of time the average fund takes from beginning to final close has crept up over the past year. Funds focused on North America and/or energy, however, closed more than 33 percent faster than the overall average.

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FundTracker TrendWatch 02-09-16

February, 2016 — According to IREI’s FundTracker database, the amount of time real estate funds are in the market has fallen steadily since 2013. Large funds, global funds and higher-return funds had the shortest closing times.

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FundTracker TrendWatch 01-26-16

January, 2016 — According to IREI’s FundTracker database, infrastructure investors can choose from more than 275 funds now in the market. Investment options range from debt to equity, from open-end to closed-end, from regionally focused to globally focused, and much more.

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FundTracker TrendWatch 01-19-16

January, 2016 — According to IREI’s FundTracker, investors have more choices than ever when it comes to placing their real estate allocations. The number of funds currently marketing has grown, as has the amount of capital being sought, the number of regions being targeted and the types of structure available to investors.

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FundTracker TrendWatch 01-12-16

January, 2016 — According to FundTracker, the 21 infrastructure funds closing in 2015 raised about $45 billion. In 2014, 32 funds raised $45.1 billion. Both years are a drop from 2013’s $52 billion raise, but both still represent a significant amount of capital looking for deals.

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FundTracker TrendWatch 12-22-15

December, 2016 — As 2015 winds down, investors and managers are looking back with a sigh of relief. 2014 had been a very good year for real estate, and there was some skepticism that the good times would continue. But they did.

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FundTracker TrendWatch 12-15-15

December, 2016 — According to FundTracker, the average size of all funds having final closings in the past three years is still growing — increasing from $507 million in 2013 to $883 million YTD 2015. Much of this increase, however, is due to the increasing size of mega-funds, which came in at $1.8 billion in 2013 and $2.7 billion YTD 2015.

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FundTracker TrendWatch 12-08-15

December, 2015 — TrendWatch tracked open-end funds launched since the beginning of 2011. The number launched each year grew through 2013, then began a slide that mirrored the growth years.

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FundTracker TrendWatch 12-01-15

December, 2015 — According to IREI's FundTracker database, 74 percent of all capital raised by funds closed year-to-date has been for higher-return strategies. In addition, the average fund size of higher-return funds is more than double that of lower-return or mid-return funds.

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FundTracker TrendWatch 11-10-15

November, 2015 — Despite investors often voicing a preference for sector-specific funds, the vast majority of real estate investment funds are diversified across all sectors. Another large percentage have mandates for two sectors. Few are truly sector-specific.

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FundTracker TrendWatch 11-03-15

November, 2015 — Despite the interest in infrastructure financing, only six infrastructure debt funds have closed since Jan. 1, 2013, according to IREI’s FundTracker. In total, these funds raised less than $10 billion.

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FundTracker TrendWatch 10-27-15

October, 2017 — Based on FundTracker data, real estate debt funds have become a significant part of the market. The amount of capital raised by funds with a debt component is significantly greater than their numbers would indicate.

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FundTracker TrendWatch 10-20-15

October, 2015 — TrendWatch finds that more infrastructure funds are launched in January than any other month. October is the most popular month for fund closings, while funds closed in April raised the most capital.

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FundTracker TrendWatch 10-13-15

October, 2016 — During the past four years, more funds were launched in January than any other month of the year. In fact, more than double the number of funds were launched in the first month of the year than in June, the second most popular month. June turns out to be the second most-popular month for closings, as well.

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FundTracker TrendWatch 09-29-15

September, 2015 — So far in 2015, 110 new real estate funds have launched, seeking an aggregate total of more than $50 billion. Of those funds, nearly 80 percent are focused on North America and Europe.

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FundTracker TrendWatch 09-22-15

September, 2015 — Despite a dearth of traditional infrastructure deals (i.e. anything except energy), the United States continues to attract more than 60 percent of the infrastructure capital raised by funds closed since 2013.

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FundTracker TrendWatch 09-08-15

September, 2015 — According to the Global Investment Managers 2015 survey, the top 20 real estate investment managers now control more than 50 percent of the total real estate AUM — and if trends continue, they’ll control even more next year as all firms in the top 10 have increased their AUM each year for the past two years.

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FundTracker TrendWatch 09-01-15

September, 2015 — According to IREI's FundTracker database, infrastructure funds launched since 2013 have been highly successful in meeting their goals, with the total raise reaching 71% of the total target. Only 32% of those funds have held final closings, but of the closed funds, 66% were oversubscribed.

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FundTracker TrendWatch 08-25-15

August, 2015 — According to data from FundTracker, 8 percent of the funds launched since 2013 have been sponsored by emerging managers. While the maximum fund size for funds launched by established managers is nearly 87 percent larger than the average emerging manager's fund size, most of the other data indicates that emerging managers are doing just as well as established managers when it comes to accessing capital.

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FundTracker TrendWatch 08-18-15

August, 2015 — According to the IREI FundTracker, the number of infrastructure funds launched in first half 2015 has fallen by 39 percent compared to the number launched in first half 2014. The number of funds closed has also fallen, though the amount of capital raised has increased.

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FundTracker TrendWatch 08-11-15

August, 2015 — According to the IREI FundTracker, the first half of 2015 is a bit mixed when compared to the first half 2014. Fewer funds launched in 1H15 than in 1H14, but more funds have closed this year than last. The amount of capital raised in the first half of 2015 is about 37 percent more than that raised in the same period in 2014.

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FundTracker TrendWatch 08-03-15

August, 2015 — Energy funds have accounted for 57 percent of the total infrastructure funds launched and closed over the past three years, as measured by targeted and raised capital. And the attraction has increased each year, to the point that nearly all new funds launched in 2015 are energy focused. Where does this leave the other infrastructure sectors?

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FundTracker TrendWatch 07-27-15

July, 2015 — Mega-funds are capturing a larger market share than ever before. They now account for about 14 percent of the funds closed but about 65 percent of the capital raised YTD 2015.

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FundTracker TrendWatch 07-20-15

July, 2015 — Based on the infrastructure funds that have closed YTD 2015, the average fundraising period has fallen to less than a year. Americas-focused infrastructure funds closed in the shortest amount of time among the regions, while energy funds led the sectors.

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FundTracker TrendWatch 07-13-15

July, 2015 — Based on the funds that have closed YTD 2015, the average time for a fund to be in the market is now a little less than 17 months, compared to a little more than 17 months for all of 2014. Global funds, debt funds and mega funds are finding the most acceptance.

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FundTracker TrendWatch 07-07-15

July, 2015 — According to the IREI FundTracker database, the number of infrastructure funds launched during 2015 has slowed dramatically compared to previous years. The average fund size, however, remains well over $1 billion. To no one’s surprise, nearly all newly launched infrastructure funds are focused on the energy or renewables sector. For more details on what is going on in the market — and why investors are constantly in play, view the report.

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FundTracker TrendWatch 06-29-15

June, 2015 — With real estate reaching pre-recession levels in the major gateway cities and moving in the right direction in secondary regions, it is safe to say that real estate is back, and with it, funds are seeing a strong resurgence. According to the IREI FundTracker database, there are at least 25 more funds being marketed now than there were in January. For more details on what is in the market — and why investors will undoubtedly find their phones ringing nonstop this year.

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  • Reports for Investment Managers
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Global Investment Managers 2023 USD

Rising interest rates have posed a challenge for commercial real estate in the past year. As the transaction market cooled, valuations have shown some signs of softening. Falling stock prices further affected the industry, creating a denominator problem for investors. Amidst these challenges, the global real estate industry grew by 7 percent year-over-year, according to the findings of Global Investment Managers 2023, the results of the annual survey sponsored by Property Funds Research and Institutional Real Estate, Inc. The survey received responses from 228 investment managers that represent total global real estate assets under management of $6.09 trillion (based on 2022 AUM figures), an increase from the previous year’s survey total of $5.68 trillion (based on 228 survey respondents).

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Global Investment Managers 2023 Euros

Rising interest rates have posed a challenge for commercial real estate in the past year. As the transaction market cooled, valuations have shown some signs of softening. Falling stock prices further affected the industry, creating a denominator problem for investors. Amidst these challenges, the global real estate industry grew by 7 percent year-over-year, according to the findings of Global Investment Managers 2023, the results of the annual survey sponsored by Property Funds Research and Institutional Real Estate, Inc. The survey received responses from 228 investment managers that represent total global real estate assets under management of €5.57 trillion (based on 2022 AUM figures), an increase from the previous year’s survey total of €5.1 trillion (based on 228 survey respondents).

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Global Investment Managers 2022 Euros

Despite the continuing adverse effects of the coronavirus pandemic on societies and economies around the world, the institutional real estate asset class and industry continued to record impressive performance and growth in 2021. In fact, the global real estate industry grew by a phenomenal 22 percent year-over-year, according to the findings of Global Investment Managers 2022, the results of the annual survey sponsored by Property Funds Research and Institutional Real Estate, Inc. The survey received responses from 228 investment managers that represent total global real estate assets under management of €5.1 trillion (based on 2021 AUM figures), a substantial increase from last year’s survey total of €4.1 trillion (based on 212 survey respondents).

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Global Investment Managers 2022 USD

Despite the continuing adverse effects of the coronavirus pandemic on societies and economies around the world, the institutional real estate asset class and industry continued to record impressive performance and growth in 2021. In fact, the global real estate industry grew by a phenomenal 22 percent year-over-year, according to the findings of Global Investment Managers 2022, the results of the annual survey sponsored by Property Funds Research and Institutional Real Estate, Inc. The survey received responses from 228 investment managers that represent total global real estate assets under management of $5.68 trillion (based on 2021 AUM figures), a substantial increase from last year’s survey total of $4.65 trillion (based on 212 survey respondents).

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Urban Industrial in Europe: Lower risks, higher returns, November 2021

Marek Handzel, editor of Institutional Real Estate Europe

Urban logistics assets are generally utilised to provide the “last-mile” fulfillment for ecommerce operators. They have risen in importance due to ever-shortening delivery time expectations, as well as various new entrants to the market, such as grocery retailers. In addition to ecommerce, smaller-format units are generally favoured by traditional industrial operators as well. This has already translated into much higher rental growth for urban logistics when compared with their big-box peers. Data produced by Property Markets Analysis, shows that urban logistics rents were almost 40 percent higher in 2020 than they were in 2007 — while other logistics rents have not progressed much over the past decade.

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Global Investment Managers 2021 Euros

The global real estate industry continues to reach new heights post–global financial crisis. During the past decade, the asset class has gained in popularity across the globe, delivering steady income and solid returns in the ongoing low interest-rate environment. This year's survey, which captured 2020 figures from 212 investment managers, pegged total AUM at €3.81 trillion, an impressive increase from the 2010 total of €1.25 trillion. In addition, global AUM is up 12.9 percent from €3.67 trillion reported in last year's survey. The 2020 rankings include 10 firms with AUM greater than $100 billion, compared with eight firms last year. Only five short years ago, that exclusive club numbered only two — Brookfield Asset Management and Blackstone.

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Global Investment Managers 2021 USD

The global real estate industry continues to reach new heights post–global financial crisis. During the past decade, the asset class has gained in popularity across the globe, delivering steady income and solid returns in the ongoing low-interest rate environment. This year's survey, which captured 2020 figures from 212 investment managers, pegged total AUM at $4.65 trillion, an impressive increase from the 2010 total of $1.47 trillion. In addition, global AUM is up 12.9 percent from $4.12 trillion reported in last year's survey. The 2020 rankings include 10 firms with AUM greater than $100 billion, compared with eight firms last year. Only five short years ago, that exclusive club numbered only two — Brookfield Asset Management and Blackstone.

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Global Investment Managers 2020 USD

The aggregate AUM of the top 100 real estate largest investment managers increased by 9.1 percent, totaling more than $3.83 trillion, according to Global Investment Managers 2020, the annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. For some perspective, at year-end 2008, the aggregate AUM of the top 100 investment managers totaled $1.2 trillion. A total of 207 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of nearly $4.12 trillion. The top 10 largest investment managers accounted for $1.35 trillion of AUM, which represents 32.6 percent of the total. The 2020 report, based on 2019 AUM figures, showed eight investment managers with assets of more than $100 billion, up from only three in 2017. The eye opener is the fact that there are two investment managers with assets of more than $200 billion.

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Global Investment Managers 2020 Euros

The aggregate AUM of the top 100 largest real estate investment managers increased by 9.1 percent, totaling more than €3.41 trillion, according to Global Investment Managers 2020, the annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. For some perspective, at year-end 2008, the aggregate AUM of the top 100 investment managers totaled €85 billion. A total of 207 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of nearly €3.67 trillion. The top 10 largest investment managers accounted for €1.2 trillion of AUM, which represents 32.6 percent of the total. The 2020 report, based on 2019 AUM figures, showed four investment managers with assets of more than €100 billion, up from only three in 2017. The eye opener is the fact that there are two investment managers with assets of more than €150 billion.

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Global Investment Managers 2019 USD

The aggregate AUM of the top 100 largest real estate investment managers totals nearly $3.48 trillion, according to Global Investment Managers 2019, the annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. For some perspective, at year-end 2008, the aggregate AUM of the top 100 investment managers totaled $1.2 trillion. A total of 206 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of more than $3.7 trillion. The top 10 firms in this year’s rankings totaled more than $1.2 trillion of AUM — a 6.1 percent increase from last year — a total that represents 33.5 percent of the entire survey universe. Additional evidence of a concentration of assets in this top-heavy industry: the top 20 firms account for AUM of $1.865 trillion (49.6 percent of the total universe), which is nearly as much as the other 186 investment managers in the survey ($1.892 trillion).

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Global Investment Managers 2019 Euros

The aggregate AUM of the top 100 largest real estate investment managers total nearly €3.04 trillion, according to Global Investment Managers 2019, the annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. For some perspective, at year-end 2008, the aggregate AUM of the top 100 investment managers totaled €0.85 trillion. A total of 206 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of more than €3.23 trillion. The top 10 firms in this year’s rankings totaled more than €1.07 trillion of AUM — a 6.1 percent increase from last year — a total that represents 33.5 percent of the entire survey universe. Additional evidence of a concentration of assets in this top-heavy industry: the top 20 firms account for AUM of €1.628 trillion (49.6 percent of the total universe), which is nearly as much as the other 186 investment managers in the survey (€1.654 trillion).

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Global Investment Managers 2018 USD

The aggregate AUM of the top 100 largest investment managers increased by 15.8 percent in 2017, totaling more than $3.2 trillion, according to Global Investment Managers 2018, the annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. For some perspective, at year-end 2008, the aggregate AUM of the top 100 investment managers totaled $1.2 trillion. A total of 197 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of nearly $3.5 trillion. The top 10 largest investment managers accounted for $1.154 trillion of AUM, which represents 33.2 percent of the total. This group of managers saw their AUM increase 11.2 percent from year-end 2016. The 2017 report, based on 2016 AUM figures, showed only three investment managers with assets of more than $100 billion. In this year’s rankings, six firms eclipsed the $100 billion mark.

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Global Investment Managers 2018 Euros

The aggregate AUM of the top 100 largest investment managers totaled more than €2.71 trillion, according to Global Investment Managers 2018, the annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. For some perspective, at year-end 2008, the aggregate AUM of the top 100 investment managers totaled €1.44 trillion. A total of 197 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of nearly €2.90 trillion. The top 10 largest investment managers accounted for €961.5 billion of AUM, which represents 33.2 percent of the total. This group of managers saw their AUM increase 11.2 percent from year-end 2016. The 2017 report, based on 2016 AUM figures, showed only three investment managers with assets of more than €80 billion. In this year’s rankings, six firms eclipsed the €80 billion mark.

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Global Investment Managers 2017 USD

The aggregate AUM of the top 100 largest investment managers increased 7.3 percent in 2016, totaling more than $2.8 trillion, according to Global Investment Managers 2017, an annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. A total of 199 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of slightly more than $3 trillion. The top 10 largest investment managers accounted for $1.038 trillion of AUM, which represents 34.5 percent of the total. This group of managers saw their AUM increase an average of 12.2 percent from 2015. Blackstone topped the rankings with more than $166 billion of AUM, followed by Brookfield Asset Management and PGIM, with $148 billion and $125 billion of AUM, respectively.

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Global Investment Managers 2017 Euros

The aggregate AUM of the top 100 largest investment managers increased 7.3 percent in 2016, totaling more than €2.7 trillion, according to Global Investment Managers 2017, an annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. A total of 199 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of slightly more than €2.8 trillion. The top 10 largest investment managers accounted for €0.98 trillion of AUM, which represents 34.5 percent of the total. This group of managers saw their AUM increase an average of 12.2 percent from 2015. Blackstone topped the rankings with more than €158 billion of AUM, followed by Brookfield Asset Management and PGIM, with €140 billion and €119 billion of AUM, respectively.

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Global Investment Managers 2016 – Euros

2016 — A number of managers enjoyed double-digit growth in AUM during the past year, according to Global Investment Managers 2016, an annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. The industry’s top two largest investment managers, Brookfield Asset Management, with €137.1 billion in AUM as of year-end 2015, and The Blackstone Group, with €135.8 billion in AUM, recorded growth of 19 percent and 22 percent, respectively, based on figures reported in the prior year’s survey. The two behemoths continue to outpace others in the industry, as there is a growing and sizable gap between them and the other largest investment management firms. Blackstone has become a fundraising machine. In early 2015, the firm closed its Blackstone Real Estate Partners VIII, raising a record €14.5 billion of equity. Brookfield also made a large haul recently, closing its Brookfield Strategic Real Estate Partners II in April 2016 with €8.2 billion of equity. This year’s report captures data on 194 real estate investment managers around the globe. As a group, they control nearly €2.7 trillion of real estate assets. Also indicative of the jump in AUM, the top 10 largest managers, as a group, experienced a 12 percent increase from the previous year; the top 100 managers recorded a 14 percent increase.  

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Global Investment Managers 2016 – USD

2016 — A number of mangers enjoyed double-digit growth in AUM during the past year, according to Global Investment Managers 2016, an annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. The industry’s top two largest investment managers, Brookfield Asset Management, with $149.8 billion in AUM as of year-end 2015, and The Blackstone Group, with $147.6 billion in AUM, recorded growth of 19 percent and 22 percent, respectively, based on figures reported in the prior year’s survey. The two behemoths continue to outpace others in the industry, as there is a growing and sizable gap between them and the other largest investment management firms. Blackstone has become a fundraising machine. In early 2015, the firm closed its Blackstone Real Estate Partners VIII, raising a record $15.8 billion of equity. Brookfield also made a large haul recently, closing its Brookfield Strategic Real Estate Partners II in April 2016 with $9 billion of equity. This year’s report captures data on 194 real estate investment managers around the globe. As a group, they control nearly $2.8 trillion of real estate assets. Also indicative of the jump in AUM, the top 10 largest managers, as a group, experienced a 12 percent increase from the previous year; the top 100 managers recorded a 14 percent increase.

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Global Investment Managers 2015 – Euros Version

2015 — The Blackstone Group and Brookfield Asset Management continue their rivalry for the top spot among real estate investment managers. In the 2012 survey, Brookfield held the number 1 position. Last year, Blackstone moved ahead. And this year, Brookfield again moved into first place. The two behemoths both have approximately €100 billion under management with BAM increasing AUM by 16 percent, moving from €78.3 billion in 2013 to €103.8 billion in 2014; Blackstone saw a 12 percent increase in AUM, going from €78.5 billion in 2013 to €99.9 billion in 2014. The top 10 firms in the survey collectively manage €679 billion of assets, or 33 percent of the total. The top three firms in the rankings — BAM, Blackstone and CBRE Global Investors — account for nearly 14 percent of the AUM total. See the full report for the complete rankings of investment management firms based on AUM.

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Global Investment Managers 2015 – USD Version

2015 — The Blackstone Group and Brookfield Asset Management continue their rivalry for the top spot among real estate investment managers. In the 2012 survey, Brookfield held the number 1 position. Last year, Blackstone moved ahead. And this year, Brookfield again moved into first place. The two behemoths both have more than $120 billion under management with BAM increasing AUM by 16 percent, moving from $107.9 billion in 2013 to $125.6 billion in 2014; Blackstone saw a 12 percent increase in AUM, going from $108.2 billion in 2013 to $121.0 billion in 2014. The top 10 firms in the survey collectively manage $822.5 billion of assets, or 33 percent of the total. The top three firms in the rankings — BAM, Blackstone and CBRE Global Investors — account for nearly 14 percent of the AUM total. See the full report for the complete rankings of investment management firms based on AUM.

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Global Investment Managers 2014 – Euros Version

2014 — The Blackstone Group climbed to the top of the rankings, claiming the number one spot as the world's largest real estate investment manager, with more than €78.5 billion of assets under management. In addition, the aggregate total assets under management for the largest 100 real estate investment management firms reached €1.55 trillion in 2013, up 10 percent from the 2012 figure of €1.41 trillion, according to Global Investment Managers 2014, a report based on an annual survey by Property Funds Research and Institutional Real Estate, Inc. See the full report for the complete rankings of investment management firms based on AUM.

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Global Investment Managers 2014 – USD Version

2014 — The Blackstone Group climbed to the top of the rankings, claiming the number one spot as the world's largest real estate investment manager, with more than $108.2 billion of assets under management. In addition, the aggregate total assets under management for the largest 100 real estate investment management firms reached $2.14 trillion in 2013, up 10 percent from the 2012 figure of $1.94 trillion, according to Global Investment Managers 2014, a report based on an annual survey by Property Funds Research and Institutional Real Estate, Inc. See the full report for the complete rankings of investment management firms based on AUM.

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Global Investment Managers 2013

2013 — This report was prepared by Property Funds Research and Institutional Real Estate, Inc. The top 20 investment managers in this year’s survey control 57 percent of the aggregate AUM reported by the 137 firms in the survey. The top 10 firms control 36 percent.

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Global Investment Managers 2012

2012 — This report was prepared by Property Funds Research and Institutional Real Estate, Inc. The top 20 investment managers in this year’s survey control 60 percent of the aggregate AUM reported by the 129 firms in the survey. The top 10 firms control 38 percent.

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  • Reports for Investors
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Urban Industrial in Europe: Lower risks, higher returns, November 2021

Marek Handzel, editor of Institutional Real Estate Europe

Urban logistics assets are generally utilised to provide the “last-mile” fulfillment for ecommerce operators. They have risen in importance due to ever-shortening delivery time expectations, as well as various new entrants to the market, such as grocery retailers. In addition to ecommerce, smaller-format units are generally favoured by traditional industrial operators as well. This has already translated into much higher rental growth for urban logistics when compared with their big-box peers. Data produced by Property Markets Analysis, shows that urban logistics rents were almost 40 percent higher in 2020 than they were in 2007 — while other logistics rents have not progressed much over the past decade.

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Global Investment Managers 2021 Euros

The global real estate industry continues to reach new heights post–global financial crisis. During the past decade, the asset class has gained in popularity across the globe, delivering steady income and solid returns in the ongoing low interest-rate environment. This year's survey, which captured 2020 figures from 212 investment managers, pegged total AUM at €3.81 trillion, an impressive increase from the 2010 total of €1.25 trillion. In addition, global AUM is up 12.9 percent from €3.67 trillion reported in last year's survey. The 2020 rankings include 10 firms with AUM greater than $100 billion, compared with eight firms last year. Only five short years ago, that exclusive club numbered only two — Brookfield Asset Management and Blackstone.

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Global Investment Managers 2021 USD

The global real estate industry continues to reach new heights post–global financial crisis. During the past decade, the asset class has gained in popularity across the globe, delivering steady income and solid returns in the ongoing low-interest rate environment. This year's survey, which captured 2020 figures from 212 investment managers, pegged total AUM at $4.65 trillion, an impressive increase from the 2010 total of $1.47 trillion. In addition, global AUM is up 12.9 percent from $4.12 trillion reported in last year's survey. The 2020 rankings include 10 firms with AUM greater than $100 billion, compared with eight firms last year. Only five short years ago, that exclusive club numbered only two — Brookfield Asset Management and Blackstone.

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Global Investment Managers 2020 USD

The aggregate AUM of the top 100 real estate largest investment managers increased by 9.1 percent, totaling more than $3.83 trillion, according to Global Investment Managers 2020, the annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. For some perspective, at year-end 2008, the aggregate AUM of the top 100 investment managers totaled $1.2 trillion. A total of 207 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of nearly $4.12 trillion. The top 10 largest investment managers accounted for $1.35 trillion of AUM, which represents 32.6 percent of the total. The 2020 report, based on 2019 AUM figures, showed eight investment managers with assets of more than $100 billion, up from only three in 2017. The eye opener is the fact that there are two investment managers with assets of more than $200 billion.

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Global Investment Managers 2020 Euros

The aggregate AUM of the top 100 largest real estate investment managers increased by 9.1 percent, totaling more than €3.41 trillion, according to Global Investment Managers 2020, the annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. For some perspective, at year-end 2008, the aggregate AUM of the top 100 investment managers totaled €85 billion. A total of 207 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of nearly €3.67 trillion. The top 10 largest investment managers accounted for €1.2 trillion of AUM, which represents 32.6 percent of the total. The 2020 report, based on 2019 AUM figures, showed four investment managers with assets of more than €100 billion, up from only three in 2017. The eye opener is the fact that there are two investment managers with assets of more than €150 billion.

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Global Investment Managers 2019 USD

The aggregate AUM of the top 100 largest real estate investment managers totals nearly $3.48 trillion, according to Global Investment Managers 2019, the annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. For some perspective, at year-end 2008, the aggregate AUM of the top 100 investment managers totaled $1.2 trillion. A total of 206 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of more than $3.7 trillion. The top 10 firms in this year’s rankings totaled more than $1.2 trillion of AUM — a 6.1 percent increase from last year — a total that represents 33.5 percent of the entire survey universe. Additional evidence of a concentration of assets in this top-heavy industry: the top 20 firms account for AUM of $1.865 trillion (49.6 percent of the total universe), which is nearly as much as the other 186 investment managers in the survey ($1.892 trillion).

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Global Investment Managers 2019 Euros

The aggregate AUM of the top 100 largest real estate investment managers total nearly €3.04 trillion, according to Global Investment Managers 2019, the annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. For some perspective, at year-end 2008, the aggregate AUM of the top 100 investment managers totaled €0.85 trillion. A total of 206 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of more than €3.23 trillion. The top 10 firms in this year’s rankings totaled more than €1.07 trillion of AUM — a 6.1 percent increase from last year — a total that represents 33.5 percent of the entire survey universe. Additional evidence of a concentration of assets in this top-heavy industry: the top 20 firms account for AUM of €1.628 trillion (49.6 percent of the total universe), which is nearly as much as the other 186 investment managers in the survey (€1.654 trillion).

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Global Investment Managers 2018 USD

The aggregate AUM of the top 100 largest investment managers increased by 15.8 percent in 2017, totaling more than $3.2 trillion, according to Global Investment Managers 2018, the annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. For some perspective, at year-end 2008, the aggregate AUM of the top 100 investment managers totaled $1.2 trillion. A total of 197 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of nearly $3.5 trillion. The top 10 largest investment managers accounted for $1.154 trillion of AUM, which represents 33.2 percent of the total. This group of managers saw their AUM increase 11.2 percent from year-end 2016. The 2017 report, based on 2016 AUM figures, showed only three investment managers with assets of more than $100 billion. In this year’s rankings, six firms eclipsed the $100 billion mark.

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Global Investment Managers 2018 Euros

The aggregate AUM of the top 100 largest investment managers totaled more than €2.71 trillion, according to Global Investment Managers 2018, the annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. For some perspective, at year-end 2008, the aggregate AUM of the top 100 investment managers totaled €1.44 trillion. A total of 197 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of nearly €2.90 trillion. The top 10 largest investment managers accounted for €961.5 billion of AUM, which represents 33.2 percent of the total. This group of managers saw their AUM increase 11.2 percent from year-end 2016. The 2017 report, based on 2016 AUM figures, showed only three investment managers with assets of more than €80 billion. In this year’s rankings, six firms eclipsed the €80 billion mark.

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Global Investment Managers 2017 USD

The aggregate AUM of the top 100 largest investment managers increased 7.3 percent in 2016, totaling more than $2.8 trillion, according to Global Investment Managers 2017, an annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. A total of 199 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of slightly more than $3 trillion. The top 10 largest investment managers accounted for $1.038 trillion of AUM, which represents 34.5 percent of the total. This group of managers saw their AUM increase an average of 12.2 percent from 2015. Blackstone topped the rankings with more than $166 billion of AUM, followed by Brookfield Asset Management and PGIM, with $148 billion and $125 billion of AUM, respectively.

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Global Investment Managers 2017 Euros

The aggregate AUM of the top 100 largest investment managers increased 7.3 percent in 2016, totaling more than €2.7 trillion, according to Global Investment Managers 2017, an annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. A total of 199 real estate investment managers across the globe responded to the survey, representing an aggregate AUM of slightly more than €2.8 trillion. The top 10 largest investment managers accounted for €0.98 trillion of AUM, which represents 34.5 percent of the total. This group of managers saw their AUM increase an average of 12.2 percent from 2015. Blackstone topped the rankings with more than €158 billion of AUM, followed by Brookfield Asset Management and PGIM, with €140 billion and €119 billion of AUM, respectively.

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Global Investment Managers 2016 – Euros

2016 — A number of managers enjoyed double-digit growth in AUM during the past year, according to Global Investment Managers 2016, an annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. The industry’s top two largest investment managers, Brookfield Asset Management, with €137.1 billion in AUM as of year-end 2015, and The Blackstone Group, with €135.8 billion in AUM, recorded growth of 19 percent and 22 percent, respectively, based on figures reported in the prior year’s survey. The two behemoths continue to outpace others in the industry, as there is a growing and sizable gap between them and the other largest investment management firms. Blackstone has become a fundraising machine. In early 2015, the firm closed its Blackstone Real Estate Partners VIII, raising a record €14.5 billion of equity. Brookfield also made a large haul recently, closing its Brookfield Strategic Real Estate Partners II in April 2016 with €8.2 billion of equity. This year’s report captures data on 194 real estate investment managers around the globe. As a group, they control nearly €2.7 trillion of real estate assets. Also indicative of the jump in AUM, the top 10 largest managers, as a group, experienced a 12 percent increase from the previous year; the top 100 managers recorded a 14 percent increase.  

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Global Investment Managers 2016 – USD

2016 — A number of mangers enjoyed double-digit growth in AUM during the past year, according to Global Investment Managers 2016, an annual survey and report produced by Property Funds Research and Institutional Real Estate, Inc. The industry’s top two largest investment managers, Brookfield Asset Management, with $149.8 billion in AUM as of year-end 2015, and The Blackstone Group, with $147.6 billion in AUM, recorded growth of 19 percent and 22 percent, respectively, based on figures reported in the prior year’s survey. The two behemoths continue to outpace others in the industry, as there is a growing and sizable gap between them and the other largest investment management firms. Blackstone has become a fundraising machine. In early 2015, the firm closed its Blackstone Real Estate Partners VIII, raising a record $15.8 billion of equity. Brookfield also made a large haul recently, closing its Brookfield Strategic Real Estate Partners II in April 2016 with $9 billion of equity. This year’s report captures data on 194 real estate investment managers around the globe. As a group, they control nearly $2.8 trillion of real estate assets. Also indicative of the jump in AUM, the top 10 largest managers, as a group, experienced a 12 percent increase from the previous year; the top 100 managers recorded a 14 percent increase.

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Global Investment Managers 2015 – Euros Version

2015 — The Blackstone Group and Brookfield Asset Management continue their rivalry for the top spot among real estate investment managers. In the 2012 survey, Brookfield held the number 1 position. Last year, Blackstone moved ahead. And this year, Brookfield again moved into first place. The two behemoths both have approximately €100 billion under management with BAM increasing AUM by 16 percent, moving from €78.3 billion in 2013 to €103.8 billion in 2014; Blackstone saw a 12 percent increase in AUM, going from €78.5 billion in 2013 to €99.9 billion in 2014. The top 10 firms in the survey collectively manage €679 billion of assets, or 33 percent of the total. The top three firms in the rankings — BAM, Blackstone and CBRE Global Investors — account for nearly 14 percent of the AUM total. See the full report for the complete rankings of investment management firms based on AUM.

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Global Investment Managers 2015 – USD Version

2015 — The Blackstone Group and Brookfield Asset Management continue their rivalry for the top spot among real estate investment managers. In the 2012 survey, Brookfield held the number 1 position. Last year, Blackstone moved ahead. And this year, Brookfield again moved into first place. The two behemoths both have more than $120 billion under management with BAM increasing AUM by 16 percent, moving from $107.9 billion in 2013 to $125.6 billion in 2014; Blackstone saw a 12 percent increase in AUM, going from $108.2 billion in 2013 to $121.0 billion in 2014. The top 10 firms in the survey collectively manage $822.5 billion of assets, or 33 percent of the total. The top three firms in the rankings — BAM, Blackstone and CBRE Global Investors — account for nearly 14 percent of the AUM total. See the full report for the complete rankings of investment management firms based on AUM.

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U.S. Commercial Real Estate Outlook

2015 — The U.S. real estate market has posted solid returns the past few years. However, volatility is expected to return to the market, a signal for investors to examine their taste for risk and prepare for eventualities.

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Investing in real estate: the outlook for 2015 and beyond

2015 — Real estate on the rise. What do the property markets have in store for 2015 and beyond? The commercial property types regrouped on a solid ground in 2014 after climbing back from the pit of lost values, deflated pricing and stagnant transaction markets set off by the Great Recession. From multifamily's long-standing growth run to the office market's plodding gains in tenant demand and retail's bifurcated efforts to pursue changing consumer spending habits, the property types had all found sufficient footing by the end of the year to generate meaty investor returns.

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Global Investment Managers 2014 – Euros Version

2014 — The Blackstone Group climbed to the top of the rankings, claiming the number one spot as the world's largest real estate investment manager, with more than €78.5 billion of assets under management. In addition, the aggregate total assets under management for the largest 100 real estate investment management firms reached €1.55 trillion in 2013, up 10 percent from the 2012 figure of €1.41 trillion, according to Global Investment Managers 2014, a report based on an annual survey by Property Funds Research and Institutional Real Estate, Inc. See the full report for the complete rankings of investment management firms based on AUM.

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Global Investment Managers 2014 – USD Version

2014 — The Blackstone Group climbed to the top of the rankings, claiming the number one spot as the world's largest real estate investment manager, with more than $108.2 billion of assets under management. In addition, the aggregate total assets under management for the largest 100 real estate investment management firms reached $2.14 trillion in 2013, up 10 percent from the 2012 figure of $1.94 trillion, according to Global Investment Managers 2014, a report based on an annual survey by Property Funds Research and Institutional Real Estate, Inc. See the full report for the complete rankings of investment management firms based on AUM.

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Global Investment Managers 2013

2013 — This report was prepared by Property Funds Research and Institutional Real Estate, Inc. The top 20 investment managers in this year’s survey control 57 percent of the aggregate AUM reported by the 137 firms in the survey. The top 10 firms control 36 percent.

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Megatrends 2013

2013 — This article is taken from the March issue of The Institutional Real Estate Letter – Americas and identifies 7 powerful forces that are changing the future of real estate including the decline of defined benefit plans and shrinking office space.

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Europe – Opportunity Knocks

2013 — This report gives an overview of what is currently happening in the European property markets. It is a compilation of articles previously published in The Institutional Real Estate Estate Letter – Europe that have been pulled together to paint a picture of the opportunity that is out there and the risks surrounding it. The report also ends with a listing of European property transactions.

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Global Investment Managers 2012

2012 — This report was prepared by Property Funds Research and Institutional Real Estate, Inc. The top 20 investment managers in this year’s survey control 60 percent of the aggregate AUM reported by the 129 firms in the survey. The top 10 firms control 38 percent.

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Infrastructure Investor Survey

2012-2013 — The analysis includes the perspectives of global investors and consultants and will provide you a strong sense of these organizations’ priorities and expectations for infrastructure investment. The survey also will give guidance and clarity to investment managers, including data about investor preference for various products and terms, giving managers the ability to better meet investor appetites.

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The Case for Real Estate in an Institutional Portfolio

1997 — This paper seeks to offer a relatively complete examination of all the issues that pertain to the decision to include, or exclude,real estate as a component of institutional portfolios. This work is the culmination of an in-depth review of the historic and current studies, as evidenced by the six pages of references at the end of this paper. In presenting all the facts and pertinent studies we could uncover, we also offer opinions about how they should be viewed. In all of this, you will find that we work to avoid ‘boosterism’ of real estate, preferring instead to draw the more conservative conclusion from among the possible. In doing so, we believe we can draw a more balanced picture as to why real estate belongs in the world of fiduciary investing.  

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  • Research Reports
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Revisiting the Case for Listed Real Assets

Courtesy of bfinance

Four years ago, Listed Real Assets (LRA) boasted some of the strongest long-term risk-adjusted returns of any asset class. However, just as LRA was gaining industry recognition as a defined sector, it has endured two years of deeply troubled performance. Today, the picture is rather different. Will a difficult period dampen sentiment towards the sector? Or will investors see this, instead, as a time to ‘lean in’?

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IPM – February 2024

Courtesy of UBS Asset Management

This month, in our Insights into Private Markets (IPM), we bring you short updates into private credit, real estate and infrastructure. In our outlook into private credit, we explain why we have recently made opportunistic allocations to short duration homebuilder finance and reinsurance / Insurance Linked Strategies (ILS).

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Necessity Retail – The Battle-Tested Retail Niche

Courtesy of Lincoln

Following the Great Financial Crisis (GFC) of 2007-2008, “retail” became synonymous with “mall”. This misleading equation grew out of private capital’s shorthand for various shopping center formats, including neighborhood centers, power centers, lifestyle centers, single tenant retail, and yes, malls, among others. By lumping them together, they failed to differentiate retail into its component parts, which have proven historically to perform very differently. This paper focuses on the retail subsector with the strongest and most consistent track record—necessity retail.

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The Popular Housing Narrative Overstates the Mortgage Rate Lock-In Effect

Courtesy of Pretium

Despite the most substantial mortgage rate impact on homebuyers in the modern history of housing, US single-family home prices are up roughly 5% year-to-date through the third quarter. The surprising resilience of home prices has confounded housing observers and led most housing narratives to focus in on the mortgage rate lock-in effect as the root cause of rising home prices. However, structural supply-demand imbalance is the reason home prices are rising, not higher mortgage rates.

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Gateway Markets and Core Property Types: Not What They Used to Be

Courtesy of MetLife Investment Management

To our surprise, we found there has never been an authoritative methodology behind the commonly used real estate categorization of “gateway markets” or “core property types.” We believe both definitions should be based on high transparency and high stability of expected returns and outline our recommendation in this report.

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AI is Transforming the Data Center

Courtesy of Principal Asset Management

AI is transforming the data center, ushering in a new era in data center design and operation. The unique demands of AI workloads, from increased power consumption and cooling requirements to the need for continual learning and updating, require a reimagining of traditional data center architectures. This evolution presents an opportunity for innovation and growth in the data center industry. As AI continues to advance, it will be imperative for businesses and technology leaders to stay abreast of these changes and adapt their strategies accordingly.

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Real Estate Outlook 2024 – Ten Trends Shaping Real Estate Investor and Occupier Attitudes

Courtesy of Zurich

We focus on ten key trends shaping real estate investor and occupier attitudes over the coming year and beyond. The ten themes span geographies, ranging from the macro, like climate and capital markets, to more micro, such as how rising insurance premiums may impact returns. We zoom in on evolving real estate sector trends and explore the case for vertical farming. We also speculate on the role AI will have on the asset class and learn from a few recent high profile real estate company failures. We conclude with our preferred investment strategies and how these may tilt in 2024.

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Powered by Agility – 2024 Strategic Capital Outlook

Courtesy of CenterSquare Investment Management

The final publication in our 2024 outlook series explores Strategic Capital — a groundbreaking strategy positioned at the crossroads between multiple facets of traditional real estate investing. In this paper, we offer a fresh perspective, weighing the pros and cons of investing in singular assets versus dynamic platforms, and spotlight sectors like healthcare and data centers as key areas of opportunity. “Powered by Agility ” delves into the strategic advantages of consolidating fragmented markets and embracing the role of a liquidity provider, offering valuable insights and perspectives into what we’ve dubbed a white space within the real estate investment landscape.

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U.S. Real Estate Market Outlook – Lifting Fog

Courtesy of MetLife Investment Management

We believe private commercial real estate prices may be near or past the trough, following the October trough in the public REIT sector. We believe all property types will benefit from a moderating construction pipeline in the coming years, though office and some pockets of multifamily will work through vacancy challenges in 2024. Real estate cap rates / required returns are stabilizing (and possibly modestly declining), while real estate fundamentals are moderating. As such, the start of the next cycle could be less “V-shaped” than a traditional real estate recovery in our view.

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2024 United States Real Estate Market Outlook

Courtesy of ORG Portfolio Management

2023 was a year that surprised many investors as the potential economic recession that was seemingly imminent at the beginning of the year never materialized in a meaningful way. Economic conditions were favorable for many investment sectors with falling inflation, steady corporate earnings, low unemployment and high economic growth all being capped off by the United States Federal Reserve hinting at multiple interest rate decreases in 2024. For real estate investors, the year was not quite as positive with investment volume remaining at record lows and wide bid-ask spreads bringing current real estate valuations into question. In this article, ORG will provide a review of the real estate markets in 2023 and what investors should look forward to in 2024.

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Listed REITs 2024 Outlook

Courtesy of Principal Asset Management

We believe listed REITs are nearing an inflection point for a new cycle of outperformance. REIT valuations are attractive relative to equities and private real estate. In 2024, moderating interest rates should provide strong tailwinds for REIT stock prices.Property sectors with resilient, structurally-driven demand dominate REIT markets and offer compelling stock selection opportunities for investors. While there are risks to our outlook, we have conviction that public REITs are likely to outperform relative to equities and private real estate in 2024 and beyond.

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2024 Global Listed Infrastructure Outlook

Courtesy of Principal Asset Management

We believe global listed infrastructure (GLI) should continue to deliver comparable returns to global equities at meaningfully lower volatility for several reasons: 1) Today’s GLI valuations offer an attractive entry point relative to equities and unlisted infrastructure, 2)Decelerating growth and inflation that exceeds long-term averages have historically been positive for the relative performance of GLI, and 3) We expect the fundamentals of GLI businesses to remain solid in 2024. Our long-term outlook for global listed infrastructure remains constructive, as the fundamental growth drivers for these companies are poised to outlast today’s macro concerns.

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Capitalizing on a Resetting Real Estate Cycle – 2024 Private Equity Real Estate Outlook

Courtesy of CenterSquare Investment Management

As we continue our exploration of real estate dynamics in 2024, we shift this week to discuss the nuances of private equity real estate in the coming year. The fourth publication in our 2024 outlook series analyzes the dynamics between public and private markets, spotlighting the challenges incurred by private equity investors due to low transaction volumes and the reverberations of a rapid rise in interest rates. Despite these complexities, we remain confident that the year 2024 will present a strategic entry point for investors willing to act. “Capitalizing on a Resetting Real Estate Cycle” delves into the fundamentals driving success within sectors demonstrating asymmetric payoffs, providing valuable insights across residential, industrial and retail property types.

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IPM – January 2024

Courtesy of UBS Asset Management

In the first edition for 2024 of our monthly Insights into Private Markets (IPM), we bring you short updates into private equity, private credit, real estate and infrastructure. We believe that 2024 will be a better year for private equity exits, assuming the global economy is able to achieve a soft landing. Once interest rates have eventually fallen significantly and the market has fully re‑priced, we expect debt, once again, to enhance returns in Real Estate investing.

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It’s Morning for Listed Real Estate

Courtesy of CBRE Investment Management

We’re optimistic for the potential for listed real estate performance in 2024. After nearly two years of negative returns and a significant dislocation from private market values, the REIT asset class is well positioned for investors, in our view. With resilient fundamentals and strong balance sheets, REITs can have the opportunity to go on offense over this cycle and acquire assets in order to enhance cash flow growth. Within, we present our view on REIT fundamentals and the outlook for 2024.

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Keep Your Eyes on the Prize – Steady Improvement Expected for Multifamily Capital Markets in 2024

Courtesy of EMBREY & Rice Economics, LLC

The past 1 1⁄2 years have been difficult for the multifamily industry from a capital markets perspective. This is especially the case when making comparisons with the industry’s spectacular late 2020 to early 2022 period of record investment activity, low borrowing costs, and impressive asset appreciation. But keep your eyes on the prize. Multifamily’s capital markets environment — the universe of all debt and equity decisions, valuations, risk pricing, and investment strategies for existing and to-be-built assets — will improve considerably in 2024. Even stronger gains are expected in 2025. Multifamily’s capital markets revival combined with the sector’s long-term market strength based on robust demand will keep multifamily product in a favorable investment position over the long haul. This paper reviews the principal macroeconomic forces underlining multifamily’s recent capital markets dislocation, particularly Federal Reserve monetary policy and market interest rates. It examines the major capital markets challenges within the financing, investment, and asset pricing arenas. It provides views on how the principal drivers and components of multifamily capital markets are likely to trend in 2024 and 2025.

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Private Markets – Enhancing Your Portfolio

Courtesy of UBS Asset Management

As the European Long‑Term Investment Fund (ELTIF), ELTIF 2.0 regulation update for alternative investment funds comes into force this January, the opportunities for investing in private markets may be opening to a wider audience. Private markets investments can be a powerful tool in helping investors diversify and enhance the traditional 60:40 stocks and bonds portfolio. They can improve outcomes and slightly reduce the volatility of a portfolio.

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Around the World in Ten Trends – 2024 Global REIT Outlook

Courtesy of CenterSquare Investment Management

This piece examines ten pivotal themes that we anticipate will shape the global REIT market in the coming year, drawing insights from experts across the U.S., Europe, and Asia-Pacific regions. Throughout the report, a wide variety of topics, including potential tailwinds for REITs amid easing global rate hikes, the transformative impact of AI on data center demand, and forces influencing both the European senior housing and Chinese housing markets, are highlighted.

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Top 10 Questions – Real Estate Markets in 2024

Courtesy of UBS Asset Management

As markets can see disinflation and signs of interest rates at their peak, there may be light at the end of the tunnel and a path to improved market conditions for real estate in 2024. We think that our gloomy prediction that real estate capital values would bottom out in the second half of 2023 or later has occurred, and we expect capital values to bottom out in 2024. We look at 10 key questions for real estate in 2024, such as how artificial intelligence can be incorporated into real estate investing, government incentives for sustainability, an analysis of the bid-ask spreads across the different property types and assessment of whether the investment opportunities in favored sectors can match the available capital.

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2024 Real Estate Outlook – Threading the Eye of the Needle

Courtesy of Principal Asset Management

The global economy is finely balanced with the push of high interest rates colliding with the pull of strong labor markets. To skillfully navigate through this conflict—aka ‘thread the eye of the needle’—investors need to be able to identify and act upon available opportunities. The 2024 Real Estate Outlook provides an in-depth analysis of the broad real estate market and offers insight into our highest conviction strategies.

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2024 Looking Better Than Before

Courtesy of RCLCO Real Estate Consulting

RCLCO’s Sentiment Survey has tracked real estate market conditions in the U.S. for over 12 years. The events of the last four years have generated unprecedented volatility in the index – with significant swings in sentiment (both positive and negative) resulting from COVID-19 and the initial recovery; followed by inflation and rising interest rates. The RCLCO sentiment index has remained low throughout 2023 but the future outlook has become more encouraging as we approach the end of the year.

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The Foundations of Growth: Proptech in Saudi Arabia

Courtesy of The Proptech Connection

The adoption of the world’s leading technologies across the full asset lifecycle and every sector of the built environment, underpins much of the delivery of the giga-projects. From the mobility and accessibility of NEOM, to the further amplification of a vibrant tourism industry, via developments like the Red Sea projects, Saudi Arabia will be a global leader in demonstrating how tech can enrich how we use space. Whilst much of the technology is currently sourced from global partners, the significant investment in the relatively nascent Proptech sector is starting to reap dividends. Many technologies are starting to take shape and become key parts of the Saudi Arabian built environment.

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2024 Global Market Outlook: Past the Peak, But Not Downhill Yet

Courtesy of Nuveen

The Global Investment Committee members, including Bill Huffman, Head of Equities and Fixed Income, Saira Malik, Chief Investment Officer, Anders Persson, Chief Investment Officer of Global Fixed Income and Carly Tripp, Global Chief Investment Officer and Head of Investments for Nuveen Real Estate shared their views and outlook on various asset classes for 2024.

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ISA Outlook 2024 – Asia Pacific

Courtesy of LaSalle

The sheer size and complexity of the Asia Pacific region means real estate markets and investment opportunities are as diverse as the region itself. In this chapter of ISA Outlook 2024, we discuss this complexity and how China’s new economies – such as high-tech manufacturing and biotechnology – are growing rapidly and, after more than two decades, Japan is hoping to bid sayōnara to deflation. In other key parts of the region – Australia, Hong Kong, Singapore and South Korea – central banks are near the end of their rate-hiking campaigns in a bid to lower inflation which, as in the rest of the world, could lead to a rebound in transaction activity.

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The REIT Cap Rate Perspective, Q4 2023 – REITs on the Rise

Courtesy of CenterSquare Investment Management

Encouraging data indicating diminishing inflation, a moderating labor market, and a more restrained tone from the FOMC suggests the Federal Reserve might have concluded its interest rate hikes. As expected, this acted as a catalyst for REIT performance resulting in cap rate compression across the public markets since the 10-year yield peaked in October. If we are correct about the end of the Fed’s rate hike cycle, we anticipate REITs will maintain their recent upward momentum despite prevailing market uncertainties as we head into 2024. Examining cap rates in both the listed and private real estate markets, our Q4 2023 REIT Cap Rate Perspective Summary Report offers valuable insights into the trajectory of pricing across core and alternative sectors, presenting key data points to illuminate market dynamics.

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Green Premium – Study of New York and London Real Estate Finds Strong Evidence for a ‘Green Premium’

Courtesy of UBS Asset Management

Our research examines 1,453 office building transactions in New York and London between 2010 and 2022, running a regression to analyze the economic implications of environmentally certified commercial real estate while testing for a wide range of factors and we have found evidence of a ‘green premium’. In certain situations, returns will be sacrificed if the asset manager/property owner does not account for the environmental impact that a building has.

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ISA Outlook 2024 – North America

Courtesy of LaSalle

Against a volatile macroeconomic backdrop and with growth expected to slow, we believe that in 2024 it will be the trajectory of interest rates that will have the greatest impact on real estate values in the US and Canada. As investors continue to adapt to cooler conditions, this chapter of ISA Outlook 2024 examines the current landscape and looks ahead to the coming year, including where we see select opportunities emerging, as well as variation between the two markets. We conclude with three broad strategic themes and recommended strategies where investors may consider deploying their capital.

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Revisiting Retail

Courtesy of CenterSquare Investment Management

“Revisiting Retail,” challenges conventional notions pertaining to retail real estate and explores the sector’s evolution. The piece debunks past predictions regarding the decline of brick-and-mortar shopping centers in the face of e-commerce and highlights shifts in consumer patterns that have given way to an omnichannel retail experience. Furthermore, it underscores the resilience and adaptability of the Essential Service Retail (ESR) subsector, positioning it as a compelling investment opportunity amidst market volatility and rising debt costs, while anticipating a continued golden era for retail real estate.

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Swiss Real Estate Insights – Attractive Despite Changes in Conditions

Courtesy of UBS Asset Management

Investors who compare less liquid real estate investments with high‑quality government bonds will have noticed that spreads are low in historical comparison. In our latest Swiss insights into real estate, we’ll explain to you why real estate investments nevertheless remain attractive, in addition to describing the options that are available for investing in real estate.

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Outlook 2024 – After the Rate Reset: Investing Reconfigured

Courtesy of J.P. Morgan Private Bank

There haven’t been this many attractive investment choices to consider in more than a decade. But how do you personalize the possibilities with a strategy that optimizes your specific financial needs and goals? We think the key to harness the dynamics of a new rate world is to understand—and further explore— five important considerations.

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ISA Outlook 2024 – Europe

Courtesy of LaSalle

European property markets have been waiting for a peak in European Central Bank and Bank of England policy rates, for an end to the war in Ukraine and for bid-ask pricing spreads to resolve. Investors ready to move out of waiting mode in 2024 can benefit from rebased prices, opportunities to solve capital stack equations, and strong fundamentals in many sectors. In this chapter of ISA Outlook 2024, we examine the state of the European market and conclude with recommendations for specific investment strategies – underpinned by realism and targeted toward areas of forecast resilient income growth.

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ISA Outlook 2024 – Global

Courtesy of LaSalle

The global macroeconomic context for real estate remains unsettled, and more so than earlier in 2023. Until late summer, interest rates in most major markets exhibited high volatility, but little overall trend. They moved mainly sideways, owing to cooling inflation and expectations that central banks were reaching the end of their tightening cycles. This was helpful in setting a pricing baseline for real estate investors. But the outlook for rates and thus real estate pricing has become more unsettled of late. What does this mean for real estate and how does it intersect with other key trends?

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2024 Infrastructure Outlook Answering Five Tough Questions From Infra-Skeptics

Courtesy of UBS Asset Management

The evolution and development of private infrastructure investing has never been a straight line, and looking into 2024, we see silver linings for the asset class. Private infrastructure had a challenging 2023. Although performance remained relatively stable, fundraising is at the weakest levels in 10 years. High interest rates, mixed economic growth, and geopolitical tensions continue to weigh on the industry. But with most of 2023 behind us, we now wonder whether markets have actually become too bearish. Infra‑skeptics often express disbelief around infrastructure’s current valuations and performance and suggest that it is best to remain on the sidelines before the eventual correction. In our Infrastructure Outlook 2024, in addition to our macro and market update, we address five tough questions that investors are asking.

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2024 European Outlook – Repricing Triggers Revival

Courtesy of AEW

As of November 2023, the global focus has shifted firmly to the war in Gaza. A potential further expansion of the conflict to the wider Middle East region,  which has some of the world's largest oil producers, might increase the risk of higher energy prices and a return of elevated inflation. Even as the Ukrainian war has continued, a Europe-wide recession has been avoided and inflation has continued to come down. With elevated interest rates, the economic outlook has remained gloomy. Bond and stock markets had priced amidst a pause in rate hikes. But fears of further hikes have increased due to the potential expansion of the conflict in the Middle East. In times of heightened uncertainty, scenarios can be a useful tool. In our base case scenario, we assume that inflation, bond yields and real estate borrowing costs will come down. The high speed and signification extent of downward valuations already absorbed during 2022-23 triggers the key question for our 2024 European Outlook as "Which markets have sufficiently repriced and will recover first in the upcoming cycle?"

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Global Real Estate Outlook 2024: Negotiating Higher Rates and Other New Paradigms

Courtesy of M&G Investments

With increasing talk of ‘higher for longer’ interest rates, global real estate markets are adapting to new paradigms. Property yields have risen, but not to the same degree as rates, prompting some to suggest further repricing is needed in order to restore spreads. But is real estate dependent on a wide spread over bonds to deliver performance, or can other return drivers compensate?

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Japan Insights, Real Estate Markets: A Watershed Year in the Making

Courtesy of UBS Asset Management

Japan is at the critical juncture of breaking out from its three decades of stagnation. Nominal growth is returning. The outlook is not set in stone but the current wage-price dynamics look promising and supportive. We expect any policy adjustments during this transition period to be slow and steady. We seek to position in real estate sectors that can ride this new wave of growth.

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Europe – 2024 Real Estate Outlook

Courtesy of PGIM Real Estate

The sharp repricing of European real estate assets continues as interest rates remain elevated and liquidity low. Overshooting is increasingly looking likely. There are positive trends supporting occupier markets, but downside risks dominate going into 2024.

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Asia Pacific – 2024 Real Estate Outlook

Courtesy of PGIM Real Estate

The Asia Pacific real estate market outlook is stabilizing, with the prospects of recovery starting in 2024. However, leasing fundamentals and capital market conditions will remain highly diverse across the region.

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European Sale-Leaseback: An Attractive Investment Opportunity in Today’s Uncertain Market

Courtesy of Clarion Partners

The European sale-leaseback (“SLB”) market continues to benefit from multiple tailwinds. In our recently published research, we discussed these drivers and, more broadly, the appeal of SLB strategies in Europe at this point in the economic/property cycle. Since then, we believe that the SLB opportunity in Europe has become even more compelling. In this piece, we discuss the reasons why, review the investment attributes of SLBs, and outline some of the “best-practices” for risk mitigation in SLB underwriting.

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Real Estate Outlook – Global, Edition November 2023

Courtesy of UBS Asset Management

Initial estimates from statistical agencies painted a mixed picture of economic activity in 3Q23. US growth accelerated to a blistering 4.9% Quarter on Quarter (QoQ) annualized while, after a lull in 2Q23, the Chinese economy picked up to show growth of 1.4% QoQ. However, China remains mired by a housing market downturn, house developer defaults and weak consumer confidence. The eurozone economy was lackluster and shrank 0.1% QoQ, having grown 0.2% QoQ in 2Q23. Ireland, which propped up the eurozone in 2Q23, was a significant drag in 3Q23 as its volatile economy shrank by 1.8% QoQ. A key question is the US’s ability to remain resilient and defy recession. The US jobs market finally showed some signs of softening in October as employment growth slowed to 150,000 jobs Month-on-Month (MoM). Given the very strong economy in 3Q23, a decline in GDP in 4Q23 looks increasingly unlikely. However, we do expect a slowdown of some sort in the first half of 2024 as the very rapid rise in interest rates over the past 18 months continues to feed through. Moreover, a slowdown is likely needed to keep a lid on inflation and stop it from rising again. The narrative on interest rates has shifted to higher- for-longer, particularly for the US, and the 10-year Treasury bond yield touched 5% briefly in October.

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Insights into Private Markets (IPM) – November 2023

Courtesy of UBS Asset Management

In this semi‑annual November edition of Insights into Private Markets (IPM), we’ve explored the latest investment positioning across real estate by region, infrastructure, private equity and private credit and how these private markets asset classes are adjusting to the challenges of the current macroeconomic environment. In the geopolitical and macroeconomic uncertainty of 2023, the probability of ‘higher‑for‑longer’ interest rates persists and the ensuing impact on private markets remains a key investment theme. We provide you with our sector performance outlooks. Opportunities are emerging in debt, as well as an attractive market in private equity secondaries. This edition explores how deglobalization in infrastructure is an underappreciated investment tailwind, the impact of sustainability on a ‘green premium’ for buildings as well as the issue of food security.

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Property Assessed Clean Energy Loans: An Alternative Financing Solution in a Tight Lending Environment

Courtesy of ORG Portfolio Management

Since the United States Federal Reserve began its monetary policy tightening cycle in March 2022, the benchmark interest rate increased from 0%-0.25% to 5.25%-5.50%. This increase in financing costs has sent reverberations throughout the ecosystem of commercial real estate by decreasing the availability of financing from commercial banks and slowing real estate transaction volumes and construction activity. As a result, many real estate developers have been stuck in an unfortunate circumstance where capital market conditions have restricted the viability of new construction and asset repositioning. In order to finance construction opportunities in real estate, a growing number of investors and developers are beginning to look to Property Assessed Clean Energy (“PACE”) loans in the absence of affordable financing in the market. In this article, ORG will briefly address what PACE loans are, how to qualify for and secure PACE financing and how PACE financing can improve capital structures for investors looking to complete real estate investments that have experienced issues with rising financing costs.

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European Real Estate: Frightening Tightening?

Courtesy of Barings

While further capital declines are still occurring, we are now technically past the trough of the European property cycle. The Barings Real Estate team discusses how this is shaping both opportunities and challenges in the asset class.

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The Decisive Eye – Autumn 2023

Courtesy of Principal Asset Management

In recent years, a growing number of students have been desperate to find suitable and affordable accommodation. Estimates show that the shortfall of student beds across the U.K.’s top 18 university towns and cities has risen to 240,0001, an unprecedented level amounting to a crisis in housing.

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U.S. Real Estate Sector Report – Fall 2023

Courtesy of Principal Asset Management

Evaluate real estate investment opportunities on the horizon in the U.S. markets with our bi-annual sector report. Featuring cross-quadrant perspectives from our real estate investment professionals, each report provides current conditions and outlooks for core real estate sectors as well as non-traditional sectors such as data centers.

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Europe Real Estate Sector Report – Fall 2023

Courtesy of Principal Asset Management

Evaluate real estate investment opportunities on the horizon in the European markets with our bi-annual sector report. Featuring cross-quadrant perspectives from our real estate investment professionals, each report provides current conditions and outlooks for core real estate sectors as well as non-traditional sectors such as data centres.

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REIT on the Money – Critical Facts About Today’s Listed Real Estate Market

Courtesy of CenterSquare Investment Management

The Science Based Target Initiative (SBTi), a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF), has evolved to become the pre-eminent organization supporting companies setting emissions reduction and net zero targets in alignment with the 2015 Paris Agreement. We assessed the performance of REITs relative to the global index one year following the date their targets were approved and published.

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Data Centers: Commercial Real Estate’s Digital Frontier

Courtesy of CenterSquare Investment Management

Real estate represents the built environment where we live, work, and play, and the data center sector has the unique distinction of impacting our universal activities. Over the last decade, the proliferation of technology has not only fundamentally changed the way we utilize data centers but has also elevated the criticality of these properties to new heights. In this brief, we examine the backdrop of the rise of the data center sector and share our predictions for a promising future.

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Navigating Multifamily Short-Term Headwinds with a Long-Term Perspective

Courtesy of Aegon Asset Management.

In today’s uncertain US commercial real estate (CRE) market, multifamily stands out as a resilient asset class. While we observe short-term trends such as decelerating rent growth, increasing expenses, and lower transaction volumes, it is important to consider them within the context of structural housing-market challenges, including an overall shortage of housing and increasing barriers to ownership. In light of this, we view long-term debt as a compelling option to access the multifamily asset class.

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Future Green Investments – Emerging Energy Transition Infrastructure Beyond Renewables

Courtesy of UBS Asset Management

With the rising maturity of renewables, returns of traditional projects such as wind and solar have compressed significantly, typically offering single digit Internal Rate of Returns (IRR). Investors that are looking for higher returns, especially in this rate environment, are keen to explore other technologies. The natural question for energy transition investors is – what’s next? Read our new research insight.

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Fall 2023 Real Estate Outlook – Is This What a Soft Landing Looks Like?

Courtesy of MetLife Investment Management

The path to an economic soft landing has widened. The most important update in real estate capital market conditions over the past few months is early signals that transaction activity is thawing. We believe capital markets disruption has created opportunities for higher-yielding real estate debt and preferred equity. Fundamentals generally remain healthy outside the office sector, which could see vacancies rise further next year.

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The Benefits of Diversity – APAC’s Role in Investment Portfolio Growth

Courtesy of Capitaland Investment

This educational piece examines how global investors can augment their portfolio values by investing in Asia Pacific real estate to achieve the benefits of geographical and asset class diversification as well as enhance their risk-adjusted returns. It focuses especially on the nuances specific to pairwise correlations, both inter-regionally and intra-regionally.

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IPM – September 2023

Courtesy of UBS Asset Management

We’re pleased to present to you our September edition of the IPM Monthly Blog, with bite sized insights into real estate, infrastructure and a deeper dive into private credit.

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Investment Outlook: Opportunistic Patience Prevails

Courtesy of Hines

As the data from the first half of 2023 continues to be posted, we offer our interpretation of the findings within the context of real estate investing. This report dives into four macro factors that are impacting the sector and shaping how we build, buy, and operate real estate— both now and over the longer term. It also provides an update on the more immediate signals we are watching to indicate when we should pivot from a patient, defensive stance to a more aggressive, opportunistic, and offensive one. Lastly, it contains regional overviews that describe the current real estate markets in Asia, Europe, and the Americas

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Opportunities in Listed REITs Today

Courtesy of Principal Asset Management

Listed REITs have faced headwinds the past 18 months, with stickier-than-anticipated inflation requiring continued hawkish bank rhetoric, increasing upward pressure on bond yields and negative pressure on real estate values and REIT stock prices. The prospect of a banking crisis driven credit crunch has added to the pressure on the capital-intensive real estate sector. Amidst the bearish sentiment towards real estate a compelling opportunity to own REITs has emerged. The deeply discounted REIT market has largely priced in the challenges for real estate of higher rates and tighter credit markets.

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Inside Real Estate Outlook – Waiting for Godot

Courtesy of Principal Asset Management

In Samuel Beckett’s play “Waiting for Godot”, two characters engage in an endless discussion while awaiting the titular Godot who never arrives. A similar parallel appears to beset global investors waiting for central bankers to signal the end of monetary tightening. Several false dawns later, it seems that the period of waiting may be in sight with inflation subsiding allowing central bankers to bring an end to monetary policy tightening. Godot, it appears may arrive in 2024. The prolonged period of elevated inflation and borrowing costs has not been without cost however. While major economies have avoided recession, households savings are eroding and businesses are beginning to lose some pricing power setting in place conditions for a mild recession or slower growth. Amid this backdrop, in this edition of Inside Real Estate, we discuss our strategic framework and high-conviction ideas that we believe may help to drive and protect investors’ portfolios and prepare for the next cycle. Identifying the most attractive position in the capital stack and overweighting structurally resilient property types are the two building blocks of our strategy that we are pleased to present in this report.

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Catalyst for Change – Commercial Real Estate Private Credit in Asia Pacific

COURTESY OF CAPITALAND INVESTMENT

Private credit in commercial real estate has become an essential component of an investment portfolio for diversification and enhanced risk-adjusted returns in today’s prevailing economic environment. Exacerbated by tighter liquidity and elevated interest rates, traditional lending institutions have become cautious in an increasingly restrictive regulatory environment. Private credit has filled this void by offering creative capital solutions to businesses and individuals. Its potentially higher yields, downside protection, and reduced susceptibility to market volatility make it an attractive asset class.

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Asia Pacific Market Perspective – Q2 2023

Courtesy of AEW Capital Management

A repricing seems to be on the horizon for the Asia Pacific commercial property markets. Which markets might recalibrate and offer attractive opportunities? Dive in AEW’s latest Asia Pacific Research Perspective to learn about potential market shifts and uncover opportunities.

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U.S. Economic & Property Market Perspective – Q2 2023

Courtesy of AEW Capital Management

It appears the Fed may be approaching the end of their tightening cycle and the probability of a “soft landing” has increased.  That said, there are still numerous economic indicators that suggest the risk of recession remains elevated. Read AEW’s U.S. Research Perspective for more insights.

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Real Estate Debt: Highest Yields in Decades

Courtesy of MetLife Investment Management

Guy Haselmann, Head of Thought Leadership at MetLife Investment Management (MIM), recently sat down with William Pattison, Head of Real Estate Research & Strategy at MIM to discuss opportunities within the real estate sector, including why he believes strong opportunities currently exist with high-yield commercial mortgage investments.

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Real Estate: Evaluating the Office Landscape

Courtesy of Meketa Investment Group

The COVID-19 pandemic drastically shifted the way in which many businesses operate and view remote work schedules. Many companies that used to require employees to be in the office five days a week have adopted some variation of hybrid work, meaning some days in the office and some days working remotely. Three years after the start of the pandemic, it appears that a hybrid working environment is becoming the new norm for many employers. As part of the shift to hybrid work schedules, many companies are reevaluating their current office space needs. Perhaps unsurprisingly, many have begun or are planning to downsize their office footprint over the next few years. This means that office, one of the four main property types found in institutional real estate portfolios, is likely to experience a significant structural change. This may translate into a decline in future office construction projects, reductions in overall office utilization, as well as redevelopments and conversions of office spaces into other property types.

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IPM – August 2023

Courtesy of UBS Asset Management

To complement our flagship publication, Insights into Private Markets (IPM), we’re pleased to present to you our August edition of the IPM Monthly Blog. In keeping with IPM, the IPM Monthly Blog provides you with the latest insights and developments in the private markets space but in monthly bite‑sized amounts. This month we’re giving you insights into draft proposals for banking regulations released in the USA, as well as short outlooks into real estate, private equity and infrastructure.

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Build-For-Rent Housing: A Solution to Balance Housing Supply

Courtesy of ORG Portfolio Management

Throughout 2022 and 2023, many economists believed that increases in interest rates from the United States Federal Reserve would help to slow the rate of home price appreciation and improve housing affordability. This was because increasing mortgage rates could decrease homebuyers’ appetite at current prices and subsequently keep home prices affordable over the long term. Surprisingly, this slowdown in home price appreciation did not occur because in 1Q 2023, the median sale price of a United States home skyrocketed 32.8% to $436,800 from $329,000 in 1Q 2020. From 1Q 2022 to 1Q 2023, the median home price continued to increase by 0.9%. To date, high mortgage rates have substantially increased housing costs. Home prices remaining high combined with the rapid increase in mortgage rates have led to some of the worst housing affordability conditions in United States history. Increasing the overall supply of housing in the United States should be one the best ways to remedy the housing affordability crisis. ORG believes that Build-For-Rent housing (“BFR”), a subsector of Single-Family Rentals (“SFR”), is a viable strategy for improving overall housing affordability and quality in the United States while allowing investors to optimize their residential real estate portfolios.

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Data Centers: Will Big Advancements in Technology—Like Artificial Intelligence— Render Existing Data Centers Obsolete?

Courtesy of Principal Asset Management

There’s a chip war going on. Semiconductor manufacturers continue to release increasingly powerful processors designed to manage new types of workloads, including artificial intelligence (AI) and machine learning (ML). Frequent headlines about this ‘semiconductor arms race’ have understandably made some investors concerned about whether the facilities supporting these servers—data centers— will become obsolete.

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The Role of Public-Private Partnerships in Infrastructure

Courtesy of Harrison Street

The need for infrastructure spending in the United States has been well documented and observable for some time. In its most recent assessment of the country’s infrastructure, the American Society of Civil Engineers graded the country’s infrastructure with a C-, which was actually an increase from its prior score of D+ and the highest rating in 20 years. Infrastructure needs across America span the spectrum of real asset types and ambitions – ranging from schools to energy and from safety-driven deferred maintenance to carbon reducing innovations – and together they constitute a comprehensive call to action. In seeking to address these deficits, universities and government agencies have been increasingly turning to public-private partnerships (P3s) as vehicles to align the interest of public entities and private capital.

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Technology: A Driving Force for ESG in Real Estate and Infrastructure

Courtesy of Deloitte and Taronga Ventures

Tenants, residents, investors, and regulators are all knocking on the door of real estate and infrastructure actors, demanding green, affordable, and equitable solutions. Heightened social inequality and wellness issues, combined with more frequent and severe extreme weather events, are aggravating the need for Environment, Social and Governance (ESG) risks and opportunities to be addressed. Improving ESG performance is a way for astute real estate and infrastructure organizations to differentiate from their competitors. This is especially true when many are not responding quickly and strategically to ESG risks and opportunities.

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Follow the Containers: U.S. Consumption Markets 2Q 2023

Courtesy of Tishman Speyer

The accelerated transformation of U.S. trade and production over the past two decades is especially evident in select global consumption markets near major ports. These port-accessible markets have emerged as some of the strongest industrial markets in the nation.

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Core Real Estate is out of “Alternatives”

Courtesy of Harrison Street

When viewing sectors, the traditional property types – the office, industrial, retail and apartment sectors – have faced new challenges. Sector allocation is increasingly important for commercial real estate investors, which begs the question – should core real estate investors contemplate more diversification into the alternative sectors?

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Behind the Gate: The Anatomy of a Data Center

Courtesy of Principal Asset Management

Society relies on digital applications for work, education, transportation, entertainment, healthcare, and just about every other aspect of our modern lives. Through these digital applications, we create and consume massive amounts of data (three times as much in 2022 than just four years earlier). All that data—even data ‘in the cloud’—is processed and stored inside a data center. Indeed, data centers are the cornerstones of our digital world. And yet few people have ever been inside one. Most data centers don’t have signs advertising them. You might drive by one on your daily commute and not even know it. You can’t walk up to the lobby and ask for a look around. But in this short paper, we’ll give you a peek inside.

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Greening the Grid: A Tipping Point in U.S. Renewable Energy Production

Courtesy of MetLife Investment Management

While demand for renewable energy is on the rise, and the grid continues to “green,” procurement, transmission and accounting of renewable resources is expected to evolve. How does this transition relate to institutional real estate and asset management strategies? Greening grids have far more implications for asset management than one may think, and understanding the composition of the U.S. electricity supply has the potential to directly influence the types of decarbonization or net-zero strategies adopted by investors. By navigating the evolving challenges and opportunities of a greening grid, investors and asset managers are better positioned to align sustainability goals with long-term investment interests, while building asset-level resilience and mitigating undue risk.

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The Case for Private U.S. Commercial Real Estate

Courtesy of Principal Asset Management

While the global investment landscape may call for a more cautious risk-off approach over the next year, given higher than average inflation, elevated policy and borrowing rates, and increased risk of recession, asset classes that dampen volatility, reduce correlation to global markets, and generate income, remain at the forefront for prudent investors. At its core, U.S. commercial real estate remains an asset class that benefits from positive economic and demographic fundamentals. Although the near-term macroeconomic outlook remains uncertain, regional diversity within the U.S. economy—across metro areas offers investors a diversification hedge to investors not available in most asset classes. Additionally, with the increased stability of its income return, U.S. commercial real estate provides risk-adjusted returns allowing investors to take advantage of potentially increased returns and the reduced risk of a well-diversified portfolio.

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Navigating the Juxtaposition – Challenges and Opportunities in Today’s Real Estate Market

Courtesy of Hamilton Lane

The current market juxtaposition – with low vacancies and double-digit rent growth in certain sectors versus market volatility and reduced liquidity – creates a few challenges when it comes to determining the value of a real estate property in today’s rapidly shifting environment. In terms of property valuations, today’s market is feeling a bit like the gameshow, “The Price is Right.” With price discovery happening in real time, we are all determining our own estimates for what we think is “fair market value.”

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Wide-Ranging Opportunities – What You Need to Know About Real Estate Investing

Courtesy of UBS Asset Management

Real estate can offer investors an abundance of benefits and entry points. In this insightful compendium, UBS Asset Management unveils the real estate universe and important considerations for investors approaching this asset class. They also cover how the asset class is adjusting to the new interest rate environment, how it can benefit from technology and the value of including sustainability amongst other key themes.

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Mid-Year 2023 Economic and Markets Outlook

Courtesy of Bluerock

Is the U.S. headed for a recession? Will the inflation rate continue to decline? What is the outlook for institutional real estate pricing? Which asset classes and real estate sectors are likely to outperform? Find out more in the Bluerock Mid-Year 2023 Outlook.

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Global Macro Outlook | Q3 2023 — The Long and Winding Road

Courtesy of Manulife Investment Management

Key takeaways from this report include: 1) Recession postponed, not canceled, 2) inflation is still too sticky at uncomfortable levels, 3) we believe central bank policy easing will be more gradual than consensus expectations, and 4) shifting geopolitics and the need for a new markets playbook. Read the full outlook for more information and insights.

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Infrastructure Investing – The Myths and Realities, What You Need to Know About Infrastructure

Courtesy of UBS Asset Management

Private infrastructure has over a trillion dollars of assets under management. This asset class now covers a broad range of businesses such as energy, transportation, digital and social infrastructure. It has also gained the reputation of being a stable safe haven especially during the market turmoil in recent years. However, investors are grappling with rapidly changing dynamics around issues such as environment, politics, technology and competition. This paper serves as a compendium for both veterans and newcomers of the industry and explores the ins and outs of the infrastructure asset class beyond just the typical catchphrases and buzzwords.

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Opportune Timing – Interview with Paul Guest on Unlocking Real Estate Opportunities

Courtesy of UBS Asset Management

With the market correction unlocking attractive possibilities, unlisted real estate – an asset class offering stable returns and good protection against inflation – can witness a unique growth opportunity in 2023 and 2024. In this top 10 interview with Paul Guest, Senior Portfolio Manager, we’ll uncover insights into what makes the current investment environment unique, including trends within the real estate sector, the importance of sustainability within private markets, and benefits investors can find within this space.

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Building Momentum – Interview with Roland Hantke on Unlocking Infrastructure Opportunities

Courtesy of UBS Asset Management

Private infrastructure investments are increasingly gaining traction – and for many reasons. Considered a safe haven especially during inflation, infrastructure is receptive to many secular trends currently shaping the global economic scenario. What are these, and how should investors approach this multi-faceted asset class? Roland Hantke, Head of Multi-Managers Infrastructure (MMINFRA) explains how to unlock opportunities in this resilient asset class, and how MMINFRA is well positioned to add value to investors’ portfolios.

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Identifying Resilient Retail Segments for US Commercial Mortgage Lending

Courtesy of Aegon Asset Management

The retail sector has received a lot of attention in recent years given the Covid-19 pandemic, decline of the regional mall, wary shoppers, and subsequent government mandated restrictions, leading some to doubt the need for physical retail establishments in the future. Predictably, e-commerce sales spiked in 2020, but as pandemic restrictions have receded, e-commerce as a percentage of total sales has stabilized in line with the prior trend

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Credit Crisis? Why This Time May Be Different for REITs

Courtesy of Principal Asset Management

“Credit crisis” and “banking stress” are dominating headlines and creating uncertainty for capital markets. Real estate is a capital-intensive industry and depends on well-functioning capital markets to thrive. We believe recent events will likely result in tighter lending standards and translate into lower credit availability and wider credit spreads for real estate broadly. While this is an unwelcomed event and investors likely recall memories of a tough credit crisis for REITs in 2008, we believe this time may be different and the large underperformance of REIT stocks due to credit market concerns is likely overdone.

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Real Estate Outlook, June 2023: Real Estate Reckoning

Courtesy of PIMCO

Our long-term outlook for commercial real estate investing argues for a flexible, long-term approach to seize opportunities in debt and equity investments across the real estate landscape. We see the best opportunities in originating new loans and purchasing existing loans, adopting a broad approach to debt and targeting stressed assets in turbulent markets. In our view, investors should take advantage of opportunities in private credit and special situations emerging from market volatility. We see opportunities with concentrated investments in promising sectors like residential, logistics, and data centers across the U.S., Europe, and Asia-Pacific, adapting to regional trends for maximum success.

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RCLCO Real Estate Sentiment Increases Slightly, Risk of an Impending Recession Remains

Courtesy of RCLCO Real Estate Consulting

RCLCO’s Sentiment Survey has tracked real estate market conditions in the U.S. for over 10 years. Events of the last three years have generated unprecedented volatility in the index – with significant swings in sentiment (both positive and negative) with COVID-19 and the initial recovery, followed by inflation and rising interest rates. The RCLCO current sentiment index had dropped to a new low of 8.3 at Year End 2022, and has recovered somewhat to 19.0 at Mid-Year 2023, yet still remaining in the recessionary zone.

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The Future of the Global Electric Vehicle Industry

Courtesy of Slate Asset Management

The world is facing a climate crisis and decarbonizing our transportation systems will be vital to reducing global greenhouse gas emissions. The adoption of electric vehicles is accelerating around the globe, and will require vast investment to build out the infrastructure required to support the transition away from gas engines. In this white paper, we will examine the current status of the industry, how government policies are driving increased adoption of EVs around the world, the scale of investment in charging infrastructure that will be required, and how certain companies are positioned to capitalize on opportunities in this space. For the purposes of this white paper, “electric vehicle” includes battery electric vehicles and plug-in hybrid electric vehicles.

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China Pensions Reform

Courtesy of KPMG

Major reforms to the Chinese Mainland’s pensions system are creating new opportunities for asset managers. This report, jointly authored by KPMG China and ASIFMA, explores the background to China’s evolving three-pillar pensions system and the demographic factors that necessitated the current reforms, and shares insights from market players on the challenges as well as the opportunities. Pillars 2 and 3 of the pensions assets industry in China could grow to as much as 15-21 trillion RMB by 2030 under the current and potential reforms. The report takes an in-depth look at the three pillars of the pensions framework and considers how firms can play a role in serving this growing market in different areas across basic pensions, enterprise and occupational annuities, and individual pensions.

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Borrowing Your Cake and Eating It Too: Adverse Selection in CRE Debt Prepayment Options

Courtesy of Principal Asset Management

The Federal Reserve’s (Fed) recent rate hikes have created significant headwinds for the commercial real estate (CRE) industry. Transaction activity has plummeted from the highs of 2021 and early 2022, office property loan defaults are on the rise, and there’s a looming wall of mortgage and rate-cap maturities on the horizon. Despite a backdrop of distress, there are still attractive opportunities for new CRE investments, particularly in private debt. Relative values for private debt remain strong, new loan underwriting standards appear robust, and hard assets underpin credit risk. Private CRE debt historically served as a defensive investment strategy relative to equity, which makes it appealing in times of dislocation and distress. However, private CRE debt investing has its own unique risks. This paper highlights an emergent trend within the private CRE debt marketplace: an increase in demand from borrowers for fixed-rate loans with softer prepayment provisions.

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Still Keeping It Simple, Mid-Year Update 2023

Courtesy of KKR

Amidst the supply-side-driven regime change that we believe has unfolded across the global macroeconomic landscape, we continue to advocate for ‘Keeping It Simple’ in today’s market. Key to our thinking is that an investor can now earn strong risk-adjusted returns without the need to stretch in terms of either capital structure or counterparty risk. Consistent with this view, we believe investors can create some really attractive vintages in both the private and public markets by doing the little things well, including maintaining linear deployment, ensuring diversification through sound portfolio construction, and hedging currencies and interest rates where appropriate. In terms of what this backdrop means for investing, in our view, now is a really compelling time to be a lender on a global basis. This vintage should not be missed. We also continue to pound the table on the benefits of collateral-based cash flows in portfolios, particularly Infrastructure, Asset-Based Finance, and certain Real Estate projects that are directly linked to positive nominal GDP growth. Finally, within both Private and Public Equities, we remain thematic in our approach and steadfast in our desire to focus on high free cash flow conversion stories, especially corporate carve-outs and public-to-private transactions.

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Finding Opportunity in Volatility within Asia Pacific, Reprioritising Fundamentals in Challenging Times

Courtesy of CapitaLand Investment Limited

The global outlook for the year ahead is expected to be marred by a slowdown in GDP growth, a continued rise in interest rates and a more targeted approach by many governments in fiscal support measures. As we narrow our focus to the Asia-Pacific (APAC) region, the outlook is brighter. 2023 has so far been an encouraging year, and we expect that the region’s investors will benefit from the developments that have unfolded so far, in the months and years to come. This report looks at the APAC real estate investment landscape and how it has fared and will play out amid the current macroeconomic backdrop. We have considered multiple drivers including post-COVID-19 dynamics, evolving demographics and market fundamentals with the aim of pin-pointing opportunities that underscore the resilience and resourcefulness of this market in challenging times.

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U.S. Research Perspective – Q1_2023

Courtesy of AEW

Fed stays the course with fastest basis point increase in interest rates in 40 years. The rapid increase in rates has yielded a dramatic shutdown in commercial real estate lending. Read this latest research perspective for more insights.

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Real Estate Outlook – Global, Edition May 2023

Courtesy of UBS Asset Management

Economies fared well in the first quarter of the year and performed better than expected. China benefited from COVID-19 restrictions being lifted and bounced back strongly, to record growth of 4.5% YoY. Initial data showed the eurozone returned to modest expansion, of 0.1% QoQ, having stagnated in 4Q22, while the US slowed to growth of 1.1% QoQ at an annualized pace. Most of the advanced economies are expected to experience some decline in output during the downturn, which started in mid-22. The US economy is on a slightly different cycle and is expected to slip into recession in the second half of the year. By this time, Europe and Japan are forecast to be in recovery mode.

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The Power of Innovation – From Niche to Norm

Courtesy of UBS Asset Management

This exclusive interview with Joe Azelby, Head of Real Estate & Private Markets, takes you through the current climate and the challenges and opportunities for investors in the private markets space. Joe discusses innovations in the private markets space and growing niche sectors that are taking this space by storm – many of these themes are addressing many of today’s topical issues such as renewable energy, food security, transportation and healthcare.

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Medical Office Buildings: The Crown Jewel of Office Real Estate

Courtesy of ORG Portfolio Management

In the wake of the COVID-19 pandemic Medical Office Buildings (“MOB”) had solid performance, unlike traditional office. This is primarily due to MOBs being unaffected by work-from-home because of medical procedures requiring in-person attention and specialized equipment to be performed properly. Patients were also resistant to telemedicine with nearly two thirds of Americans preferring to visit their doctor in person. The aging population of the United States is another tailwind for MOBs. In this article, ORG will discuss the characteristics of MOBs and what investment strategies are viable in today’s environment.

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The Case for Medical Office in a Core Real Estate Portfolio

Courtesy of Upshot Capital Advisors

Institutional investors have long included core, private real estate in mixed asset portfolios because of: Income streams that are relatively high and stable, diversification – a low correlation to other financial assets, inflation protection – the ability to mitigate inflationary pressures through increases in rents and the inherent value of the physical property, and a total return that is typically better than fixed income and less volatile than equities. Medical office assets provide these benefits and are 11% of the U.S. commercial real estate market but are generally under-represented in private, institutional portfolios. Investors looking to improve the efficiency of their real estate portfolio should consider a healthy allocation to medical office. In this paper we examine medical office, its demand drivers and how it fares against preferred institutional sectors (industrial and multifamily) on its ability to deliver the benefits of core real estate in a mixed asset portfolio. Let’s start with a look at the drivers of demand for healthcare space.

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IPM – Edition May 2023

Courtesy of UBS Asset Management

Explore the latest investment positioning across real estate, infrastructure, food & agriculture, private equity and private credit. We look at how these private markets asset classes are adjusting to the challenges of the current macroeconomic environment. In 2023, persistent high inflation, volatility across the global banking sector, and continued geopolitical conflicts remain key investment themes. And although many investors remain cautious and there being potentially less funds chasing after the same deals, there could be opportunities for those who are willing to deploy capital.

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Monthly Research Report – Europe

Courtesy of AEW

Our research shows that the Prime European Shopping centre repricing allows for rebound, with our base case scenario forecasting projected returns for prime shopping centres at 7.7% p.a. over the next five years, outperforming the all-sector average. The retail occupier market is stabilising post lockdowns, and with an improving macroeconomic outlook, we expect rents to grow 1.4% p.a. for prime shopping centres during 2023 to 2027. Notably, our forecasts suggest that there will be some capital value recovery. Whilst the higher interest rate environment has undoubtedly slowed investment activity, the prime markets for shopping centres and high street retail are proving increasingly attractive, with 87% of shopping centre markets and 64% of high street retail classified as attractive or neutral in our updated relative value analysis.

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Continuation Funds – Considerations for Limited Partners and General Partners

Courtesy of Institutional Limited Partners Association (ILPA)

Continuation fund transactions have been a prominent feature of the private equity industry over the last few years. More General Partners (GPs) have looked to move selected assets into a continuation vehicle, while giving Limited Partners (LP) the option to roll into the new vehicle, sell their interests and take liquidity or some combination of both options. With increased capital and sophistication in the secondary market, it is likely that these transactions will continue to be a tool for the industry moving forward.

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US Real Estate Faces Challenges, but Opportunities Exist

Courtesy of Cambridge Associates

Investors are understandably concerned about US commercial real estate (CRE), given the rapid changes in interest rates since the beginning of 2022 and the recent banking sector stress. Indeed, the Federal Reserve now expects a recession, which we anticipate will lead to declines in real estate prices in the near term. In the medium term, however, we think that secular tailwinds will continue to benefit select real estate sectors, such as industrial, multifamily housing, and some niche segments.

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Navigating Uncertainty— Risks and Opportunities in Commercial Real Estate

Courtesy of MetLife Investment Management

A combination of macro themes and specific property-type and capital-markets circumstances will present both challenges and opportunities for commercial real estate investors in the months ahead. Liquidity is low, and some segments of the industry like the office sector are facing significant challenges in the space market. Despite the challenges, the coming quarters will likely also prove to be a period of opportunity as is typical for capital providers in a market with low liquidity.

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Life Science GMP: An In-Depth Analysis

Courtesy of ORG Portfolio Management

The life science industry has seen unprecedented growth in the last few years. Record levels of venture capital funding and the increase of focus on public health has led to rapid growth in the pharmaceutical industry. As a result, tenant demand from life science companies has increased quickly. Commercial real estate investors have recognized this shift and have allocated record amounts of capital to providing space for these tenants. However, many investors have failed to distinguish the two main types of life science real estate: Research and Development (“R&D”) facilities and Good Manufacturing Practice (“GMP”) facilities. In this article, we will take a deeper dive into life science GMP real estate and the role it can play in a real estate portfolio.

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The Growing Investment Opportunity for Commercial Real Estate Debt

Courtesy of Ares Management

The commercial real estate (“CRE”) debt market today is experiencing a confluence of market dynamics that Ares Management believes have created attractive near-term investment opportunities. The market environment is characterized by a decreasing availability of debt financing, resetting property valuations, and rising interest rates, which Ares believes could collectively result in favorable risk-adjusted return opportunities.

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Global Asset Managers: Re-Charting the Course

Courtesy of Morgan Stanley

A new macro regime calls for a recalibration of growth priorities. Growth zones – Private Markets, EM/China and Solutions – are nuanced, requiring a more selective approach, and ESG/Thematic opportunities require flexibility to navigate regulatory uncertainty/factor risks. Profit margin squeeze linked to growing complexity, and inflationary costs against a less supportive cyclical and secular top-line outlook are reinforcing pressures for scale and the need for M&A to improve access to growth/efficiency.

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Inflation Protection in Infrastructure Portfolios: Not All Assets are Cut From the Same Cloth

Courtesy of PATRIZIA

In this brief, we present analysis that shows that when it comes to inflation proofing, not all infrastructure assets are the same. Broadly speaking, infrastructure assets can benefit at the operational level during a period of high inflation. However, in some cases, these gains can be more than offset from a revaluation perspective due to the effects of capital structure issues and higher applied discount rates as a result of a subsequent period of higher interest rates.

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Unique Attributes of Real Estate Investments

Courtesy of MetLife Investment Management

Guy Haselmann, Head of Thought Leadership at MetLife Investment Management (MIM), recently sat down with William Pattison, Head of Real Estate Research at MIM to discuss real estate investing. Will helps break down the various sectors into understandable categories and mentions some of the challenges and new opportunities of each. Will then describes some of the unique and diverse characteristics which portfolios receive through investing in some of these subsectors.

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Changing Course: Green Shipping Corridors

Courtesy of PATRIZIA

Green shipping corridors are emerging as an important pathway in decarbonising the shipping industry. Momentum is building, but almost all the work with regards to alternative fuels, the global shipping fleet and the existing landside port infrastructure, lies ahead.

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Active REITs in a Real Estate Allocation: A Guide for Investors

Courtesy of CBRE Investment Management

Increasingly, investors are turning to REITs to optimize and enhance exposures in real estate, one of the cornerstones of a real asset allocation. At CBRE IM, we see listed real estate as complementary to private real estate; we further see actively-managed listed as essential for investors.

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RealAccess – Public vs. Private, Isn’t All Real Estate the Same?

Courtesy of Nuveen Real Estate

Yes, REITs own commercial real estate. Yes, private real estate owns commercial real estate. But from there, their respective roles in a portfolio depart. In this issue, we explore buying opportunities in the market today: currency dispersions, the resurgence of necessity retail centers, changes in housing trends, regional and city diversification and the emerging sector of scientific lab space. These are some of the technical and creative ways that we create more diversified, more resilient real estate portfolios to help buffer today’s market challenges.

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Global Macro Outlook | Q2 2023 — Navigating Turbulence

Courtesy of Manulife Investment Management

The current tightening cycle in advanced economies is the most aggressive in decades, and while markets are pricing in rate cuts, we think it’s premature to anticipate an easing cycle just yet. We believe the macro backdrop will get worse before it gets better, and investors should expect to experience higher and longer bouts of volatility through the second half of 2023.

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Core Real Estate

Courtesy of Meketa Investment Group

How can real estate help diversify an institutional portfolio? In this white paper, Meketa Investment Group provides an overview of core real estate, examine the distinct risk and return characteristics of the asset class, and review key advantages and disadvantages investors considering an allocation should be aware of.

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Completing Real Estate Portfolios: Accessing New Economy Real Estate Through the Listed Market

Courtesy of Ranger Global

Over the last several years, sophisticated institutional investors have increasingly begun to appreciate the benefits of complementing their private real estate portfolios with strategic, long-term allocations to listed real estate. Portfolio expansion into the public markets has allowed for broader sector and geographic diversification and has enhanced real estate portfolios’ ESG attributes by owning best-in-class performers. This represents a change in investment strategy for many institutions, including some of the world’s largest sovereign wealth funds and endowments, whose portfolios have historically sought exposure to real estate primarily through the private markets. Ranger Global believes that the trend of combining both private and listed real estate exposure is being driven by investor recognition of four primary factors: innovation and growth in specialty property types, public/private arbitrage opportunities, attractive investment characteristics, and highly-aligned interests drive shareholder value creation.

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How Does the U.S. Regional Bank Crisis Impact Commercial Real Estate?

Courtesy of Principal Asset Management

Multiple banking failures, including the high-profile collapse of Silicon Valley Bank, have sparked concerns about an impending credit crisis in the U.S., and raised red flags around commercial real estate exposure within the broader financial system. While the recent failures have justifiably caused concern over the health of the banking sector, as bank runs can happen quickly and spiral out of control, it is far more well-capitalized than it was before the Global Financial Crisis (GFC), thanks to more stringent oversight and capital requirements. Moreover, the Federal Deposit Insurance Corporation (FDIC) and Federal Reserve’s (Fed) swift action following the bank failures have prevented a broader credit crunch, which would have had significant and long-term consequences. However, as investors and regulators scrutinize potential sources of concern to the financial system, the questions surrounding commercial real estate are bound to remain elevated.

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Single-Family Rental Homes: The Cutting-Edge of Residential Real Estate Investing

Courtesy of ORG Portfolio Management

Recently, housing affordability has been a topic at the forefront of the real estate industry in the United States. Due to stagnant inflation adjusted wages and increasing mortgage rates eclipsing 20-year peaks of nearly 7%, homeownership is more difficult than ever for the average American family. As a result, the number of homeowners has declined steadily since the mid 2000’s and was further accelerated by the Global Financial Crisis. According to the S&P CoreLogic Case-Shiller 20-City home price index, homes were 6.77% more expensive year-over-year from November 2021 to November 2022. As housing affordability conditions continue to worsen, the spread between the cost to rent and the cost to own has widened quickly. As of June 2022, the monthly cost of a mortgage payment was over $800 higher per month than a rental payment on a similar space. This is the highest mortgage-lease spread since the beginning of the 2000’s. As a result of these these market conditions, rental housing has become far more attractive and cost effective for most individuals. Today, the Single-Family Rental (“SFR”) market has exploded in popularity among both Americans looking for affordable housing options and real estate investors alike.

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Tailwinds Propel Life Science Sector Forward Over the Long Term

Courtesy of Nuveen Real Estate

Sentiment for the life sciences sector reached a fever pitch during the COVID-19 pandemic; global attention turned to the biopharma industry as it mobilized in record time to deliver life-saving vaccines. This unprecedented success was the culmination of decades of research performed in just a handful of laboratory clusters in select cities across the U.S. Independent of the pandemic, life science research has been fueled by other macroeconomic tailwinds. The rapidly aging global population has demanded and will continue to demand breakthroughs in therapies and treatments for degenerative diseases that are more prevalent with age. This megatrend has led to record levels of both public and private funding for the biopharma industry and unprecedented demand for laboratory R&D space.

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Europe Real Estate Sector Report – Spring 2023

Courtesy of Principal Asset Management

Principal's bi-annual Europe real estate sector report includes insights from investment professionals across private and public equity, it provides current conditions and outlooks for the core real estate sectors, as well as non-traditional sectors such as data centers and healthcare. Easily scan for the current conditions and outlook of a sector using the infographics within the report, as well as read quick overviews of ratings, supply and demand, capital values, and more. This comprehensive report is designed to help you evaluate European real estate investment opportunities on the horizon.

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U.S. Regional Banks: Crisis Averted but Commercial Real Estate Likely to Face More Scrutiny

Courtesy of Principal Asset Management

The recent crisis in regional banks in the U.S. has stabilized, but many issues still need to be resolved and more consolidation in the sector is possible, as seen in the recent event over the weekend with the merger of Swiss banks UBS and Credit Suisse. While systemic risk for the U.S. appears to be a small likelihood, the closure of two large regional lenders and further potential consolidation opens questions around broader debt exposure in banks, particularly to commercial real estate at a time when values are deteriorating, especially in the office sector.

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Data Centers: The Tenants Behind the Demand

Courtesy of Principal Asset Management

We are living in the digital age. Society relies on digital applications—and the data creation, storage, and processing they require—for work, education, transportation, entertainment, healthcare, and just about every other aspect of our modern lives. In fact, three times as much new data was created and consumed in 2022 than 2018. All that data is processed inside a data center, so it should come as no surprise that demand for data center capacity is at an all- time high and continues to rise, having grown 137% in the last year alone.

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The Decisive Eye – Spring 2023

Courtesy of Principal Asset Management

Europe’s vibrant travel industry saw a rebirth in 2022 after the hotel industry suffered during the pandemic. Consumers are willing and eager to spend but central banks are applying the brakes on credit through higher interest rates to reduce inflation. This has set up an intriguing environment where hotel occupancy is forecast to remain robust but where owners, particularly those poorly capitalized, will struggle to remain competitive. It is this paradoxical environment where hotel investors may find some interesting opportunities.

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U.S. Real Estate Sector Report – Spring 2023

Courtesy of Principal Asset Management

This bi-annual real estate sector report includes insights from investment professionals across all four real estate quadrants. It provides current conditions and outlooks for all core real estate sectors, as well as non-traditional sectors such as data centers and life sciences.

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Real Estate Outlook – Global, Edition March 2023

Courtesy of UBS Realty Investors LLC

News on the economy at the start of 2023 was better than expected. The eurozone allayed fears and grew slightly in 4Q22, while the US economy maintained a good pace of expansion. Warm weather curbed energy use in Europe and natural gas tanks remained close to full. Optimism also flowed on China following the government’s rapid ditching of its zero-COVID-19 policy. In addition, inflation has fallen globally and looks to have peaked, but remains far above the central bank’s 2% target. The outlook is mixed, with UBS Investment Bank’s analysis of hard data putting recession in the US within the next 12 months at a near certainty, though a strong January jobs report showed little signs of it so far. In the eurozone, the recession probability has fallen back to 25%, while China’s re-opening is set to boost Asia Pacific.

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Infrastructure Investing: Embracing Complexity in Times of Structural Change

Courtesy of Apollo Global Management, Inc.

After a tumultuous 2022, the US economic outlook for 2023 remains cloudy. Renewed uncertainty about inflation and the Fed means markets will continue to be volatile. With that in mind, we believe that infrastructure can offer key attributes—downside protection, low correlation to markets, potential protection against inflation—for investors deploying capital today.

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IPM – Edition March 2023

Courtesy of UBS Realty Investors LLC

In this edition of Insights into Private Markets (IPM), UBS explores how the private markets asset classes of real estate, infrastructure, private equity and private credit are reacting to the challenges of the current macroeconomic environment. UBS covers the topical issues of inflation, interest rates, the energy crisis, supply chain disruptions, and key considerations for investors. UBS explores the growing niche sectors such as life sciences real estate, secondaries as an access point to private markets, and private credit – how the asset class was born during a time of crisis and how it’s faring in today’s environment.

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Subordinate Debt: Discussing the Opportunities in Mezzanine Debt and Structured Financing

Courtesy of ORG Portfolio Management

The rising interest rate environment is beginning to put large amounts of stress on real estate capital stacks today. Large institutional lenders have become more uncertain about originating new loans and will continue to grow more pessimistic throughout the year if the economy experiences a recession. Because of this, the dislocation in real estate debt markets will be significant and present lots of opportunities for debt investing.

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Data Centers: Empowering a Data-Driven World

Courtesy of Principal Asset Management

Data centers have become critical components of our growing dependence on technology. Surging demand coupled with high barriers to entry for new supply and a global search for attractive investment returns have brought the sector to center stage.

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Data Centers: Mitigating Risks for Continued Growth

Courtesy of Principal Asset Management

The essential role of data in our lives is a secular trend that continues to accelerate, fueled by surging digital data creation, cloud computing, the adoption of new technologies, and the growing penetration of the internet in developing markets. As businesses, consumers, and new technologies use ever-increasing amounts of data, data centers have become the cornerstone of our data-dependent world.

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2023 Market Outlook

Courtesy of The Amherst Group

In this report, we share our most recent research that explores economic conditions and impacts on the real estate sector, namely: resilience in the housing market, despite softening home prices; housing demand driven by significant deficit in quality homes; mixed commercial real estate recovery; and opportunities in securitized MBS products.

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Investing in Today’s Infrastructure Environment

Courtesy of Harrison Street

Learn about an infrastructure investment strategy focusing on assets that serve Municipality, University, School and Hospital (“MUSH”) users. The demand for the underlying investments remains strong and has typically been driven by demographics, decarbonization initiatives, aging infrastructure and/or a need for additional capital sources by institutions and private investors. Along with highly structured contractual obligations, the mission-critical nature of the assets to the end users bolsters the probability of long-term success and mitigates off-taker credit risk.

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2023 Market Outlook

COURTESY OF ORG PORTFOLIO MANAGEMENT

2022 was a year marked by uncertainty and volatility. For investors willing to take risks however, the year provided investment opportunities. Structural changes throughout the world in the aftermath of the COVID-19 shutdowns spurred outperformance from residential and industrial properties while punishing retail and office sectors. The high and persistent inflation which was 6.5% year-over-year in December 2022 has led investors to assess rising interest rates and the effect on the broader economy. For most of 2022, real estate professionals saw a daunting investment environment with both equity and debt capital being scarce and transaction volumes coming to a halt. This has led transaction-based valuations to become increasingly questionable. In this article, ORG will provide insight on the key risks and opportunities facing private real estate investors in 2023.

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Investing in Water Infrastructure

Courtesy of MetLife Investment Management

Guy Haselmann, Head of Thought Leadership at MetLife Investment Management, recently sat down with Filipe Cunha, AVP of Infrastructure and Project Finance to discuss global opportunities in the rapidly growing—but under resourced—area of water infrastructure. The discussion covered areas such as clean waters journey, treatment plants, wastewater, storage, droughts and floods, and the technology that makes it all work.

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Real Assets. Real Zero.

Courtesy of EG

Real Zero carbon is different from ‘net zero’ carbon claims in that it doesn’t use carbon offsets or bulk Renewable Energy Certificate (REC) purchases to ‘net off’ total emissions at zero.

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Investing in Commercial Real Estate Debt

Courtesy of Nuveen Real Estate

Commercial real estate debt (CRE) continues to see strong interest from investors globally, especially in today’s volatile, rising interest rate environment. The ability to offer attractive returns with low volatility, steady income flows, and fixed or floating rate structures make real estate direct lending attractive to a wide swath of institutional investors.

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The Emergent Value of Third City Markets – Ranking and Evaluating 20 Under-the-Radar Markets in America

Courtesy of Graceada Partners

They are long standing economic hubs that have stood the test of time over the last century. But, the pandemic has shifted how some people work, and this led to an uptick in people moving from primary markets and dispersing to secondary and tertiary cities in the U.S. The growth of secondary markets like Austin, Charlotte and Sacramento—the phenomenon and growth of what Graceada Partners refers to as the outpost economy—was only the beginning of this paradigm shift. The emergence of viable assets within third city markets have led institutional investors to further analyze these tertiary regions. Using industry data and an internal Graceada Partners formula to rank cities based on criteria ranging from cost of living to quality of life to home values, this report will detail the top 20 third city markets in the United States that could be poised for more investment attention in the coming quarters.

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Real Assets Study 2023 – Sustainable Real Assets in the Spotlight

Courtesy of Aviva Investors

The Real Assets Study 2023 provides investor insight on asset allocation, risks and opportunities, and preferred routes to market, as well as a deep dive into attitudes towards sustainable real assets – covering everything from net-zero targets to whether investors see a trade-off between achieving ESG impact and financial returns.

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Time For an ESG Reset: Results from RCLCO’s Survey

Courtesy of RCLCO Real Estate Consulting

RCLCO’s Real Estate Market Sentiment Survey has tracked confidence in U.S. real estate market conditions for over 10 years. The survey respondents span the real estate industry from operators, developers, investors, service providers, municipalities and more. In 2022, we added a new section to the mid-year survey to better understand the real estate industry’s interest in and adoption of environmental, social, and governance (ESG) initiatives within the investment process. ESG has become a prominent investment topic in recent years—and has recently experienced growing backlash from both ends of the political spectrum. Recognizing these reactions, we wanted to better understand how, if at all, it is actually influencing investment or business decisions in real estate in the U.S.The results suggest a mixed story, and, we believe, a general lack of appreciation for why ESG became a matter of discussion in the first place. This article attempts to unpack what has become a loaded topic by going back to the original intent of the ESG movement in investing, and using our survey results to highlight how it is perceived and put into practice today. We then conclude with our view on why we think having ESG as a component of a company’s investment strategy is integral to long-term success—and how companies can get started (or restarted, as necessary).

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Despite Recent Volatility, U.S. Multifamily Remains on Track

Courtesy of CP Capital

The long-term outlook for U.S. multifamily investments remains strong due to ample dry powder, a structural supply-demand imbalance, and favorable employment, income, and demographic trends. Market conditions are expected to improve in 2023 and beyond as interest rates and supply pipelines level off.

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Reinventing Supply Chains

Courtesy of Partners Group

Where there is disruption, there is opportunity. COVID brought the entire global value chain to a halt, with the scale and speed of the pandemic’s impact on global supply chains eclipsing anything that had been seen before. In Partners Group’s “Reinventing Supply Chains” paper, the firm discusses how private markets play a critical role in creating the resilient and sustainable supply chains of tomorrow.

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Inside Real Estate Strategy Outlook 2023

Courtesy of Principal Asset Management

As the world economy begins to stall, headwinds indicate various challenges on the horizon. We expect 2023 will be a year of transition with investors focusing on playing defense, while preparing for offense. Explore our findings in the 2023 Inside Real Estate annual strategy outlook.

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2023 U.S. Investor Intentions Survey

Courtesy of CBRE

Concerns over rising interest rates, tighter financial conditions and a looming recession are negatively impacting investor sentiment. This will weigh on commercial real estate investment activity, particularly in the first half of 2023. CBRE forecasts that 2023 investment volume will be down by 15% from last year. As interest rates and economic conditions stabilize in the second half of 2023, we expect investment activity will increase.

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2023 Asia Pacific Investor Intentions Survey

Courtesy of CBRE

CBRE's 2023 Asia Pacific Investor Intentions Survey was conducted in November and December 2022. Over 500 responses were received from participants who were asked a range of questions related to their buying intentions, perceived challenges and preferred strategies, sectors and markets for the coming year.

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WALT Discovery: Industrial Assets with Below-Market Rents and Near-Term Lease Expiry Still an Attractive Combo for Investors

Courtesy of Newmark

While the attractiveness of shorter weighted average lease terms (WALTs) is known and has impacted industrial investment activity for years due to their highly attractive mark-to-market potential, the benefit has yet to be quantified in comparison to assets with longer terms in place. Now, as transactions become harder to finance, it is more important than ever to equip the market with data-backed insights to support investment decisions.

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2023 Outlook – Navigating the Labyrinth

Courtesy of Hines

The Fed’s 14-year low-interest rate experiment finally ended. This is a new season of investing, without the familiar tailwind of cap-rate compression. Market conditions for real estate have changed in many countries around the world and investors are adapting their investment strategies. Our investment team has been analyzing market data using proprietary research to handicap the existing landscape as we enter 2023. Our new 2023 Outlook Report dives into the variables we’re tracking to identify and evaluate future real estate investment opportunities.

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Global Macro Outlook | Q1 2023 — The Year Ahead

Courtesy of Manulife Investment Management

Persistent stagflationary dynamics, continued geopolitical upheavals, and an aggressive Fed. As we consider the year ahead, we expect to see a game of two halves, where challenging conditions are likely to prevail in H1 before improving through H2. We examine macro trends that could define 2023.

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Sustainability and Private Equity Real Estate Returns

Courtesy of Avis Devinea, Andrew Sanderfordb, and Chongyu Wangc

This paper explores private equity real estate fund performance and voluntary environmental, social, and governance (ESG) disclosures. Using data from the National Council of Real Estate Investment Fiduciaries (NCREIF), it examines the relationship between performance for funds in the Open Ended Diversified Core Equity (ODCE) Index and reporting to the Global Real Estate Sustainability Benchmark (GRESB), a platform for disclosure about fund/firm-level ESG strategies and performance. The empirical analyses suggest four conclusions. First, there has been substantial adoption of and reporting to GRESB in the last 5 years, suggesting that reporting to GRESB is a form of table stakes for ODCE members. Second, GRESB participation and performance are both significant predictors of cross-sectional fund returns. Third, GRESB participation and performance are associated with the price appreciation component of fund total returns but not with the income component. Fourth, the relationships between fund returns and GRESB participation and scores are independent of local economic conditions. These results close an important gap in the literature about private equity real estate fund performance and ESG/climate change mitigation efforts in commercial real estate markets.

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Real Estate Outlook – APAC, Edition December 2022

Courtesy of UBS Realty Investors LLC

APAC GDP growth accelerated to 4.8% YoY in 3Q22, largely driven by the rebound of China (+4%). Even without its boost, the regional performance was stable as the tightened monetary condition takes its time to feed through. Weaker external demand and increased energy import prices eroded trade balance, but the impact was mitigated by robust private consumptions from post-pandemic spending.

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Real Estate Outlook – US, Edition December 2022

Courtesy of UBS Realty Investors LLC

Private real estate pricing and transaction volume are feeling the impact of higher cost of capital and concerns about weaker economic fundamentals. According to the NCREIF Property Index, appreciation for 3Q22 slowed dramatically from the beginning of the year. The apartment and industrial sectors depreciated by 0.41% and 0.57% respectively, compared to the lofty appreciation of 4.88% and 11.09% in 1Q22. Retail and office depreciated by 0.58% and 1.79%, respectively, in 3Q22. Transaction volume decreased by 21% YoY and bid-ask spreads are widening. We expect further pricing corrections to be widespread across the sectors and regions in 2023.

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Ethnic Grocer Anchored Retail – An Area for Outperformance in Today’s Retail Environment

Courtesy of ORG Portfolio Management

Ethnic grocer anchored retail centers have been higher returning alternatives to conventional grocer anchored centers in recent history without considerable credit risk. These assets can be a very attractive area for investment due to significant demographic tailwinds in demand, steady income and appreciation returns during any economic conditions and the strong congregation point it can provide to an ethnic community.

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Outlook 2023: Global Economy

Courtesy of Schroder Investment Management

Businesses, consumers and markets in the advanced economies seem to have adjusted to the idea recession is coming. The chairman of the US Federal Reserve (Fed), meanwhile, has stopped talking about soft economic landings. For their part, UK politicians are no longer telling us they can use borrowed money to ramp up spending and cut taxes while inflation is at four-decade highs. So, encouragingly, policymakers are now helping to create a sense of realism. Falling interest rates would be the payback for taming inflation and the restoration of price stability, which is so important for businesses to plan and invest sensibly. Lower rates would also afford consumers some relief from a cost of living crisis of historic proportions. For investors, it might allow a recovery in valuations, albeit all bets could be off should geo-political fault lines opened up following the start of the Russia-Ukraine conflict deepen, and/or relations between the US and China change.

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Real Estate Outlook – Europe, Edition December 2022

Courtesy of UBS Realty Investors LLC

The economic outlook for Europe remains extremely challenging. Inflation in both the eurozone and UK has exceeded 10%, resulting in negative real wages across the board and consumer spending being impacted accordingly. Higher borrowing costs are also starting to impact households and businesses. The UK and eurozone are expected to be in a shallow recession by early 2023, with a weak recovery thereafter. Inflation should start coming down next year as base effects come into play and the impact from energy costs becomes deflationary in 1Q24. But core inflation will keep CPI above target in both markets at an annual average of 5.3% in 2023, before dropping to just above 2% in 2024.

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ISA Outlook 2023

Courtesy of LaSalle Investment Management

The global economy in general – and real estate markets in particular – are currently in the throes of an acute episode with pressure coming from every direction. Eventually, we expect post-COVID-19 pressures such as inflation, supply chain issues and large fiscal stimulus to settle and a new normal to emerge.

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Savills Investment Management Outlook 2023: Urban Industrial & Logistics, Essential Retail, Affordable Housing and Real Estate Debt Likely to be Safest Havens in 2023

Courtesy of Savills Investment Management

Latest Savills Investment Management global investor outlook report highlights how investors need to go back to basics and assess the fundamentals in order to weather what is likely to be a challenging year for property markets. Nevertheless, opportunities will present themselves in sectors with strong, long-term growth characteristics, since markets always over-react – there is value to be found in every sector, but there is an increasing focus on top-quality locations, robust ESG credentials and strong fundamentals.

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The Value of Clean Air

Courtesy of DWS & Global Action Plan

DWS, in partnership with the environmental charity Global Action Plan, designed a survey of over 5,000 participants to understand the importance of air quality to residential tenants in Germany, the Netherlands, and the UK. The results demonstrate that not only do tenants consider air quality as a significant factor in their property selection process, but they would be willing to pay more to improve air quality in a home they already occupy. The results also show that there is a lack of understanding around what factors really affect air quality both inside and outside the home. This provides an opportunity for property managers and institutional real estate owners to plug the information gap and introduce active asset management strategies that lead towards cleaner, safer homes for residential tenants in the long term.

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The Global Real Estate DEI Survey 2022

Courtesy of ANREV, INREV, NAREIM, NCREIF, PREA, REALPAC, ULI & Ferguson Partners

The Global Real Estate DEI Survey is the only corporate study of diversity, equity and inclusion (DEI) management practices and data benchmarking in the commercial real estate industry. This Survey represents more than 357,041 full-time employees, $2.34 trillion of assets under management, and a cross section of the commercial real estate industry in terms of size, region and business classification. The Survey brings together participation from 192 unique organizations which provided 210 submissions detailing their DEI practices in North America (81.4% of respondents), Europe (12.4%) and Asia- Pacific (6.2%). Data was collected between July 28 and October 7, 2022.

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2023 Global Investor Outlook – Navigating the Global Real Estate Reset

Courtesy of Colliers

This is the third edition of our annual outlook for global property investors and is an exploration of the forces that will shape the real estate world in 2023 and beyond. The number of investor responses for this survey has been higher than ever, undoubtedly reflecting investors’ concerns and views on global and regional real estate markets in the year ahead. In addition to investor responses to the survey, we interviewed over 30 Colliers Capital Markets professionals to provide their local, sectoral and regional insights.

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RCLCO’s Real Estate Market Sentiment Survey

Courtesy of RCLCO Real Estate Consulting

RCLCO’s Real Estate Market Sentiment Survey has tracked real estate market conditions in the U.S. for over 10 years. Events of the last three years have generated unprecedented volatility in the index – with significant swings in sentiment (both positive and negative) with the advent of COVID-19, the recovery, and now recent Fed action to tamp down persistent inflationary pressures that stemmed from the pandemic. Read in detail how geopolitical uncertainty, persistent high levels of inflation, and rising interest rates have pushed the economy into a recessionary zone.

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2023 Outlook

Courtesy of Cambridge Associates

This report provides a forward-looking view of 9 different asset classes and themes from Private Investments, Credits, Equities, Hedge Funds, to Sustainability & Impact. Cambridge Associate’s outlook for 2023 is rooted in an expectation that the cyclical backdrop will remain challenging amid weak global economic growth, with risks skewed towards missing the current consensus of 2% growth. In that regard, thoughtful decisions – not rash actions – during chaotic environments are what would separate top-performing investors from others.

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Outlook for Real Estate – Five Themes for 2023

Courtesy of Nuveen Real Estate

The themes for 2023 in real estate are driven predominantly by the continued fallout of surging inflation and interest rate hikes from central banks. While the general consensus is that monetary policies will start to ease in the new year, the impact it will have on real estate is yet to be fully felt.

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2023 Outlook – Global Real Estate

Courtesy of Barings

In this roundtable discussion, our experts across real estate debt and equity discuss how they are navigating today’s challenges and weigh in on where investors can turn to find attractive returns. Featuring Nasir Alamgir, Greg Eudicone, Valeria Falcone, Joe Gorin and Séverine Maumy-Laffineur.

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Top 10 Questions for Real Estate Markets in 2023

Courtesy of UBS Realty Investors LLC

In 2023, the environment for real estate looks set to be more challenging, with headwinds coming both from higher interest rates and a weaker economy, which will impact on occupier demand. Against this backdrop, we look at 10 key questions for real estate investors at the turn of the year and how we would approach them.

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Insights into Private Markets – December 2022 Edition

Courtesy of UBS Realty Investors LLC

3Q22 was a challenging one for private markets. Spreads between risk-free rates have narrowed or even reversed, leverage costs have soared and the economic outlook has weakened further. In this environment, it is crucial existing portfolios are positioned against some of the headwinds we know are coming next year.

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Top 10 With… Interview With Jon Hollick, Zac Gauge and Olivia Drew on Life Sciences

Courtesy of UBS Realty Investors LLC

The many macro‑drivers behind the growth of the UK life sciences sector – the third largest market of its kind – are contributing to increasing investors’ appetite towards this relatively new niche. And while access to this field isn’t straightforward, the social impact the sector can unlock is considerable. Jon Hollick, Zac Gauge and Olivia Drew explain what the sector looks like from the inside, how investors can navigate this space, and what future developments may arise.

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How to Protect Your Portfolio Amid a Looming Recession

Courtesy of HLC Equity

Economic turmoil is nothing new. The Great Recession is not so far in the rearview mirror. COVID sent the stock market crashing down and then roaring to new highs. Sky-high inflation and rising interest rates are just the latest conditions to spook investors. Precisely where the markets go from here is anyone’s guess. However, there is good reason to believe that a recession is on the horizon. If not today, then most likely within the next six to twelve months. We’re already starting to see a market correction. There’s no better time than now to start preparing your portfolio for an impending downturn.

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2023 Infrastructure Outlook

Courtesy of UBS Realty Investors LLC

The infrastructure sector remains resilient despite the market turmoil in 2022. Secular trends such as digitalization and decarbonization will continue to drive the need for new investments. However, macro conditions have worsened significantly. Investors can no longer count on cheap credit to boost investment returns. Looking ahead, more reflection and rigor are needed in their investment and asset management strategies to deliver positive outcomes.

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U.S. Economic & Property Market Perspective Q3_2022

Courtesy of AEW

Rapid monetary tightening has resulted in a 10-year Treasury rate above 4%, up from 1.5% at the end of 2021. The private real estate market has yet to readjust to this new monetary environment as the average NPI appraisal cap rates sit well below 4%. The stage has been set for property yields to rise; the only question now is how much yields will rise and will income growth help offset the potential expansion in cap rates and subsequent decline in values.

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Asia Pacific Market Perspective Q3_2022

Courtesy of AEW

New risks and opportunities lie ahead as markets rebalance and reprice. AEW is focused on markets with strong income growth that can offset the impact of higher interest rates. Read AEW’s latest research perspective to get insight into property markets in the Asia Pacific region.

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European Office Markets Starting to Re-Balance

Courtesy of AEW

This report provides an update on European office markets, which have been impacted by the concerns over the long-term impact from working from home (WFH) or hybrid work practices, which is reflected in the discounts to NAV for European office REITs.

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Leverage Strategy

Courtesy of Walton Street Capital

A summary of the common leverage tools used by U.S. real estate debt funds in executing their investment strategies.

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Core Real Estate for Institutional Investors

Courtesy of MetLife Investment Management

Commercial real estate was once viewed as a niche investment sector, but after several decades of evolution, it has emerged as a core asset class for many institutional investors. In recent decades, liquidity has improved, transparency has risen, and core real estate’s investor base has broadened substantially. Joint ventures, private funds, and public and private real estate companies draw capital from sources both foreign and domestic. These vehicles and their investors play an important role in today’s real estate capital markets.

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Top 10 With… Interview With Olivia Muir on ESG in Private Markets

Courtesy of UBS Realty Investors LLC

ESG as an issue is no longer a simple nice-to-have. The topic has moved from somewhere near the bottom of many investors’ priority list, up towards the top. Head of ESG, Olivia Muir, explains how this complex landscape has evolved, the benefits and challenges of investing through an ESG lens in private markets and the business’ current priorities.

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Resilient Housing: Greater Demand, Lower Risk, Recession Resistant

Courtesy of Principal Asset Management

The U.S. residential rental market has demonstrated remarkable strength since the pandemic. All types of housing, including traditional multifamily, single-family rental, and manufactured housing, have exhibited strong occupancies, collections, and rent growth. Furthermore, all price points, from luxury to lower end, and locations, both urban to suburban, are experiencing success in these key operating metrics.

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Emerging Trends in Real Estate 2023

Courtesy of PwC and the Urban Land Institute

Emerging Trends in Real Estate is a trends and forecast publication now in its 44th edition, and is one of the most highly regarded and widely read forecast reports in the real estate industry. Emerging Trends in Real Estate 2023, undertaken jointly by PwC and the Urban Land Institute, provides an outlook on real estate investment and development trends, real estate finance and capital markets, property sectors, metropolitan areas, and other real estate issues throughout the United States and Canada.

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Opportunities in Moderate Income Rental Housing

Courtesy of MetLife Investment Management

Over the past several decades, the residential rental sector has grown from relative obscurity to become one of the largest and most important institutional investment asset classes. The sector offers a wide range of investment options, including risk profiles, housing formats and geographies. In recent years, investors have also begun considering how the income profiles of residents could shape investment strategies. Looking at strategic opportunities in the sector, we believe Moderate-Income Rental Housing offers attractive long-term risk-adjusted returns while supporting the need for more affordable housing in the U.S.

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Investment Opportunities in Private Commercial Mortgage Investments

Courtesy of MetLife Investment Management

At approximately $5.2 trillion, just over half the size of the U.S. corporate bond market, the U.S. commercial mortgage market is home to a variety of attractive investment opportunities. Commercial banks and life insurance companies hold the majority of U.S. private commercial mortgages. In the past, the substantial organizational infrastructure required to access and underwrite them has limited institutional investors’ ability to invest in this asset class. Today, new commercial mortgage investment vehicles are emerging every year, and the asset class is becoming more accessible to a broader range of investors. Also, as financial institutions become more familiar with the asset class, more options for leveraging commercial mortgage loan (CML) investments are becoming available. We believe this increased accessibility and familiarity has emerged at an opportune time, as many institutional investors, from public and private pension funds to foundations and endowments, remain under-allocated to the sector and are seeking income-oriented strategies.

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Markets Report Q3 2022

Courtesy of Middleburg Communities

Middleburg Communities is pleased to present our Middleburg Markets Report for the 3rd quarter of 2022. This report summarizes our current thinking about the rental housing market both nationally and in those markets that we most closely evaluate for development, acquisition, or other forms of investment.

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National Student Housing Report – Q4 2022

Courtesy of Yardi Matrix

Student Housing Maintains Strength – The fall 2022 school year started with a record number of bedrooms preleased and solid annual rent growth. While rent growth is starting to cool, fundamentals still point to a positive outlook for the industry.

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Real Estate Outlook – APAC, Edition September 2022

Courtesy of UBS Realty Investors LLC

APAC economic growth outpaced other regions in 2Q22. Inflation is rising but still modest and central banks’ reaction is not as aggressive as their western peers. Cap rates stayed firm but could rise in the next 1‑2 quarters. We still see bright spots in the region that offer good investment opportunities.

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Top 10 With… Interview With Our Infrastructure Experts On Energy Storage

Courtesy of UBS Realty Investors LLC

Utilizing energy storage when renewable energy production is high, and providing that energy back to the grid when renewables are offline, helps in reducing the grid’s carbon emissions, and achieving decarbonization faster. In the following interview, George Manahilov, Co‑Head of Energy Storage, Ken‑Ichi Hino, Portfolio Manager for Energy Storage, and Alex Leung, Infrastructure Analyst, Research & Strategy, discuss why energy storage is considered a critical grid infrastructure, the sector’s role in carbon reduction and what it takes for investors to reap the benefits of this fast‑growing sector.

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Road Transport is an Important Focus for Decarbonisation

Courtesy of First Sentier Investors

Electric vehicles (EVs) appear to be a compelling investment opportunity, but there are many ways to gain exposure to the EV theme. These include investing in lithium producers who power EV batteries, or the vehicle manufacturers themselves. However, we see the ‘E’ in EV as a significant opportunity, where investors can support the EV revolution by investing in the charging infrastructure that underpins the whole sector.

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Recession and the Roadmap for Listed and Private Real Estate

Courtesy of Cohen & Steers

We see an economic backdrop that will create an opportunity for strong vintage returns for both listed and private real estate. Both cyclical and secular shifts are likely to create investment opportunities, and we think allocating across both private and listed real estate will be critical.

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Diversification With Opportunity – European Real Estate from a Swiss Investor’s Perspective

Courtesy of UBS Realty Investors LLC

The European real estate market offers access to an investment universe that is around 10 times larger than in Switzerland, and the opportunity to participate in various megatrends. Due to its low correlation to Switzerland, the European real estate market is ideally suited for diversification as a complement to Swiss real estate. European core real estate has defensive characteristics such as forecasted real rental growth in the coming years, stable returns, inflation protection and a low correlation to other asset classes.

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Q4 2022 Global Macro Outlook – A Difficult Climb Ahead

Courtesy of Manulife Investment Management

Set against a backdrop of slowing growth, elevated inflation, and negative investor sentiment, global markets have spent the past quarter pricing in an increasingly hawkish profile for central bank rate hikes, leading to a sharp spike in volatility across asset classes. We take a closer look at macro trends that are likely to shape the trading environment in the coming months.

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Infrastructure Secondaries in Today’s Market

Courtesy of Pantheon

Today’s macro environment is characterized by record-breaking levels of inflation, central bank policy tightening, and slowing economic growth across developing and advanced economies. This backdrop has had wide-ranging implications for individuals and businesses, as well as financial markets. Amid the continuing macro and rate uncertainty, public markets have become increasingly volatile, with many investors searching for new opportunities and/or grappling with how to reallocate their portfolios.

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An Analysis of Economic Consistency of Class A Renters

Courtesy of White Oak Partners

Historically, rents among core-plus assets have remained strong despite adverse economic conditions. Despite the Global Financial Crisis upending the real estate market, class A apartments only had three-quarters of negative rent growth during the height of the recession. Rent growth in the subsequent recovery was much more pronounced in class A properties than in other asset classes, driven by strong employment numbers among white-collar professions. Read the full report for further analysis.

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Quarterly Insights – Q3 2022

Courtesy of PGIM Real Estate

As most real estate markets are either in or heading for a downturn, all eyes are focused on the capital markets. Afterall, capital markets move first. But that gets everyone thinking each downturn is the same. They’re not. Each downturn is unique in its own way. And that speaks to the opportunity sets that arise in times like these. Sure it's easy to say, "buy the fundamentals" – but which sectors? Over what period? At what price? This quarter, each region addresses these key questions – Asia Pacific, Europe, and United States.

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Infrastructure in Times of Rising Interest Rates: What (Not) to Fear

Courtesy of CBRE Investment Management

This paper analyses the historic performance of listed and unlisted infrastructure assets against interest rates and other macro factors We find that in periods of below-average economic growth and high inflation, infrastructure performs better than general equities due to the defensive, inflation-linked nature of its cash flows. The diversity of infrastructure sub-sectors works to average out the sensitivity of the asset class to macro factors, including to today’s record-high commodity prices. This means that well-diversified portfolios stand a better chance of generating superior risk-adjusted returns.

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Real Estate Outlook – Europe, Edition September 2022

Courtesy of UBS Realty Investors LLC

European real estate faces a tough 2H22, as a necessary re‑pricing adjusts yields to reflect the increase in debt costs and risk‑free rates that have materialized, impacting returns in the short‑term, while creating opportunities in high conviction sectors.

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Europe Real Estate Sector Report – Fall 2022

Courtesy of Principal Real Estate Investors

We are pleased to share our bi-annual real estate sector report for the European market. Featuring cross-quadrant perspectives from our real estate investment professionals, this report provides current conditions and outlooks for core real estate sectors as well as non-traditional sectors such as data centres. This comprehensive paper is designed to help you evaluate real estate investment opportunities on the horizon within this region.

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U.S. Real Estate Sector Report – Fall 2022

Courtesy of Principal Principal Asset Management

We are pleased to share our bi-annual real estate sector report for the U.S. market. Featuring cross-quadrant perspectives from our real estate investment professionals, this report provides current conditions and outlooks for core real estate sectors as well as non-traditional sectors such as data centers. This comprehensive paper is designed to help you evaluate real estate investment opportunities on the horizon within this region.

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Real Estate Outlook – Global, Edition September 2022

Courtesy of UBS Realty Investors LLC

Global real estate performance was strong in the first half of the year, though investment activity eased from a record high in 2021. We expect some rises in yields in the second half as they adjust to higher interest rates and a weaker economic outlook.

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IPM – Our Quarterly Insights Into Private Markets

Courtesy of UBS Realty Investors LLC

Insights into Private Markets (IPM) is our next generation Real Estate Outlook. IPM uncovers key insights across real estate, infrastructure, food & agriculture, private equity and private credit, including niche specialist areas such as life sciences, the global living sector, private equity secondaries, amongst others. This first edition explores the forces currently shaping the private markets space, such as inflation, including the US Inflation Reduction Act, the war in Ukraine, the rise in food and energy prices, and the circumstances in which these factors may or may not work for individual investors.

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US Inflation Reduction Act 2022 – Top 5 Takeaways for Infrastructure

Courtesy of UBS Realty Investors LLC

On 16 August 2022, President Biden signed the Inflation Reduction Act (IRA) into law. The bill contains USD 369 billion of spending targeted towards energy security and climate change. This is the most important clean energy legislation in recent history, and will significantly broaden the investable universe. We expect to see new investment opportunities across renewable energy, standalone energy storage, sustainable fuels, clean transportation, and traditional infrastructure supporting the domestic supply chain.

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How a Rising Mortgage Rate Environment Affects Multifamily Demand

Courtesy of White Oak Partners

Inflation has turned out to be far stickier than many initially thought and soared to a 40-year high in June 2022. To combat inflation, the Federal Reserve raised interest rates, including a 75-basis point rate hike in June—the highest increase since 1994. As a result, mortgage rates have jumped from 3.2% to 5.7% in the first half of 2022. The combination of rising rates, declining purchasing power, and low inventory of for-sale housing is pricing many would-be homebuyers out of the housing market. As a result, families will remain renters for longer, which will drive multifamily performance for the foreseeable future. Multifamily is often viewed as an inflationary hedge due to staggered lease expirations that allow apartment owners/operators to increase rents to offset rising operational costs. In this edition of WOP Insights, we’ll explore the impact that rising rates have on mortgages, the for-sale housing market, and multifamily demand.

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Economic and Commercial Real Estate Outlook: Bracing for Uncertain Times

Courtesy of Principal Real Estate Investors

Major economies worldwide could enter recession in the next 12 months. And while not all recessions have an indelible impact on commercial real estate markets, investors should anticipate some decline in capital values. Where should commercial real estate investors look for opportunity? We view sectors that have better long-term structural drivers as more durable during a downturn, while more cyclical sectors (office, retail, and hotel) will likely see broader declines in fundamentals potentially allowing price discovery and opening investment opportunities that have been generally scarce. In this paper we discuss why we believe there’s an increased probability of recession and the likely impact on property sectors in both Europe and the U.S.

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Listed Infrastructure: A Complementary Allocation in an Institutional Investor’s Portfolio

Courtesy of Principal Real Estate Investors

Many investors have achieved infrastructure exposure exclusively through the private markets, yet the asset class can also be accessed through listed infrastructure equity strategies. Principal believes listed infrastructure has the potential to serve a variety of complementary roles as part of an overall infrastructure allocation, including to complete a portfolio, preserve liquidity, gain immediate exposure, access tactical opportunities, and/or stay on top of trends.

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REIT Industry ESG Report 2022

Courtesy of Nareit

This report of the REIT industry’s environmental, social responsibility, and governance (ESG) performance details the state of sustainability efforts in the publicly traded U.S. REIT industry in 2022. The report and its 30-plus case studies feature REIT leadership and ESG innovation from a variety of sectors and serves as a practical tool for stakeholders to assess the scale and impact of the REIT industry’s ESG commitments and initiatives. For more information, click here.

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Capital Markets Review – 2nd Quarter 2022

Courtesy of RVK, Inc.

RVK is pleased to issue its capital markets review for the 2nd quarter. This issue discusses supply chain disruptions tied to the war in Ukraine and China’s zero-COVID policy, inflation conditions, hedge funds generally providing downside protection compared to public equity markets, etc.

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Raising the Bar for Rebalancing

Courtesy of J.P. Morgan Asset Management

When rebalancing adds value, it is equated with tactical skill; when it loses value, it is excused as strategic discipline. The opportunities for improving this process are apparent, but reconciling long- term investment strategy with short-term market movements is challenging.

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The Investment Outlook for 2022

Courtesy of J.P. Morgan Asset Management

The first half of 2022 has seen the U.S economy buffeted by multiple shocks including the further pandemic waves, significant fiscal drag and the impacts of both China’s “zero-COVID” policy and the Russian invasion of Ukraine.

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Driving the Economy Through the Rear-View Mirror: Concerns Behind Shelter Inflation’s Lag

Courtesy of The Amherst Group

Historic movements in shelter costs over the past two years may have exposed a weakness in the indices used by policymakers to measure inflation. We believe that were a timelier measure of shelter inflation used, recent monetary policy decisions could have been quite different both in timing and magnitude. Amherst explores causes of shelter lag and illustrates how it may lead to a mismatch between the Fed's interest rate hikes and the state of inflation.

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Can Commercial Real Estate Beat the Current High Inflation Environment?

Courtesy of Principal Real Estate Investors

Real estate has historically been viewed as an asset class that offers potential for preservation during periods of high inflation. In these two special reports, we examine evidence to assess how real estate markets in the U.S. have fared with inflation. Investors need to be mindful that not all property sectors, or locations, will offer the same performance or the same potential hedge against inflation benefits. We recommend focusing on a mix of emerging growth and traditional property types in metro areas aligned with long-term structural drivers that include technology and strong demographic growth profiles.

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Insights into REITs in 2022: A Check-In on Year-to-Date Performance and Current Valuations

Courtesy of Principal Real Estate Investors

Listed REITs and financial markets are under pressure from the forces of rising rates, recession fears, and elevated valuations. With the big sell-off investors should take notice the valuation gap between public and private real estate has widened substantially. In this Q&A with Kelly Rush, Chief Investment Officer, Principal Real Estate Securities, we discuss some of these key forces impacting markets, valuation signals in the REIT market, and what are a few of the relative advantages of owning REITs today.

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Life Science R&D – A Deeper Dive

Courtesy of ORG Portfolio Management

Recently life science research and development (“R&D”) has been brought to the forefront of many real estate investors’ minds. The onset of the COVID-19 pandemic brought light to the necessity of advancements and improvements in drugs, medical devices and other biomedical products. As discussed in ORG’s previous Thought Piece published on November 8, 2021, “Life Science Real Estate - Where Money is Moving Fast”, venture capital funding has also accelerated in recent years. 2021 was a record year for venture funding at over $90 billion of funding, which represents approximately a 150% increase in funding from 2018. Additionally, pre-money valuations of biotech companies increased 21% year over year in 2021. This acceleration in funding has fueled more startup life science companies to launch and with more amounts of cash than ever before. With this, life science R&D lab space has become sacred with many of the top markets reaching vacancies of lower than 3%. As a follow up to ORG’s previous Thought Piece on life science, ORG wanted to provide a deep dive on R&D lab real estate.

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Real Estate Outlook – US, Edition 2, 2022

Courtesy of UBS Realty Investors LLC

Growing economic uncertainty based on weaker consumer sentiment and inflation concerns increases the importance of focusing on durable income growth across real estate sectors, metros, and product types. Continued strong industrial and apartment return performance is anticipated, but at a lower margin than 2021, given interest rate pressures. We expect a deteriorating performance for office and a gradual strengthening in retail performance through 2022.

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Groundbreakers, Issue 2

Courtesy of Prologis

Learn about the future of the global supply chain. This issue features: 1) Q&A with Transportation Secretary Pete Buttigieg on Freight Logistics Optimization Works (FLOW), the information-sharing initiative between ports, shippers, carriers, and others in the supply chain ecosystem including FedEx, UPS, Target, and Prologis, 2) Greg O'Brien, JLL CEO of Markets, reveals the secret weapon helping leaders navigate hybrid work, employee wellness and even sustainability, and 3) Maria Flynn, CEO of Jobs for the Future (JFF), shares how employers can use the last two years of transformation to inform their approach to workforces of tomorrow.

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Real Estate Market Sentiment Dips into Recessionary Zone Amid Economic Uncertainty

COURTESY OF RCLCO Real Estate Consulting

RCLCO’s Real Estate Market Sentiment Survey has tracked confidence in U.S. real estate market conditions for over 10 years. The last two years have been unprecedented in many ways – resulting in more significant swings in sentiment (both positive and negative) than we have seen since the survey inception. Read in detail how economic uncertainty has caused the index to drop into a recessionary zone in mid-2022, including RCLCO’s point of view on current economic conditions and future outlook.

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Real Estate Outlook – Global Overview – Edition 2, 2022

Courtesy of UBS Realty Investors LLC

Global real estate performance remained strong in the first quarter. Investment activity pulled back slightly from the record high at the end of 2021 and the pace of cap rate and yield compression eased. The war in Ukraine is curbing economic growth, boosting inflation and is expected to have a cooling impact on real estate returns.

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The Decisive Eye – Summer 2022

Courtesy of Principal Real Estate Investors

Among the various investment options that have risen to the top from an inflation hedging perspective are real assets, particularly commercial property. In this issue, Principal investigates the relationship between property performance and inflation in Europe to identify any discernible takeaways for investors.

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Passing Effect or Lasting Change? Swiss Real Estate in an Inflationary Environment

Courtesy of UBS Realty Investors LLC

After decades of continuous low inflation levels, real estate investors are experiencing an environment of elevated consumer price growth all around the world. In this publication, we underline our inflation and interest rate expectations and discuss the potential implications of this complex macroeconomic environment for the performance of Swiss real estate investments.

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Industrial Real Estate is a “DIGITAL” Poster Child

Courtesy of Principal Real Estate Investors

The era of hyper-globalization has ended and there is a need for new and varied industrial stock. Strong market fundamentals for warehouse space have translated into outsized investor demand. The long-term demand drivers continue to make the industrial sector attractive—we are focusing on shorter-term development and merchant-build facilities in DIGITAL markets.

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Multifamily Outlook Report

COURTESY OF Walker & Dunlop

As a historically strong multifamily market meets economic headwinds and geopolitical unrest, what does it all mean for you? We’ve been tracking the landscape and trends. You’ll find our latest insights—along with proprietary research—in our new Multifamily Outlook Report

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Real Estate Outlook – Edition 2, 2022

Courtesy of UBS Realty Investors LLC

Global real estate performance remained strong in the first quarter. Investment activity pulled back slightly from the record high at the end of 2021 and the pace of cap rate and yield compression eased. The war in Ukraine is curbing economic growth, boosting inflation and is expected to have a cooling impact on real estate returns.

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Infrastructure Strategy 2022: A Pivot to the Digital Frontier

COURTESY OF Boston Consulting Group & EDHECinfra

In 2022, global assets under management for infrastructure investments will reach a record high of $950 billion. And as the number of infrastructure investors increases, strategic questions grow in importance. How should investors select their exposures to different segments of the infrastructure universe? What risks and returns can they expect, and what strategic choices can they make to develop their portfolios? What has been the experience of different investment peer groups so far? For investors, has the direct investment model delivered as well as accessing infrastructure investments via fund managers has? This report is the first in a series of annual publications by BCG and EDHECinfra exploring the state of infrastructure investment globally. “Infrastructure Strategy 2022” provides a new perspective on the investment styles and risk-adjusted performance of different groups of infrastructure investors. It also includes a spotlight on an investment theme expected to continue to play an increasingly significant role in the strategies of infrastructure investors: data infrastructure.

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The Affordable Housing Asset Class

COURTESY OF RCLCO Real Estate Consulting

RCLCO has released its updated affordable housing report. The report provides a basic characterization of the current stock of affordable housing, quantifies the performance of the asset class and highlights the nature of the asset class’ advantages, and takes a forward look at the robustness of future demand, reflecting both the fundamental need for increased supply and the long-term attractiveness of investment.

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Student Housing: An Attractive Alternative to Multifamily

COURTESY OF ORG PORTFOLIO MANAGEMENT

Student housing has been growing in interest from institutional investors as an attractive alternative to increase diversification in multifamily portfolios. The ORG Research Team analyzes the student housing sector and how it compares to market-rate traditional multifamily.

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Inflation: considerations for real assets

COURTESY OF IFM Investors

Inflation concerns have been front and centre in conversation for global investors and consumers alike in recent months. Since the beginning of the pandemic, supply-side constraints in the face of strong demand have created disequilibrium, driving inflation higher, and now the conflict in Eastern Europe will likely exacerbate that risk by boosting commodity prices further. Such a spike in inflation in advanced economies has not been experienced for decades and there is uncertainty as to how and when it will be resolved. For asset owners such as IFM Investors this adds a further challenge of navigating the maze of regional and global inflationary pressures confronting them daily. This paper explores the inflationary pressures we face today, the outlook for those pressures and what it means for asset owners, such as IFM.

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Getting Ahead – Private Equity Secondaries Investing

Courtesy of UBS Realty Investors LLC

Private equity secondaries has evolved from a relatively small, somewhat obscure niche into an integrated part of the overall private equity ecosystem. Secondary strategies can offer significant diversification across managers, industries, geographies, strategies, and vintage years. But what exactly are secondaries? How does this sub-asset class consistently outperform the public markets and offer low volatility? And how can its allocation enhance a portfolio?

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Real Estate Outlook – Switzerland, Edition 1H22

Courtesy of UBS Realty Investors LLC

Investor demand for Swiss property remains strong despite the uncertain macroeconomic environment. We expect the future increase of the Swiss interest rate environment to be gradual. Swiss property investments are likely to remain an attractive alternative to a still low yielding bond market.

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Development Offers Outsized Opportunities in the U.S. Housing Market

Courtesy of Principal Real Estate Investors

The U.S. housing market is poised for a substantial uptick in demand as the demographic shape of society intersects with COVID-19 induced shifts. Markets with lower costs of living, higher educated workforces, and exposure to some of the DIGITAL drivers are poised for strong household formation and housing demand. We believe development strategies may offer investors an attractive, risk-adjusted opportunity to harness the potential in this sector and not only provide the potential for excess returns, but also tailored solutions to meet the expanding breadth of evolving ESG and tenant needs.

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Same, but Different – The Evolution and Growth of Infrastructure Debt

Courtesy of UBS Realty Investors LLC

The infrastructure debt market has continued to evolve and grow since its inception as an institutional asset class a decade ago. Its attractive features remain the same while continuing to show resilience throughout times of economic stress, including during the COVID-19 crisis. Infrastructure debt has shown time and time again that it can deliver a sustained yield-pick up at a time of record-low returns in public fixed income.

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At a Tipping Point: Supercharging Decarbonization with Energy Storage

Courtesy of UBS Realty Investors LLC

Renewable energy from wind and solar may be clean and cheap, but they are also intermittent and unpredictable. Traditionally, thermal generation such as coal, gas or nuclear are used to offset the limitations of renewables, especially during hours that are not windy or sunny. However, energy storage has finally become an economic and sustainable alternative to thermal generation.

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Real Estate Outlook – Edition 1, 2022

Courtesy of UBS Realty Investors LLC

The economic recovery continues, albeit interrupted by Omicron, and the war in Ukraine poses a new risk. Global real estate volumes reached a record high, driven by domestic buyers. Falls in office and retail yields were more widespread. We think that any headwinds from interest rate rises will be offset by growth in the economy.

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Sizing Up Office-to-Logistics Conversions

Courtesy of Prologis

With the office sector facing uncertainty due to WFH policies, could converting office properties help meet the insatiable demand for warehousing and distribution facilities? Prologis, the global leader in logistics real estate, takes a deep dive into the market opportunity.

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February 2022: Real Estate Sector Report

Courtesy of Principal Real Estate Investors

We are pleased to share our bi-annual real estate sector report. This piece includes insights from investment professionals across all four real estate quadrants. It provides current conditions and outlooks for all of the core real estate sectors, as well as non-traditional sectors such as data centers and life sciences. Easily scan for the current conditions and outlook of a sector using the infographics within the report, as well as read quick overviews of ratings, supply and demand, capital values, and more. This comprehensive report is designed to help you evaluate real estate investment opportunities on the horizon.

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Essential Housing

Courtesy of AEW

Mike Acton, AEW's Head of Research, touched upon Essential Housing as one of the niche opportunity sets during our webinar. As a follow-up to this interactive discussion, we would like to share with you his recent white paper on this timely and vital topic. In this piece, Mike Acton takes a close look at the importance of meeting the intrinsic demand of essential housing within the multifamily sector. Here, he discusses the realities of the structural supply and demand imbalance for this type of housing and the reasons why the stock of rental properties that are affordable to low and moderate income households never grows.

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Alternative Farming – A Need for the Future

Courtesy of ORG Portfolio Management

Traditional farming has been essential to supplying food for generations of human history. However, alternative farming methods have emerged as the world’s population grows and technology advances. Alternative farming is a systematic approach to farming intended to reduce agricultural pollution, enhance sustainability and improve efficiency and profitability. Two key methods of alternative farming are vertical farms and greenhouses. These two methods have the potential to provide a solution to the future demand for food production and interesting investment opportunities. Vertical farms and greenhouses are able to provide a significantly higher annual yield per square foot, while consuming less water and incorporating more sustainable farming methods than traditional farming.
 

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Logistics Real Estate: Highest Demand, Fastest Rent Growth in History

Courtesy of Prologis

The Prologis Logistics Rent Index examines trends in net effective market rental growth and combines the company’s local insights on market pricing dynamics with data from our global portfolio. In this February 2022 edition, Prologis found that despite inflation concerns, consumers are still shopping, and intense competition for warehouses is pushing rents higher than ever. Prologis also found rents for industrial real estate increased by a record 15.4% worldwide in 2021. Click the report to learn more insights.

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2022 Market Commentary: Ten Takes on a Topsy-Turvy World

Courtesy of Hodes Weill & Associates

This is the 12th year that Hodes Weill is presenting its annual Market Commentary. We ask our 34 global professionals to reflect on both dominant and overlooked trends affecting real estate and real asset investment management. We challenge ourselves to question “conventional wisdom.” This year, dynamic views on ESG, nascent and traditional property sectors, and industry trends were on our minds.

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2022 Market Outlook

Courtesy of The Amherst Group

Amherst uses its proprietary data and analytics to explore how increased inflation, the end of the Federal Reserve’s pandemic-era monetary policy, and pandemic-driven demand for larger homes is impacting the real estate sector. Based on these findings, Amherst expects to see: limited single-family home supply spurring increased prices, demographic trends drive single-family rental demand, mixed commercial real estate recovery, and opportunities in securitized MBS products and transitional CRE loans.

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Real Estate Investment Strategy Quarterly – Our Outlook and Forecasts for 2022

Courtesy of MetLife Investment Management

With inflation being potentially being less transitory than thought a few quarters ago, we evaluated which commercial real estate property types may be the best suited as a hedge against it. Bigger picture, we believe the difference in relative value between markets has increased, with pricing in some market and property type combinations raising caution flags in recent months. Nonetheless, we believe real estate pricing outside of these areas remains favorable. Looking forward, inflation, government responses to Covid-19 variants, labor force participation, and supply chain issues will be our areas of focus in 2022. This report provides our views on these items as well as updated forecasts for commercial real estate performance in 2022.

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2022 House View, North American Property Market Outlook

Courtesy of USAA Real Estate

This publication is produced each year and serves two essential purposes. First, it highlights our outlook for the U.S. economy and the commercial real estate (CRE) sector, as well as significant trends and opportunities. Secondly, it reasserts our investment stance before providing a forward-looking framework regarding our investment themes and strategies.

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2022 House View, European Property Market Outlook

Courtesy of USAA Real Estate

This publication is produced annually and serves two essential purposes. First, it highlights our outlook for the economy, the capital markets and the commercial real estate (CRE) sector. Secondly, it provides a forward-looking framework regarding our investment themes and strategies.

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Life Science Real Estate – Where Money is Moving Fast

Courtesy of ORG Portfolio Management

In the last few years, emphasis has grown on life science both as an industry and a real estate sector. The onset of COVID-19 accelerated the focus on life science and has been followed by incredible growth in investor demand. With the increasing attention and demand, ORG wanted to provide research and analysis to fully understand what life science is and the role real estate plays in the industry.

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2022 U.S. Real Estate Outlook

Courtesy of Virtus Real Estate Capital

Like many of you, we welcome the arrival of 2022.  But, despite the euphoric backdrop of most asset classes, pervasive headlines surrounding market volatility and risk continue to dominate investor sentiment.  Facing the mounting challenges of inflation, fiscal health, and a disjointed labor market, we collectively press pause and ponder if 2022 will seemingly be “2020-too?”  We aim to address this very question at a macro-level and provide asset-class-specific views in our 2022 U.S. Real Estate Outlook.

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The Fourth Utility – Delivering the Future

Courtesy of Actis

Actis' latest The Street View publication, The Fourth Utility – Delivering the Future, gives an insight into the scale of the digital infrastructure opportunity through 10 articles and podcasts, authored by Actis and industry experts. Find out what it takes to successfully invest in sustainable infrastructure globally, drawing on multiple skill sets and decades of experience, with a core commitment to sustainability.

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Top 10 real estate questions for 2022

Courtesy of UBS Realty Investors LLC

Our research team gives answers to some of the key questions that real estate investors face, including: the evolution of prop tech and where we expect to see falls in values in office markets; whether the retail sector is finally bottoming and if the pandemic-ravaged hotel sector now presents some opportunities; if logistics will run out of steam and what impact sharp rises in construction costs have had on development margins; how real estate sits versus other asset classes and what strategies investors can follow should the outbreak of inflation prove asymmetric between countries.

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How to Fix Today’s Supply Chain Disruptions

Courtesy of Elion Partners

During the Future of Logistics & Retail virtual conference, Juan DeAngulo, Managing Partner at Elion, examined how technology, sustainability and emerging trends are reshaping demand and design for logistics real estate. As a follow-up to this interactive discussion, we would like to share with you Elion’s white paper on this timely and vital topic. “How to Fix Today’s Supply Chain Disruptions” examines the inefficiencies in the global supply chain and offers solutions for several fundamental issues including infrastructure upgrades, delivery and technology innovations, and onshoring.

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The Current State of Disruptive Construction Technologies

Courtesy of Virtus Real Estate Capital

Construction technology has been relatively stagnant for many decades compared to other, equally crucial sectors. This is true even at the “leading edge” of innovation, where modular technologies have promised to cut both project costs and timelines substantially, but they have yet to reach scale after decades of existence. However, the current moment shows evidence for both progress in existing approaches, as well as increasing diversity of nascent strategies for “industrializing” the production of buildings. These trends are accompanied by a parallel “prop-tech” revolution that promises to make all aspects of commercial real estate more efficient and exacting. Finally, the rising costs and regulations on conventional construction make the risks of innovation increasingly attractive. In this white paper, we make sense of this evolving landscape, tracing the current state of “new best practice” and the most likely trajectory future construction will take as both new technologies and business organizations form.

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Real Estate Outlook: EUR, Edition 4, 2021

Courtesy of UBS Realty Investors LLC

With inflation back with a vengeance and central banks set to raise rates over the next 12 months, investors can no longer depend on the buy and hold model to deliver strong returns. Capex and sustainability requirements are going to weigh ever more heavily on NOI, but with property yields at ultra-low levels there is little buffer should a downside scenario play out. The asset class can still deliver strong returns, but managers will need to work harder to create genuine value from their real estate investments.

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Real Estate Outlook: US, Edition 4, 2021

Courtesy of UBS Realty Investors LLC

US GDP has exceeded pre-pandemic levels, although cooling somewhat during third quarter. Continued healthy growth is anticipated into the new year. The apartment and industrial sectors continue to outperform and the retail sector is on the mend. However, office sector performance is causing concern.

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Real Estate Outlook: APAC, Edition 4, 2021

Courtesy of UBS Realty Investors LLC

APAC economies slowed in the third quarter. Apart from China, countries are now looking to contain COVID-19 rather than eradicate it. In office markets occupiers are adjusting to hybrid working arrangements, retail markets showed some signs of stabilization, while industrial and logistics showed rental growth across the region. Investment markets were strong, with yields mostly flat or falling.

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Why real estate investors can no longer overlook Canada

Courtesy of Manulife Investment Management

Manulife Investment Management believes for institutional investors with growing allocations to real estate, Canada’s growth prospects and disciplined investment markets may provide an opportunity for diversification and consistent, stable returns.

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Panorama: Investing in 2022

Courtesy of UBS Realty Investors LLC

Some real assets are already playing a role in addressing investors’ ESG concerns, so will the initiatives underway be an important value driver when thinking about the valuation and performance of real asset portfolios? Read what Darren Rabenou, Head of ESG Investment Strategies and Head of Food & Agriculture has to say in the latest edition of Panorama: Investing in 2022. This edition explores what building a more sustainable future means for investors, along with the persisting global supply chain and inflation challenges.

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Looking Ahead: Infrastructure Outlook for 2022

Courtesy of UBS Realty Investors LLC

The infrastructure sector continues to be resilient with robust performance across debt and equity. The sub-sectors worst hit by the pandemic are showing green shoots, recovering in line with the macro environment. We see some challenges to the economy around supply chain disruptions, inflation and rising infections. At the same time, we also see strengthening market and policy tailwinds around decarbonization and digitalization, which support performance and investment volumes.

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Real Estate Outlook: Global, Edition 4, 2021

Courtesy of UBS Realty Investors LLC

The economy slowed in the third quarter while inflation is proving higher and more persistent than originally expected. Real estate markets were strong, with global transaction activity back to pre-pandemic levels and falls in yields and cap rates reported across sectors. The industrial sector continues to outperform. The economy slowed in the third quarter while inflation is proving higher and more persistent than originally expected. Real estate markets were strong, with global transaction activity back to pre-pandemic levels and falls in yields and cap rates reported across sectors. The industrial sector continues to outperform.

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Understanding the Merits of Open-Ended Credit Fund Structures

Courtesy of Trawler Capital Management

While the institutional CRE LP universe finds comfort in historical familiarity with equity investment through closed-ended structures, the use of open-ended fund structures for credit investment can provide important benefits to LPs that are not readily obtainable in typical closed-end vehicles. This white paper focuses on such benefits and issues central to the alignment of interest between LPs and GPs thus driving optimal performance.

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The Future of Defined Contribution

Courtesy of Nuveen Real Estate

In this edition of next, we revisit our real estate allocation recommendations while examining how the sector fared during 2020 market volatility. We also analyze how plan sponsors can apply financial psychology and brand bias awareness training to their selection process. Next, we dive into the key provisions of the Securing Strong Retirement Act of 2021 (nicknamed SECURE Act 2.0) that is currently working its way through Congress. Finally, we evaluate the rapidly growing managed accounts within plans to see what benefits customization could bring to participants.

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Evolving Landscape for Liquidity within DC Plans

Courtesy of Defined Contribution Real Estate Council

Conventional wisdom within the Defined Contribution (DC) industry has held that DC plans must provide only investment options with daily liquidity. This paper will explore how an exclusive reliance on daily liquidity in DC investment options may be evolving alongside the changing DC environment. We will also consider how some types of assets with lower levels of liquidity have developed in ways that could potentially help meet the need for greater levels of diversification within DC plans.

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Placemaking: Seeking a Premium through Live-Work-Play

Courtesy of Hines

Over the past decade, the real estate industry has reimagined the way buildings and developments contribute to and enrich communities by creating a vibrant sense of place. The latest Hines Global Perspective Thought Paper examines the experiential transformation underway to meet the evolving needs of modern residents, office tenants and visitors. In today’s quickly changing world, the strength of placemaking is its ability to adapt to meet the changing needs of people.

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The Profile of Single-Family Renters and the Barriers to Homeownership that Got Them Here

Courtesy of The Amherst Group

In the wake of the Great Recession, the implosion of bank balance sheets and tightened credit policy that followed took down not only the economy but also, for many households, the prospect of owning a single-family home and achieving the lifestyle that comes with it. Although tightening credit boxes and more stringent underwriting standards are typical in post-recessionary mortgage markets, the extent to which credit has been restricted and the duration to which lack of access has persisted is vastly under-appreciated. A decade has elapsed since the Great Recession, yet tight credit access and a dearth of home construction —especially at affordable, entry-level price points—continues to exclude many families from homeownership. The institutional single-family rental (SFR) industry has sprung up to help fill this gap and provide hundreds of thousands of American families with access to the space, lifestyle, and location that they otherwise would not be able to access. Without a scaled SFR industry, the prospect of raising a family in a single-family home would remain out of grasp.

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Inside Real Estate: Annual Strategy Outlook for 2022

Courtesy of Principal Real Estate Investors

The real estate investment universe has emerged from the COVID-19 pandemic altered by a shift in human behavior. In the past two years we have changed the way we work, live, and play, which will affect how we think about and use commercial real estate going forward. The “DIGITAL” themes – Demographics, Innovation, Globalization, Infrastructure, And Technology – which we first highlighted in our annual strategy outlook for 2019 as future drivers of investment performance, have become more prevalent, heightened by the pandemic. In many ways, the commercial real estate market has been thrust into the future, which has presented a rapidly broadening opportunity set that spans well beyond the traditional property sectors. We believe those investors able to identify and step into this brave new world will find themselves at the forefront of growth and outperformance in commercial real estate in 2022.

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Housing Appreciation Seasonally Decelerates, While Rent Growth Continues to Climb, October 2021

Courtesy of The Amherst Group

The school year kicks off with robust housing price appreciation and more record-setting rent growth. Amherst’s Home Price Appreciation (HPA) Index shows prices continue to grow year-over-year (YoY) at a near-record, albeit slowing pace. This trend is consistent with the autumn growth patterns of prior years. In the for-lease market, the Amherst Rent Growth Index shows rent growth is steadfast in its upward summer trajectory as it reached yet another YoY record in September.

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Post-pandemic outlook for European real estate, November 2021

Courtesy of UBS Realty Investors LLC

At the start of the COVID-19 outbreak, the idea that core European real estate pricing would in many markets be higher in 18 months' time would have been almost unthinkable. But with governments pumping liquidity into the financial system, economies rapidly recovering and interest rates stable at record low levels, that is the situation we find ourselves in. This paper explores whether real estate pricing is getting too hot in some sectors, and where we still see opportunities in a highly competitive investment market.

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Urban Industrial in Europe: Lower risks, higher returns, November 2021

Marek Handzel, editor of Institutional Real Estate Europe

Urban logistics assets are generally utilised to provide the “last-mile” fulfillment for ecommerce operators. They have risen in importance due to ever-shortening delivery time expectations, as well as various new entrants to the market, such as grocery retailers. In addition to ecommerce, smaller-format units are generally favoured by traditional industrial operators as well. This has already translated into much higher rental growth for urban logistics when compared with their big-box peers. Data produced by Property Markets Analysis, shows that urban logistics rents were almost 40 percent higher in 2020 than they were in 2007 — while other logistics rents have not progressed much over the past decade.

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ESG in infrastructure, October 2021

Courtesy of UBS Realty Investors LLC

ESG has moved from being a nice-to-have, to being an important part of infrastructure investing and can be used to drive action and outcomes. Today, the options for institutional investors to gain exposure to ESG have never been greater, with public markets seeing net new money into sustainable investment funds increase. In the following interview, Bronte Somes, Head of Infrastructure Equity Europe and Declan O’Brien, Head of Infrastructure Research & Strategy discuss ESG’s impact on infrastructure investing.

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The Decisive Eye, Autumn 2021

Courtesy of Principal Real Estate Investors

The DIGITAL (Demographics, Innovation, Globalisation, Infrastructure, Technology, Active over the Long-term) trends that have so profoundly impacted the U.S. and listed real estate markets are starting to exert their influence on Europe.

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Inflation & Real Assets, Navigating an Inflationary Environment with Real Assets

Courtesy of BlackRock

Real asset investors have been increasingly focused on inflation. In this paper, BlackRock discusses their views on inflation, whether it is transitory and where it will go. More importantly, BlackRock discusses the reasons why real assets may perform well in periods of higher inflation, and tools and strategies real assets investors should deploy in a higher inflationary environment.

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U.S. real estate can offer investors a balanced blend of benefits

Courtesy of Manulife Investment Management

In a world searching for yield opportunities, we believe that more investors are coming to appreciate the balanced mix of favorable characteristics that U.S. real estate can add to a diversified investment portfolio. In addition to sustainable income, the world’s largest commercial real estate market may also offer investors an attractive combination of resiliency and value.

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USAA Real Estate – Research Update, October 2021

Courtesy of USAA Real Estate

Since the onset of COVID-19, we have provided timely updates on the pandemic; however, given the strong progress of the U.S. vaccination program, many investors are now turning their attention to the future and focusing on a resumption of business as usual. While the markets will likely remain dynamic in their evolution around the pandemic, the following includes several of the issues we have contemplated recently that relate to the path ahead.

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Real Estate Outlook: APAC, Edition 3, 2021

Courtesy of UBS Realty Investors LLC

While the stuttering pandemic situation will weigh on near-term growth, the outlook for real estate in APAC is more sanguine. Demand for commercial real estate is expected to reverse into positive territory across most markets by the end of 2021. Investment activity in the logistics segment will be partly driven by the availability of quality stock. Investors could benefit from increased exposure to emerging segments.

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U.S.: Investing in the MiMis (Millennials & Middle Income Households)

Courtesy of Nuveen Real Estate

In 2019, we studied the income segments for renter households to ascertain the demographic driver for the multifamily industry. Since then, the country has endured an unexpected recession caused by a global pandemic, which has disrupted the economy but ultimately reinforced underlying trends. Despite recent market turbulence, this update to the original analysis continues to demonstrate that MiMis, or millennials and middle income households, will sustain demand for U.S. apartments in the coming decade. We define middle income households as those earning between 80% and 120% of area median income which is typically those earning between $45,000 and $75,000 per annum. These households comprise between 15% and 25% of each age cohort. Middle income households often have to rent out of necessity which creates consistent demand for apartments targeting middle income renters.

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Nuveen – Managing risk amid uncertainty with commercial real estate debt

Courtesy of Nuveen Real Estate

As the commercial real estate (CRE) sector enters a second year of the global pandemic, it’s no surprise investor surveys report a continued interest in CRE debt vehicles. Not a single investor wanted to reduce their exposure to debt according to the 2020 INREV/ANREV/PREA survey covering CRE debt vehicles. It also reported that more investors were spreading their exposure by using a combination of debt funds across North America, Europe and Asia Pacific. In a marketplace where managing risk has become increasingly important, that makes perfect sense. With uncertainty over the economic outlook remaining high, the appeal of private commercial real estate debt should continue to increase as investors pivot to investments that offer reliable cash flows and downside risk protection.

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The Pandemic Pitfall: Short-Term Forecasts Could Drive Mispricing in U.S. Office

Courtesy of MetLife Investment Management

In MIM’s prior report on the office sector, Back to Work: Office Demand in a Post-Pandemic World, they outlined their macro-level view of the potential impacts of COVID-19 on the office sector. Specifically, they outlined why they believe remote working will reduce office demand through 2021, but should have a limited long-term impact as many companies could reverse their remote workforce decisions in 2022 and beyond. With that premise – near term demand headwinds and a long-term reversion to growth – The Pandemic Pitfall outlines the markets that we think could offer attractively priced office properties that are experiencing temporary disruption. The report includes what we believe are the most relevant indicators of short and long term office demand today, some of which are intuitive, and some of which are not.

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Real Estate Outlook: Europe, Edition 3, 2021

Courtesy of UBS Realty Investors LLC

Economic recovery is well underway in Europe, although the Delta variant dampens some of the promise from the first half of the year. Investor sentiment is more resilient than the underlying occupier markets, but is heavily targeted towards the “beds, sheds and meds” sectors. We continue to expect stronger returns away from the most crowded part of the market, or through development targeting markets and sectors with the strongest occupational dynamics.

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Real Estate Outlook: Global, Edition 3, 2021

Courtesy of UBS Realty Investors LLC

Strong economic recovery, but Delta variant poses a threat. Office and retail sectors continue to have hardships, but more dynamic sub-segments have upside surprise factors. Post-pandemic pent-up demand is supporting the multifamily sector. Logistics continues to outpace expectations and is expected to have staying power.

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Principal – DIGITAL Employment Report August 2021

Courtesy of Principal Real Estate Investors

Employment rose during the second quarter of 2021 in 45 of the 48 real estate markets Principal tracks. Our “DIGITAL” sum of markets – those with key long-term growth drivers centered around DIGITAL (Demographics, Innovation, Globalization, Infrastructure, And Technology) – exceeded the national average during the past quarter. We still anticipate that many markets will fully rebound by 2023, with “DIGITAL” markets recovering quicker.

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The Future of Office: From Uncertainty to Opportunity

Courtesy of Barings Real Estate

Ryan Ma, CFA and Managing Director on Barings' real estate team, discusses three drivers that will shape office demand in the recovery ahead—the transition to a hybrid workplace, employment growth in STEM and creative industries, and the escalating war for talent—and sheds light on how a bifurcated future may offer opportunities for outperformance.

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Real Estate Alternatives: Changing the Role of Real Estate within an Institutional Portfolio

Courtesy of Nuveen Real Estate

During the next decade, we believe institutional real estate portfolios will transform as investors gain more familiarity with the alternative property types and start increasing their allocations to them. Before the alternative property types become a part and parcel component of institutional real estate portfolios, investors should consider adding the alternative real estate property types to their portfolios as a way to drive potential outperformance and to generate enhanced returns.

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Prologis – Logistics Real Estate: The Forces Governing Supply

Courtesy of Prologis

Our last paper explored the structural trends driving demand for prime logistics space. Given that demand will remain strong in the foreseeable future, our focus now turns to the implications for new supply. The transformation of logistics real estate development has followed a compelling trajectory. Clear insight into the structural forces that shape supply trends allows customers to better navigate scarcity and prepare for demand-side shifts.

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Principal – COVID-19 flight: No great migration but a catalyst to existing trends

Courtesy of Principal Real Estate Investors

The COVID-19 pandemic has uniquely affected workers as it forced millions into remote roles for the first time. Yet, despite the rise of telecommuting and advancements in digital communication over the past two decades, migration trends across the nation have actually been in decline after peaking in the 1980’s. We wonder: Has the COVID-19 pandemic reversed this secular trend or will it be a temporary black swan event?

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Prologis – Forever Altered: The Future of Logistics Real Estate Demand

Courtesy of Prologis

The global pandemic has forever altered the logistics real estate landscape: supply chain decisions have become more holistic, more data-driven and more urgent than ever. Underlying this shift are the same forces—urbanization, digitalization and demographics—that have changed the way we live, work and shop.This report aims to separate the transitory nature of human and company behavior during the pandemic from the real lasting forces that will continue to drive the supply chains of the future.

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The Benefits of Direct Real Estate in an Inflationary Environment, July 2021

Courtesy of USAA Real Estate

Our research indicates that real estate exposure has historically provided an effective hedge against inflation. In contrast, other traditional long-only investments such as stocks, nominal bonds, and even listed REITs tend to be negatively impacted during inflationary environments. Further, direct real estate exposure provides a strong total return profile relative to other alternative investments.

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U.S. Migration During a Pandemic: Moving Data Suggests Largest Impacts were within MSAs in 2020, June 2021

Courtesy of USAA Real Estate

Quantifies the impact on the pandemic in shifting movement within markets, as suburban areas benefitted from increased urban outflows in 2020. We expect this activity to revert closer to pre-pandemic levels as the economy reopens, and continue to monitor these trends closely. This piece also suggests that net migration across markets in 2020 was largely consistent with pre-pandemic trends, and headlines suggesting otherwise were often misleading.

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Construction Materials Shortages: Delayed Deliveries and Accelerating Rent Growth, June 2021

Courtesy of USAA Real Estate

Ongoing disruption is driving a shortage of raw building materials, resulting in increased input prices and extended lead times. Materials shortages are already resulting in development cost increases and project delays in the industrial sector. With the backdrop of surging demand for industrial space, the white paper evaluates concerns that construction material shortages could tap the brakes on construction activity. Competition for modern, well-located facilities combined with increased construction costs, suggests rents will continue to accelerate.

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Tackling the Shortage of Affordable Housing in California

Courtesy of Mosser Capital, LLC

This comprehensive white paper analyzes the current affordable housing shortage in the United States which focuses in on specific affordable housing dynamics in the California market. This overview highlights the lack of equity in affordable housing today and discusses the supply and demand dynamics that directly impact low income and diverse households. Mosser outlines several underlying causes for the affordable housing crises as well as provides solutions that can increase the level of equity in affordable housing going forward.

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UBS – Green News & Views: What’s the ESG in private equity?

Courtesy of UBS Realty Investors LLC

Over the last few years, the private equity industry has radically reassessed the importance and value of ESG to their businesses. ESG has shifted from being considered an area of just compliance, to an overarching framework that informs the strategic thinking of many private equity firms - creating value and giving firms a competitive edge. In this edition of Green News & Views, we explore how our Multi-Managers Private Equity business has integrated ESG throughout the entire investment lifecycle from sourcing, investment due diligence, to the ongoing monitoring and reporting on investments.

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The Red-Hot Housing Market Will Not Cool Down Overnight

Courtesy of The Amherst Group

In this report, we take a look at the current state of the U.S. housing market, specifically digging into the details of the growing imbalances in for-sale and for-lease inventory and what we expect to see in the coming years. While this is not a new story, the current disparities between supply and demand in both for-sale and for-lease markets have reached record highs. Some factors contributing to the acceleration of demand for single-family homes (like the pandemic) may go away, but even if supply increases and demand stabilizes tomorrow it may take 1-2 years to normalize inventory to 2018-19 levels. We expect the effects of these supply-demand imbalances will persist and only gradually reverse over time. It may be several quarters before we see more normal rates of growth in home prices and rents.

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Principal – The Fed shows its talons

Courtesy of Principal Real Estate Investors

At its meeting last week, the Federal Open Market Committee (FOMC) changed the Federal Reserve's forecast "dot plot" of short-term interest rate expectations, increasing the median forecast to two rate hikes in 2023 versus none in the last March meeting. Read about some implications for commercial real estate.

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UBS – Real Estate Outlook: Europe, Edition 2, 2021

Courtesy of UBS Realty Investors LLC

After a tough start to the year there are some causes for optimism for the European economy and real estate markets. The vaccine rollout is finally gathering steam, giving hope that some degree of normalization can be achieved in the second half of the year. Capital markets remain healthy, although in-demand sectors and assets are seeing heavy price inflation. Sourcing value will be a key challenge for the rest of 2021.

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UBS – Real Estate Outlook: US, Edition 2, 2021

Courtesy of UBS Realty Investors LLC

As summer approaches, we expect the US will make progress in the slow process of reopening. With that renewal, markets are starting to move again as well. By autumn, real estate investors should gain insight from increasing comparable leases and sales.

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UBS – Real Estate Outlook: Global, Edition 2, 2021

Courtesy of UBS Realty Investors LLC

Global real estate markets are still coming to terms with the economic fallout from the pandemic, but showed a strong performance in the first quarter, driven by the industrial sector. In Europe, the vaccine rollout is finally gathering steam, giving hope that some degree of normalization can be achieved in the second half of the year. In the US, markets are all starting to move, and investors should gain insight from increasing comparable leases and sales. While in APAC, growth prospects have been largely based on the resumption of global demand.

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Life Sciences Real Estate: Opportunity in the Midst of a Pandemic

Courtesy of Clarion Partners

Clarion Partners Head of Investment Research Tim Wang, Ph.D., examines purpose-built life sciences real estate (lab office), why it has been an outperforming alternative property sector, and how it is creating more prosperous U.S. cities. From demographic trends to exponential growth in healthcare spending and surging research funding, demand drivers continue to lead to robust occupancy and rent growth trends. Learn more about these and other factors influencing this shining light within commercial real estate, as well as several hot life sciences clusters to watch.

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Prologis – Forever Altered: The Future of Logistics Real Estate Demand

Courtesy of Prologis

The global pandemic has forever altered the logistics real estate landscape: supply chain decisions have become more holistic, more data-driven and more urgent than ever. Underlying this shift are the same forces -- urbanization, digitalization and demographics -- that have changed the way we live, work and shop. This report aims to separate the transitory nature of human and company behavior during the pandemic from the real lasting forces that will continue to drive the supply chains of the future.

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UBS – Top 5 factors, Integrating ESG in indirect infrastructure investment

Courtesy of UBS Realty Investors LLC

Sustainable infrastructure investments play a driving role in decarbonization, improving livelihoods and economies. For infrastructure investors, factoring in financially relevant sustainability information can lead to better investment decisions. Multi-Manager Infrastructure have outlined their top 5 factors to consider when integrating ESG in the investment process. Through integrating these 5 factors, the business can promote sustainable long-term growth which can benefit companies, investors and creates greater impact in the industry at large.

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UBS – Real Estate Outlook: US, Edition 1, 2021

Courtesy of UBS Realty Investors LLC

Increased transaction activity late last year reflects pent-up investor demand for real estate assets, with a clear preference for industrial and apartments as 2021 begins. We expect retail and office to continue to face headwinds even as the economy improves.

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UBS – Real Estate Outlook: Europe, Edition 1, 2021

Courtesy of UBS Realty Investors LLC

The European economy ends 2020 fairly battered and bruised as the second wave of the COVID-19 pandemic hit hard, both in terms of infections and the wider economy. Offices are showing some weakness on the occupier side, while retail continues to struggle. Logistics has been going from strength to strength, however, as have alternative sectors such as residential. Overall, capital markets remain buoyant as there is significant dry powder targeting real assets.

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PGIM – Global Data Centers

Courtesy of PGIM Real Estate

In this global report, PGIM looks at the underlying demand for data centers and examines how, based on current trends, the sector is set to grow significantly in the coming years.

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PGIM – Trends for 2021

Courtesy of PGIM Real Estate

PGIM's Investment Research team identifies the nine major occupier and investment trends expected to influence market conditions and investment performance in 2021 and beyond.

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Nuveen – Perspectives in today’s real estate market

Courtesy of Nuveen Real Estate

Learn more about the trends and themes shaping the real estate market today in Nuveen Real Estate’s latest commentary: Perspectives in today’s real estate market. Developed by Nuveen’s market leading research team, you’ll gain a deep dive into global, regional and sector trends and learn why we believe strategic allocation of real estate is the right choice for long-term investment benefit.

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Nuveen – Net zero carbon pathway

Courtesy of Nuveen Real Estate

Climate change poses a complex set of investment risks and opportunities for real estate portfolios. Nuveen Real Estate’s net zero carbon pathway highlights our robust framework for anticipating, evaluating and addressing issues before value corrections erode financial performance.

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Principal – The Decisive Eye, Spring 2021

Courtesy of Principal Real Estate Investors

Are real estate investors already invested in infrastructure? While optimism mounts and recovery begins, the ever-present challenges for long-term investors remain—the need for income, portfolio diversification and capital growth. Read more in Principal's newest issue of The Decisive Eye.

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Prologis – Forever Altered: The Future of Logistics Real Estate Demand

Courtesy of Prologis

The global pandemic has forever altered the logistics real estate landscape: supply chain decisions have become more holistic, more data-driven and more urgent than ever. Underlying this shift are the same forces—urbanization, digitalization and demographics—that have changed the way we live, work and shop. This report aims to separate the transitory nature of human and company behavior during the pandemic from the real lasting forces that will continue to drive the supply chains of the future.

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Principal – Interest rates are rising, should real estate be concerned?

Courtesy of Principal Real Estate Investors

Capital markets are increasingly penciling in a higher interest rate scenario as reflected in a sharp steepening in the Treasury yield curve over the past 30 days. The yield on the 10-year bond has increased by 40 bps over the past 30 days. Capital markets anticipate a continued increase in benchmark 10-year yield, which has resulted in elevated volatility in public risk assets as well as growing questions on appropriate risk premia from illiquid investments. What does this mean for real estate? How will the different property types respond?

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UBS – Real Estate Outlook: Global, Edition 1, 2021

Courtesy of UBS Realty Investors LLC

The rollout of vaccines gives rise to cautious optimism that the economy will improve in the second half of the year as lockdowns can be lifted. Real estate investment activity has shown some pick-up but remains below pre-pandemic levels. Logistics property remains the focus for the main commercial sectors, with interest in niche and specialist real estate types being driven higher.

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UBS – Themes and Forecasts: US – Real Estate Outlook 2021

Courtesy of UBS Realty Investors LLC

The economic disruption caused by the pandemic brings new and unique opportunities for US real estate investors. Some weakness should persist into 2021 as effects from the pandemic and 2020 recession ripple through society and the economy. As the year progresses, positive news on vaccine distribution, competitive lending markets, and fiscal stimulus should support a meaningful rebound in economic growth and a turnaround in aggregate real estate performance.

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Principal – US Real Estate Sector Report

Courtesy of Principal Real Estate Investors

We are excited to share our new bi-annual sector report featuring insights from investment professionals across all four real estate quadrants and providing current conditions and outlooks for all of the core real estate sectors, as well as emerging sectors such as data centers and life sciences.

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UBS – Real Estate Outlook – Edition 1, 2021

Courtesy of UBS Realty Investors LLC

Real estate investment activity has shown some pick-up but remains below pre-pandemic levels. The retail and office sectors continue to face headwinds even as the economy improves, while logistics remains the focus for the main commercial sectors. Investors should remain on the lookout for tactical opportunities arising from the pandemic.

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Principal – Europe Real Estate Sector Report

Courtesy of Principal Real Estate Investors

The long shadow of COVID-19 continues to impact Real Estate everywhere, not least in Europe where vaccination programmes have had a rocky start. However, as we reveal in our new bi-annual European Real Estate Sector Report, not all sectors have been impacted in the same way as we highlight in the latest edition.

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2020 Prologis Logistics Rent Index: Resilience Tested

Courtesy of Prologis

Introduced in 2015, the Prologis Logistics Rent Index examines trends in net effective market rental growth in key logistics real estate markets in North America, Europe, Asia and Latin America. Our proprietary methodology focuses on taking rents, net of concessions, for logistics facilities. To create the index, Prologis Research combines the company’s local insights on market pricing dynamics with data from our global portfolio. Rental rates at the regional and global levels are weighted averages based on estimates of market revenue.

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Antifragility of Real Estate Investments in a World of Fat-Tailed Risk

Courtesy of Principal Real Estate Investors and
the University of San Diego School of Business
and the Burnham-Moores Center for Real Estate

Investors have sought to add real estate to their multi-asset portfolios due to the lower volatility, higher component of total return from income, diversification and tangible nature associated with real estate relative to other assets generally. Real estate is often seen as defensive in this regard. Exogenous shocks or Black Swan events, such as Covid-19, are by definition, ‘unknowable’ with respect to occurrence and consequence and therefore susceptible to the limitations of statistical models, a priori. This paper examines real estate investing, not just from whether it is defensive, but whether it has antifragility characteristics. Antifragility refers to an investment that is not only robust to exogenous shocks but benefits from such shocks. We show from first principles and from empirical data that real estate has antifragility and warrants higher allocations to multi-asset portfolios for this reason.

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UBS – Set to grow, the rise of the European multifamily sector

Courtesy of UBS Realty Investors LLC

Real estate investor interest for European multifamily assets has been growing continuously in the last decade. In UBS's view, resilient income-driven performance, supported by strong occupier market fundamentals and long-term socio-demographic trends, will continue to fuel the rise of this asset class in the coming years.

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UBS – Embracing change, the future of the office sector

Courtesy of UBS Realty Investors LLC

In this paper, UBS examines how office space will continue to add value to employees and employers after the current health situation has subsided. The post-COVID-19 future will be characterized by technological advances and organizations determining the right balance of remote work to advance their organizational priorities rather than one that sees a move toward an office-free world. Core and value-add office strategies which follow the three investment principles of purpose, accessibility and ESG, can provide good opportunities.

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UBS – Growing a greener world with farmland

Courtesy of UBS Realty Investors LLC

Sustainable farmland practices play a vital role in reducing greenhouse gas emissions as well as conserving energy and water. It can also help to meet global demand for food, while encouraging sustainable practices benefiting the environment over the long-term. Investors, tenants, local operators and farm managers, should foster sustainability best practices, while respecting the land rights and the communities in which they operate for a greener and more sustainable future for us all.

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Data Center Frequently Asked Questions

Courtesy of National Real Estate Advisors

Over the past two decades, the data center sector has emerged from relative obscurity in many investing circles to become a key topic of conversation. The sector's popularity was put to the test throughout 2020 and 2021 with the onset of COVID-19. The stress test resulted in proof that the investment space appears to be a resilient one, worthy of additional attention and due diligence. With this acknowledgment comes questions that those investing in real assets should consider as they review the merits of new and additional investments in the data center space.

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Prologis – Logistics Real Estate and E-Commerce Lower the Carbon Footprint of Retail

Courtesy of Prologis

With e-commerce setting records during the 2020 holiday season and package deliveries forecast to grow by 80% over the next decade, a new study by the MIT Real Estate Innovation Lab reveals the tangible environmental benefits of online shopping. Driven by the stay-at-home economy, online retailing surged and remained at peak levels throughout 2020. Early estimates suggest U.S. online sales grew by upwards of 50% (y/y) in 2020’s expanded holiday shopping season, with similar trajectories in other major e-commerce markets including China, Europe, Japan and elsewhere. Using average emissions results from the MIT study, the share shift to e-commerce resulted in approximately 2.4% fewer emissions per package.

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Prologis – Automation and Logistics Real Estate #2: How Automation Can Help Navigate Urgent Supply Chain Challenges

Courtesy of Prologis

The growth of e-commerce over the past decade has demonstrated just how critical logistics real estate is to our customers’ revenue generation. Increasingly, logistics users must have the right location and the right building equipped with the right features in order to tap into the power of today’s evolving supply chain as a source of competitive advantage. Automation has the ability to unlock this potential in a big way. The logistics real estate sector has been facing shortages on two key fronts: a shortage of skilled labor and of well-located logistics space. Compounding this is the severe capacity crunch in last mile delivery -- shippers and parcel delivery companies cannot handle more packages and are turning away business. Increasingly, customers recognize that automation can help address these issues, and those that do not act now are getting left behind. In examining the tie between real estate and automation in customer operations, we identified four key takeaways.

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UBS – Infrastructure Outlook, Key Themes for 2021

Courtesy of UBS Realty Investors LLC

As we approach the end of 2020, the infrastructure sector looks to have weathered the COVID-19 crisis reasonably well. While certain sub-sectors were severely impacted, 1Q20 valuations for the sector were more resilient than other alternative asset classes and infrastructure companies saw fewer downgrades and defaults than their equivalent corporates. With a vaccine in sight, policy makers will continue to focus on how to support the economy in the interim, while fiscal stimulus looks like an attractive proposition. Government spending is likely to be directed towards supporting jobs while also investing in healthcare, decarbonization and digital infrastructure, potentially providing a boon for infrastructure investors.

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UBS – Top 10 real estate questions for 2021

Courtesy of UBS Realty Investors LLC

When we looked ahead to 2020, back in early December 2019, we have to confess that we did not even mention COVID-19, let alone foresee the massive impact that this new virus would have on the world. However, some of the predictions we made then have proved prescient. In our latest Top 10 real estate questions, we explore how the year developed and provide our predictions on real estate for 2021.

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Prologis – Automation and Logistics Real Estate #1: The State of Automation in Supply Chains

Courtesy of Prologis

Automation has the power to revolutionize logistics operations. As capabilities expand alongside declining costs, faster returns on investment (ROIs) are fueling adoption. Three trends are aligning to drive higher levels of automation within our facilities. First, COVID has led to greater absenteeism, further stressing labor availability. Second, technology continues to improve, expanding capabilities and reducing costs. Third, labor-intensive operations, specifically e-commerce, are growing quickly. These users benefit greatly from this technology and are leading adopters. This dramatic transformation cannot be overstated: What was expected to take years to gain traction is occurring in mere months. As a result, some logistics customers are making significant investments in automation. In this report, the first in a series, we examine the current state of warehouse automation, how it is changing, and impacts on desired building features.

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UBS – US Annual Real Estate Outlook 2020, Edition 4

Courtesy of UBS Realty Investors LLC

A widespread rise in virus cases threatens the economic recovery, though positive news on vaccine trials points to brighter prospects for 2021. Investment activity remains subdued and real estate capital value movements have varied by sector, showing small falls at the all property level in the third quarter. So far there is limited distress in the market, but we do expect some investment opportunities to be generated.

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UBS – US election and the impact on infrastructure

Courtesy of UBS Realty Investors LLC

Under a Biden presidency, the next wave of infrastructure investments will have greater emphasis on ESG issues. The extent of this will depend on the outcome of the Senate race, although historically, there is more bipartisan support for clean energy than headlines suggest. Private infrastructure funds, equipped with USD 200 billion of dry powder, will likely play an important role, especially given government budget constraints.

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California’s Central Valley: Land of affordability, growth and opportunity

September 2020 - The Central Valley is California’s fastest-growing and most-affordable region. The area’s economy is fueled by three large, recession-resistant economic sectors: government (including the nation’s second-largest government center, Sacramento), healthcare and agriculture. Based on projected future economic and population growth — as well as higher cap rates — the Central Valley is a classic example of a secondary market that is in the early stages of transitioning away from local and regional ownership to a larger base of institutional owners. This report by Institutional Real Estate, Inc. titled California’s Central Valley: Land of affordability, growth and opportunity, looks at the opportunity in California’s Central Valley, where investors can tap into the region’s growth story and still find markets and properties that offer significantly higher risk-adjusted returns.

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Life Sciences: Expanding life sciences industry creates opportunity for real estate investors

August 2020 - The life sciences property sector has flourished during the past few years and that trend is expected to continue in the near term and well into the future. The sector’s positive property fundamentals have been fueled by record-setting life sciences industry capital infusions, creating growth and additional demand for office, R&D, lab space and other related facilities. Investors are increasingly recognizing the benefits — strong property-level fundamentals, portfolio diversification, value-add opportunities — of investing in life sciences properties in well-established and emerging clusters across the United States. This report by Institutional Real Estate, Inc. titled Life Sciences: Expanding life sciences industry create opportunity for real estate investors, looks at the opportunity in the expanding life sciences sector, the increase in employment rates, investor opportunity in life sciences and more.

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Prologis – Logistics Real Estate: Sizing the Retail Conversion Opportunity

Courtesy of Prologis

Crisis precipitates change. COVID-19 has brought more than five years of evolution in the retail landscape into less than five months of time. Increased demand for high quality and infill logistics real estate is on the rise, stemming from the accelerated adoption of e-commerce and just-in-case inventory. In contrast, challenges have become more pronounced for retail real estate. Collectively, these changes have prompted retail owners to explore the opportunity to convert retail space for distribution uses. Prologis Research sized this trend to measure the potential implications for our industry.

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UBS – US Annual Real Estate Outlook 2020, Edition 3

Courtesy of UBS Realty Investors LLC

Economies have seen the sharpest contractions on record while massive central bank and government intervention has supported asset prices. In real estate the crisis has turbo-charged trends we were already seeing prior to the crisis, boosting logistics and hurting retail. We are now in the social-distancing phase, but investors need to think long-term and position themselves for once the pandemic has passed.

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UBS – Logistics post-COVID

Courtesy of UBS Realty Investors LLC

This paper explores the impact of COVID-19 on both the industrial sector and European distribution networks. UBS leverages a variety of economic and high frequency indicators to see how the demand for logistics real estate may evolve in the coming years.

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Global Outlook: Real Estate During a Crisis

Courtesy of PGIM Real Estate

The outbreak of COVID-19 has quickly translated into a severe shock for the global economy and real estate markets. Near-term indicators of performance have turned sharply downward, and the situation is fast-moving. At the same time, some lessons for what is to come can be drawn from past downturns, although causes and effects are, as always, different this time. Values are set to remain under pressure in the near term owing to stress in occupier and investment markets — and the range of possible outcomes is wide — but there are some reasons for optimism.

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Asia Pacific Outlook 2020: Real Estate During a Crisis

Courtesy of PGIM Real Estate

The outbreak of COVID-19 has quickly translated into a severe shock for the global economy and real estate markets. Near-term indicators of performance have turned sharply downward, and the situation is fast-moving. At the same time, the Asia Pacific region is set to lead a global recovery, and while real estate occupier and investment markets are under near-term pressure, a significant opportunity set is expected to emerge.

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UBS – US Annual Real Estate Outlook 2020, Edition 2

Courtesy of UBS Realty Investors LLC

No property type is immune to uncertainty and financial impact. A great deal of uncertainty remains around the reopening and recovery of the US economy, a process that is likely to be extended over time rather than a quick rebound to pre-downturn economic levels.

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UBS – COVID-19 European Office Markets Series, Edition 3

Courtesy of UBS Realty Investors LLC

Deal flow has returned to most European markets, but heavily focused towards the core end of the risk spectrum. Pricing in this segment of the market appears to be holding up, but discounts expected as assets move up the risk curve. Historically low leverage levels should help prevent forced sales. But rising costs of new lending may stifle a recovery in activity and place outward pressure on yields.

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Back to Work: Office Demand in a Post-Pandemic World

Courtesy of MetLife Investment Management

We believe that forecasting the effects of COVID-19 on office demand requires the consideration of four factors. These include [1] the number of workers who will permanently begin working from home full time, [2] the number of workers who will adopt flexible schedules such as working from home one or two days per week, [3] how firms will change space needs as a result of flex working, and [4] how firms will change layouts to be better prepared for future pandemics.

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AEW Research – 2020 Global Strategy Perspective

COURTESY OF AEW

As we start the third decade of the 21st century, it is an opportune time to take stock of real estate markets around the world. Despite the aftershocks of the global financial crisis, most investors have taken advantage of real estate opportunities outside their home markets. At AEW we have been working with international investors for nearly 40 years. In this report, we share our perspective on global investment markets, considering both global trends and occupier market trends.

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UBS – COVID-19 European Office Markets Series, Edition 2

Courtesy of UBS Realty Investors LLC

Limited current and future supply levels will limit the decline in prime office rents in the short term. But the economic challenges are likely to lead to headcount reductions, with corporates vacating unutilized space. This trend could be accelerated, if as we expect, corporates adopt higher levels of flexible working in a post COVID-19 world.

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UBS – US office real estate market – What happens next?

Courtesy of UBS Realty Investors LLC

UBS believes it is too early to write the epitaph for the entire office sector as there are a number of counterbalancing forces at work. However, the realities are that landlords, companies and tenants alike will all be forced to improvise, adapt and overcome a number of challenges in the post COVID-19 world.

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UBS – COVID-19 European Office Markets Series, Edition 1

Courtesy of UBS Realty Investors LLC

Disruption to office occupiers is not as significant as other sectors. But a protracted downturn will hurt revenue streams and lead to a spike in defaults. Serviced office providers are, however, facing very immediate impacts to their cash flows. Will they be able to survive long enough to benefit from any structural shifts longer term?

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UBS – US Annual Real Estate Outlook 2020, Edition 1

Courtesy of UBS Realty Investors LLC

It's an election year. Economic growth lost some steam. Interest rates remain low. Our US Real Estate Outlook 2020 outlines where we see solid fundamentals and uncovers pockets of uncertainty. Find out what we expect for the four property sectors in the new year, including strategic themes to guide investment decisions in private real estate.

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Invesco Real Estate – Considerations for investing in global real estate

Courtesy of Invesco Real Estate

Invesco Real Estate presents, "Considerations for investing in global real estate." Many investors are familiar with the appeal of holding real estate. With a generally low correlation to other asset classes, it can serve as an instant diversifier in a mixed-asset portfolio. Historically, real estate has delivered strong relative performance across multiple cycles compared to other asset classes, and its characteristic stable income, underpinned by long-term leases, makes it a compelling alternative to traditional fixed-income instruments. Participation in real estate from the investor community is one of the highest among the various alternatives asset classes, and is expected to grow in importance in portfolio allocations moving forward.

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AEW Research – European Real Estate Debt – September 2019

COURTESY OF AEW

The AEW European Research & Strategy team are pleased to present our September 2019 quarterly research report, “European Real Estate Debt”, where the European Research & Strategy team takes a closer look at all-in interest rates and loan margins available to investors, as based on our new granular loan-by-loan database. The results of our new commercial real estate interest rate model and its key drivers are being discussed. The lender perspective is also considered by looking at historical loan defaults and losses to ensure that current margins are sufficient to cover these.

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AEW Research – European Factor Investing 2019 – June 2019

COURTESY OF AEW

The AEW European Research & Strategy team are pleased to present our June 2019 quarterly research report, “Factor Investing 2019”, where the European Research & Strategy team have applied Factor Investing to nearly 40 European office markets. Factor Investing identifies multiple factors that drive excess returns compared to any market portfolio. This so-called smart beta strategy uses factors such as volatility, liquidity, quality, value, yield and growth. Finally, we compare factor investing to the traditional core and value add investment styles.

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AEW Research – 2019 European Annual Outlook

COURTESY OF AEW

The AEW European Research & Strategy team are pleased to present the 2019 European Annual Outlook. In this forward looking report, we present our outlook for the European commercial real estate markets for 2019 and beyond. As many European markets move into the later stages of the cycle, we launch our new risk-adjusted return approach to help meet the increasing challenges investors will face.

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Asia Pacific in 2019: watch for risks and opportunities

Courtesy of Nuveen Real Estate

January 2019 — After 10 years of relatively unabated economic strength, the region looks to be stuttering. However the softer economic environment does not come as a surprise; mid last year we flagged a potentially slower growth trajectory for the Asia Pacific region in the latter half of 2018. Among the reasons we cited trade tensions exacerbating weakness in China’s economic slowdown, tighter financing conditions from rising global interest rates, and the related pass-through into weaker domestic demand. However, it is the depth and breadth of the potential slowdown that should currently worry global institutional investors. To be sure, regional growth has slowed in the past few months, but the outlook remains cloudy at best if recent equity market performance is any guide.

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U.S.: Investing in the MiMis (Millennials & Middle Income Households)

Courtesy of Nuveen Real Estate

November 2018 — We believe MiMis, or millennials and middle income households, will continue to drive demand for U.S. apartments in the coming decade. We define middle income households as those earning between 80% and 120% of area median income which is typically those earning between $45,000 and $75,000 per annum. These households comprise between 20% and 35% of each age cohort. Middle income households often have to rent out of necessity which creates consistent demand for apartments targeting middle income renters. Millennials are the largest generation on record and like the Baby Boomers before them, they will reshape the economy and many industries as they heavily consume goods and services, including housing. Millennials compose 35% of the workforce and their contribution to the U.S. economy continues to grow. In this analysis, we define the millennial generation as those born between 1981 and 1998. Furthermore, we divide the millennials into older millennials (OMs) and younger millennials (YMs) cohorts.

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The REIT Cap Rate Perspective

Courtesy of CenterSquare Investment Management LLC

March 2018 — CenterSquare’s REIT Cap Rate Perspective presents the market pricing of $1.5 trillion of real estate in the U.S. REIT market, seeking to quantify the valuation gap between public and private markets. While at times the disparity may be temporary or driven by short term volatility, the forward discounting inherent in public markets can also offer investors insights as to the possible future direction of real estate values. In this report, CenterSquare shares their proprietary REIT implied cap rate results at the sector and geographical level on a quarterly basis.

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2018 Real Estate Outlook: Optimize opportunities in an ever-changing environment

Courtesy of Deloitte

October 2017 — Real estate investors should consider the following trends and potential value they can bring to their investments in the year ahead: current REIT valuations are increasingly being impacted by investor activism, there is substantial capital flow from non-VC investors, robotic process automation can help CRE companies bring down costs drastically and may end up being cheaper than offshoring.

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Global Real Estate Market Outlook 2017

Courtesy of CBRE

February 2017 — The world in 2017 has much to offer, but it will require real estate professionals to be more informed than they have ever been. As well as comprehensive macroeconomics and real estate coverage, CBRE offers five key research themes: Capital markets: the search for alternatives Office: new work styles, new locations Retail: changing technology Industrial: transformation of the supply chain Hotel: new experiences, new platforms

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Perspective 2017 — United States

Courtesy of Bentall Kennedy

January 2017 — Despite significant global economic and political uncertainty, the steady U.S. economy — aided by stimulative fiscal policy — could see stronger growth in 2017, supporting attractive returns for real estate investors.

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Trends for 2017: Global Real Estate Trends Set to Shape the Next 12 Months

Courtesy of PGIM Real Estate

December 2016 — PGIM identifies nine major occupier and investment trends that are expected to influence market conditions and investment performance in 2017 and beyond. Uncertainty is higher than it was 12 months ago — forthcoming elections in major European countries carry a renewed significance in light of recent results — but the economic backdrop remains broadly supportive. Sentiment is holding up, and the global growth outlook is steady going into 2017.

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The Case for Income Producing Real Assets

Courtesy of CenterSquare Investment Management

Q2/2016 — In the post Global Financial Crisis investment world, a distinct asset class called “Real Assets” has emerged, primarily motivated by the desire of investors to increase diversification and income while reducing volatility. In the current low yield, low growth investment environment, we recommend a more defined focus on “Income Producing Real Assets” (IPRA) in an effort to meet these objectives. Download the report to continue reading.

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The Modern Office Paradigm: An AOR perspective

Courtesy of Adaptive Office Resources

March 2016 — Cloud-based software applications, smartphones and other mobile devices have unplugged and revolutionized the modern-day workforce. This is having a profound effect on office owners, occupiers and employers, and will challenge the existing paradigms that platform the entire commercial office real estate industry for years to come.

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Resilience of Airports

Courtesy of Magellan Asset Management Limited

March 2016 — Since the development of commercial aviation during the post-World War II era, passenger volumes at major commercial airports has grown at multiples of GDP over any medium-term period. This growth reflects many underlying factors including increasing wealth, real reductions in the cost of air travel, developments in aircraft technology and improvements in international airspace regulation. Download report to read more.

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Europe Infrastructure Strategic Outlook 2016

Courtesy of Deutsche Asset Management

March 2016 — The 2016 outlook for Europe remains one of gradual recovery. However, unlike previous years, Europe seems to be on a firmer footing relative to other parts of the globe. Although the continent has not been immune to recent global uncertainty, consumers and businesses have so far seemed undeterred, leading to an acceleration of GDP growth in 2015. Download the report to read more.

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Australian Infrastructure Investment Report 2016

Courtesy of Infrastructure Partnerships Australia and Perpetual

2016 — Infrastructure Partnerships Australia (IPA) and Perpetual Corporate Trust have again undertaken this study of the Australian market for infrastructure projects and are delighted to jointly publish the Australian Infrastructure Investment Report.

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PCCP Market Commentary: Looking in the Rear View Mirror Fourth Quarter 2015

Courtesy of PCCP LLC

Q4/2015 — 10 years is a magical number in the real estate business. Many investors analyze their returns over a hypothetical 10‐year hold, most standing loans on commercial real estate have a 10‐year term, and most closed‐end funds have a 10‐year life. Many commercial leases have 10‐year base terms. At the end of the 10‐year cycle, portfolios are culled and rationalized, loans are refinanced, funds are liquidated, and a whole new crop of tenant improvements and capital expenditures is needed to attract or retain tenants. Download the report to continue reading the most recent quarterly PCCP White Paper.

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Europe’s investible residential landscape

Courtesy of Aberdeen Asset Management

September, 2015 — This paper delivers Aberdeen’s current research into the European residential sector at a country level.  Specifically, we examine the rented, institutionally-owned residential sector.  We believe that supply is constrained across Europe and on-going capacity constraints are commonplace.  Development has simply not kept pace with demand.  In our opinion, the most attractive market for residential real estate is Germany; however, other markets look promising as well. There are significant investment opportunities in the Netherlands, Sweden, Switzerland, Denmark, France and increasingly the U.K.  Read our paper to learn more about how residential markets can differ enormously between countries and cities.

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Asia Pacific Real Estate Strategic Outlook: Mid-Year Review

Courtesy of Deutsche Asset & Wealth Management

August, 2015 — Real estate performance across much of the Asia Pacific region has been steadily attractive on the back of a strong capital market and healthy recovering leasing market. Japan, China, Hong Kong and Singapore experienced strong office leasing demand in the first half of 2015, while Australia and Korea witnessed short-term challenges due to a weakened economy. Recovery is expected in 2016 for key most markets while it is likely to remain subdued in Singapore due to a surge of new supply. Download the report to read more.

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U.S. Real Estate Strategic Outlook: Mid-Year Review

Courtesy of Deutsche Asset & Wealth Management

August, 2015 — The U.S. commercial real estate market has delivered impressive total returns over the past five years. So impressive, in fact, that some investors are beginning to wonder how much longer the momentum can run. This cycle, like all others, will eventually come to an end. Yet real estate has historically performed well in moderate-growth, low interest rate environments, conditions that we expect to persist for several more years. Download the report to read more.

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Europe Real Estate Strategic Outlook: Mid-Year Review

Courtesy of Deutsche Asset & Wealth Management

August, 2015 — Europe’s economic recovery remains on track. Although not without risks, with ongoing concerns in places such as Greece and Ukraine, on the whole the outlook for the European economy has improved over the past six months. Confidence is high and jobs are being created. With the ECB undertaking quantitative easing, bond yields are lower than had been previously expected, while the threat of Eurozone bond yields trending considerably higher over the coming years is small. Download the report to read more.

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The effect of interest rates on listed real estate

Courtesy of Deutsche Asset & Wealth Management

June, 2015 — One primary consideration of investors looking to make an allocation to listed real estate via real estate investment trusts (REITs) today is the impact that a rising-rate environment has on the relative performance of REITs vs. other broader asset classes. The purpose of this paper is to discuss how REITs have historically performed in different interest-rate environments, where we are today, and what we can expect going forward. We will also discuss the role of REITs in a portfolio as part of a comprehensive investment strategy.

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PCCP Market Commentary: The ‘Burbs Second Quarter 2015

Courtesy of PCCP LLC

Q2/2015 — The eponymous movie starring Tom Hanks was released in 1989 at the onset of a massive population shift away from the urban core of American cities and into the suburbs. In the years that have passed since the Great Recession, however, America’s inner cities have led the way in the recovery, leading many to the conclusion that we have entered into a new paradigm of re‐urbanization. As it relates to commercial real estate, the thought is that a shift in population growth away from the American suburb will have a profoundly negative impact on suburban office as employers follow their workforce back into the CBD. Our instincts tell us that the “death of the American suburb” drum beat proliferated in the media is misguided and overplayed, a recipe for a good investment opportunity. In the end, success in real estate investing all boils down to supply and demand. Let’s take a step back and look at the macro forces at work.

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The State of the U.S. Real Estate Market – Spring 2015

Courtesy of CenterSquare Investment Management

Spring, 2015 - The apparent predictability of the development cycle begs the question that if we can see projects rising before our eyes, and we can measure their progress along the way, and we can predict with a high degree of certainty when they will arrive, then why do so many people continue to claim that you cannot time the real estate market? The market cannot hide the supply pipeline that it is delivering from a distance, as the data and the physical evidence are available to most anyone who takes the time to observe them. The reality is that you can time the cyclicality of the real estate market, and, more importantly, to be a superior investor, you actually must time the market. More on that idea to follow, but first let’s set the stage...

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How to invest in property in global “winning cities”

Courtesy of Aberdeen Asset Management

March, 2015 — The world is becoming increasingly urbanized, with a rising number of “megacities” that are experiencing rapid growth in both population and affluence in both the developed world and emerging markets. The world’s gateway cities are very appealing to property investors and appear to be a magnet for international capital. While there are common, shared characteristics across the world’s gateway cities there are also pronounced differences, particularly in the key variable of supply constraint (or lack of it).

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The Wealth of Cities: The Investment Implications of Urban Expansion

Courtesy of Prudential Investment Management

2015 — This report, put together by Prudential Investment Management (PIM), examines why right now is the primetime of urbanization, and explores the investment opportunities currently available in emerging markets due to the growth of cities, including urban infrastructure, real estate, technology, anti-pollution initiatives, and more.

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Realising The Asean Economic Community in 2015

Courtesy of Knight Frank LLP

2015 — With the ambitious target of implementing the Association of Southeast Asian Nations (ASEAN) Economic Community (AEC) by 2015, the opportunities for corporate occupiers and real estate investors across an enlarged single market of some 600 million people look promising. Nicholas Holt examines the background, the challenges and the possible impacts. Nearly five years on from the signing of the AEC blueprint in November 2007, the region is now only three years away from the target of fully implementing measures to create a single market with free movement of goods, services, foreign direct investment and skilled labour.

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PCCP Market Commentary: Condos, Condos Everywhere Third Quarter 2014

Courtesy of PCCP LLC

Q3/2014 — We're continuing our exploration of supply and demand this quarter, but this time we are taking a look at condominiums, which was the last one sector of real estate that had substantial new development and unsold inventory during the last cycle. Today, almost six years later, much of the inventory ha been absorbed - largely at lower prices - or converted to rental units.

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U.S. Research Quarterly June 2014

Courtesy of Cornerstone Real Estate Advisers LLC

June, 2014 — The U.S. economy temporarily contracted in the first quarter, impacted by sever winter weather. Real GDP declined at an annualized rate of 1.0% (second estimate) in Q1 2014, dragged down by declines in private investment and net exports. On the positive side, consumption expanded to a 3% annualized rate and real GDP was up 2% on year-over-year basis. Second quarter economic release portray a resilient and strengthening economy, albeit one that still face challenges (housing and long-term unemployment), that we expect to grow at 3% or above the rest of the year. Job growth is picking up, household wealth is rising, and policy uncertainity has essentially vanished from the news headlines.

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PCCP Market Commentary: Basic Instinct Second Quarter 2014

Courtesy of PCCP LLC

Q2/2014 — This quarter we're focusing on basic rules of economics: specifically, supply and demand. It is commonly understood that the Global Financial Crisis was not a real estate driven recession powered by commercial oversupply, like the early 1990s recession. Rather, it was caused by residential real estate over-pricing, largely driven by over-heated financial markets.

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The Impact of REITs on Asian Economies April 2014

Courtesy of APREA

April, 2014 — Real estate investment trusts (REITs) are relatively young asset class in Asia. The earliest markets to embrace the asset class were Japan and Singapore, both of which saw their first REIT initial public offering (IPOs) just a little over a decade ago. Since then, REIT markets have emerged in Hong Kong, Malaysia, Thailand, Taiwan, and South Korea, with additional markets such as India and the Philippines introducing REIT legislation or considering doing so.

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Pension Fund Investment in Infrastructure: Lessons from Australia and Canada

Courtesy of Inderst Advisory

Spring, 2014 — Australian and Canadian pension funds have been pioneers in infrastructure investing since the early 1990s. They also currently have the world’s highest asset allocation to infrastructure. The article compares and contrasts the experience of institutional investors in the two countries, looking at factors such as infrastructure policies, the pension system, investment strategies, and the governance of pension funds.

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Institutional Investment in Infrastructure in Emerging Markets and Developing Economies March 2014

Courtesy of Public-Private Infrastructure Advisory Facility (PPIAF) and The World Bank Group

March, 2014 — This study discusses the role of institutional investors in financing infrastructure in emerging market and developing economies (EMDEs). It analyzes the present level of involvement as well as the future investment potential of new financing sources such as public and private pension funds, insurance companies, and sovereign wealth funds. Current investment volumes are still low, but interesting, practical examples can be found in a range of countries and projects. International and domestic investors apply a variety of investment approaches in developing countries, using different equity, debt and fund instruments. This overview can yield some lessons for policy makers and investors. There are (more or less) favorable pre-conditions for successful private-investor involvement, and different models work in different situations, depending on the development stage and the institutional environment. Four types of "leadership models" are therefore described for international and/or domestic investors seeking to spearhead infrastructure investment in EMDEs.

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PCCP Market Commentary: Is It 2007 All Over Again? First Quarter 2014

Courtesy of PCCP LLC

Q1/2014 — It's year end, time for the traditional look back at the accomplishments of the year just concluded, and for a look forward at the opportunities to come. The U.S. stock markets are at record highs, despite hints that the Federal Reserve is starting to back off on its quantitative easing strategy. The Wall Street Journal reports that in numerous markets, housing prices are past prior peaks (although the numbers are uneven). The U.S. Treasury is reflecting increased confidence in the economy, passing the 3.0% rate for the first time since 2011.

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Investment Focus: Frozen on the Rates: Impact of Interest Rates on Capitalization Rates

Courtesy of Morgan Stanley Real Estate Investing

January, 2014 — Growing up in Canada, hockey was consistently a big part of my life (and still is). With the winter Olympics coming, 2014 is a big year in the hockey realm as twelve nations will compete for a gold medal in Sochi, Russia. In hockey, there are many ingredients: stick, skates, pads, ice, net, but none more important than the puck. The puck is a frozen disc of vulcanized rubber that every player is chasing, passing, shooting, defending and anticipating its next location. In fact, in the 1990s, Fox Television devised a system which had internal electronics allowing television viewers to track the position of the puck with a blue glow on the screen. Its purpose was to aid viewers to better follow and understand the action of the game.

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THINK GLOBAL: Finding the MAGIC 2014

Courtesy of TIAA Henderson Real Estate

2014 — Within our new organisation, a unified investment strategy has been formulated using top-down analysis to identify the geography and cycle timing of prospective property investments. Targeting countries is the first layer of investment strategy, as country-level factors are a primary driver of property performance. These factors include both long-horizon elements of economic and demographic structure that contribute to the attractiveness of real estate investing, as well as shorter-term dynamics of real estate cycles and their drivers that detemine risk-adjusted pricing. This report offers a description of our top-down process and its conclusions for 2014. Bottom-up analysis dealing with individual sector, sub-markets and specific properties draws from the experience and expertise of our real estate professionals across disciplines. This complements top-down analysis and it an integral component of executing strategy.

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Era of Execution

Courtesy of Center Square Investment Management

November, 2013 — This white paper focuses on the potential of value-add strategies to generate attractive risk-adjusted returns in private real estate. Value-add strategies involve acquiring real estate at an attractive cost basis and then resolving the property’s deficiency, stabilizing the income stream, and increasing the overall value of the property for disposition.

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PCCP Market Commentary Commercial Real Estate Markets: Then and Now Third Quarter 2013

Courtesy of PCCP LLC

Q3/2013 — The U.S. economy appears to have recovered from the financial crisis. Equity markets reached record highs during the second quarter, with the Dow reaching its peak on May 28th at 15,409, an 18% increase from the beginning of the year. Fears of a double-dip recession have subsided behind 2.2% real GDP growth in 2012 and 2.5% projected GDP growth in 20131. With the continued growth of the economy, the Fed indicated that they may begin scaling back their monthly securities buying program. Despite the recent pull back in the markets, most indices are still very much in the positive for the year and the underlying macro-economic statistics are very positive year to date.

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Emerging Trends in Real Estate Asia Pacific 2013

Courtesy of Urban Land Institute

2013 — Investor sentiment across many markets in Asia has grown increasingly uncertain toward the end of 2012, with concern over fading global economic prospects tempered by ongoing strength in asset pricing and persistently compressed yields. The lack of conviction has been highlighted by the divergent approaches of foreign and local investors to property pricing, with Asian buyers often willing to pay up for properties at rates foreigners find prohibitive.

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Global Property Investment April 2013

Courtesy of Aberdeen Asset Management PLC

Global or local? 2013 — Property has long been considered a mainstream asset class for institutional investors. However, for most there has been a strong home-bias, with high exposure to domestic markets. Increasingly, we believe investors are looking toward global property markets as a way to improve potential risk-adjusted returns and divof their property portfolio. The step from domestic to global property investment, however,  is not a trivial one and in some cases it may not be an appropriate solution. We believe the following three steps provide some insights into global property markets and also a framework for investors to understand better whether it might be a suitable approach for them.

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PCCP Market Commentary: Leverage is Back 2Q2013

Courtesy of PCCP LLC

2Q/2013 — The 2008 financial crisis may forever be associated with one word: leverage. Homeowners (no money down mortgages), investment banks (30 to 1 leverage) and governments ($1 trillion deficits) took on too much debt, and the resulting correction has been painful. Now, it seems that leverage is returning to commercial real estate, presenting new opportunities and a new set of risks. Leverage has grown more complex, and before making an investment, investors need to consider how leverage will impact investments in different parts of the cycle. Skillful management of leverage will be critical for investors to achieve required returns and survive any potential market correction.

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The Elements of Investing in Real Asset March 2013

Courtesy of Cohen and Steers

March, 2013 — Defining the Objectives and Characteristics of a Real Assets Framework In our view, the design of a real assets investment strategy is not just about inflation protection; it’s also about delivering attractive long-term returns with less volatility than found in most individual real asset classes. When inflation is rising, the strategy’s return potential should rise as well. When inflation is easing, its diversified return profile should be less volatile than those of individual real asset classes. And finally, the strategy should offer diversification(1) benefits for portfolios of stocks and bonds. As we applied these objectives to the design of a real assets framework, we identified five central themes.

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Global Listed Infrastructure March 2013

Courtesy of CBRE Clarion Securities

March, 2013 — Investment in infrastructure is among the world’s leading growth drivers and is a strategic priority for countries worldwide. Listed infrastructure companies are playing a dominant role in the accelerating growth of the infrastructure asset class globally. More than $50 trillion is likely needed to fund global infrastructure projects in the coming years, essentially making infrastructure among the world’s largest growth industries.

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The Case for Real Estate Securities March 2013

Courtesy of Cohen & Steers

March, 2013 — Real estate securities combine the benefits of owning commercial real estate with the features of publicly traded stocks. This unique combination results in a set of investment characteristics that we believe make a compelling case for a long-term strategic allocation to the asset class.

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Global Construction Disputes: A Longer Resolution

Courtesy of EC Harris

2013 — The key finding of this year’s report into global construction disputes is that disputes are taking longer to resolve. Overall, they are now taking over a year to resolve, with the average length of time for a dispute to last in 2012 being 12.8 months, compared to 10.6 months in 2011. This continues the trends for longer disputes - in 2010 disputes were taking 9.1 months to resolve. Whilst dispute durations are getting longer, the value of disputes was broadly stable in 2012. The average value of global construction disputes in 2012 was US$31.7 million, down slightly from US$32.2 million in 2011.

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Opportunistic Investing in Europe: The Case for Germany, Poland and the Czech Republic

Courtesy of Peakside Capital

2013 — Over the last 12 to 18 months, there has been a noticeable increase in interest from US investors for opportunistic real estate investment in Europe. At Peakside Capital, we attribute this change to both "pull" and "push" factors. The "pull" is the realization in the US that the worst of the Eurozone crisis is behind us and parts of Europe are actually doing quite well. The "push" is the realization that the opportunities arising from the financial crisis in the US are now largely exhausted and so investors are looking further afield, with Europe being the next target. In other words, US-based investors now view Europe more as an "opportunity" than a "risk".

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Real Estate Secondary Market Transaction Volume Reaches $2.6 Billion During 2012

Courtesy of Landmark Partners

2012 — The market for real estate secondary transactions has recorded a fourth straight year of record transaction volume, with $2.6 billion of activity during 2012, based on Landmark Partners’ annual global tally.  A tenured investor in the real estate secondary market, Landmark continues to aggregate this data through a variety of channels including the firm’s own transaction experience as well as discussions with other market participants.

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Family Offices in Singapore

Courtesy of Family Offices Group

2013 — The Singapore Family Offices report is  a short report on what really makes Singapore such a unique location for family office and fund management activities.

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2013 M&A Outlook Survey: Executives Expect M&A Market to be Active in the Year Ahead

Courtesy of KPMG LLP

2013 — KPMG and Mergers & Acquisitions magazine conducted a survey of over 300 M&A professionals at U.S. corporations, PE firms, and investment funds immediately after the U.S. election to gain a better understanding of the current M&A market. This publication analyzes the findings of the survey and provides insights into the outlook for M&A in 2013. For additional news and information, please access KMPG LLP's Web site on the Internet at https://www.us.kpmg.com

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Emerging Trends in Real Estate Europe 2013

Courtesy of Urban Land Institute

2013 — Optimism has returned to Europe’s real estate industry. Sentiment among industry leaders about the prospects for their businesses is more positive than at any time since 2008, despite the uncertain macroeconomic outlook. Equity for investment in prime commercial real estate is expected to increase, but bank debt is predicted to contract further. Emerging Trends Europe’s respondents are adjusting to this “new normal.” Those with access to capital are focusing on opportunities in areas they know best. They recognize that traditional stock selection and micro asset management skills are crucial to generating returns. The environment offers very little certainty and definitely no quick wins. Europe’s real estate markets continue to be challenging, but all sectors offer new investment potential, too.

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Capital Markets Lender Forum February 2013

Courtesy of CBRE Capital Markets

February, 2013 — Commercial real estate lending markets finished 2012 on a high note, with a flurry of deals closing during the fourth quarter. According to CBRE's analysis of loan closings, total lending volume increased by 18% in Q4 2012 over year-earlier levels. In addition to strong growth in multifamily lending from the agencies (up 36% from 2011 levels), banks and CMBS lenders contributed disproportionately to the overall gains.

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PCCP Market Commentary “Haves” and “Have Nots”: Anecdotes vs. Stats First Quarter 2013

Courtesy of PCCP LLC

Q1/2013 — As we enter 2013, we are more than four years into the Global Financial Crisis. As stated in prior commentaries, PCCP believes we are only 40% of the way through the real estate workout cycle. Our view is consistent with the most prominent recent academic literature, which argues that leverage-induced recessions run 7-9 years (This Time is Different by Reinhart and Rogoff). Anecdotally, it feels like strong financial institutions are starting to invest in earning assets, which in our world means making new loans on commercial real estate (“CRE”). Real estate was hit especially hard and the recovery has been a story of “haves” and “have nots” as we all know. The “haves” are the best customers, with strong balance sheets and trophy real estate, or anyone with a Class A apartment project. The “have nots” are everyone else. But what do the numbers show? We analyzed data on the CRE debt world as a whole and the three largest banks holding CRE debt to see how our anecdotal observations match up against the statistics. We conclude that although CRE lending is showing signs of life for the “haves,” there will still be plenty of opportunity to lend on and invest in the “have nots,” specifically institutional-quality, non-core asset recapitalizations.

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A Case for Global Listed Infrastructure

Courtesy of Cohen and Steers

October, 2012 — The fundamental case for infrastructure is grounded in the return potential and inherent characteristics of the asset class—long-lived assets in businesses with high barriers to entry found in monopolistic industries, typically supported by the resilient demand for essential services. The investment opportunities are global, driven by decades of infrastructure neglect in developed economies and the need to build out large scale infrastructure networks in emerging markets.

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September 2012: Will the Office Sector Fall Off of the Fiscal Cliff?

Courtesy of Cassidy Turley

September, 2012 — The phrase “fiscal cliff” was coined by Ben Bernanke, Chairmen of the Federal Reserve, in describing the impact of budget sequestration and tax increases on the U.S. economy, effectively causing a new recession to occur. The Congressional Budget Offi ce (CBO) agrees. They estimate that the new policies will cause real GDP to contract by 0.3% in 2013. However, the CBO acknowledges the possibility of avoiding the cliff if policymakers adopt alternative solutions. In this paper, we review the various scenarios and evaluate the impact each scenario would likely have on the commercial real estate (CRE) markets.

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Q3 2012 U.S. IPD U.S. Quarterly Property Index

Courtesy of IPD

Q3/2012 — U.S. investment returns exhibit consistent growth.  The IPD U.S. Quarterly Property Index, which includes tax-exempt and taxable domestic and foreign investors invested in U.S. private equity commercial real estate, produced a total return of 2.5% in 3Q 2012, consisting of 1.4% income and 1.2% appreciation.

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When safe isn’t safe: Why secondary office/flex transactions present a compelling alternate to core real estate acquisitions

Courtesy of Macfarlan Capital Partners, L.P.

September, 2012 — Recent quarters have shown measured improvement in the United States economy. The current situation, however, contains uncertainty and investors must proceed with what leading economists refer to as “tempered optimism.”1 Allowing this mindset to guide decisionmaking creates a “flight to quality,” leading investors to pursue expensive Class A assets and core assets (such as trophy office towers and multifamily complexes in gateway markets New York City, Boston, Washington D.C., San Francisco and Los Angeles) purchased on historically low cap rates. These premium priced trophy assets attract investors who are looking to allocate equity to perceived stable products, due to an appetite for current yield driven by the record low U.S Treasury bond rates.

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China Research September 4, 2012

Courtesy of Real Estate Foresight

September, 2012 — This report on Chinese real estate markets is designed to serve as a reference chart book to help investors systematically review the key data and indicators illuminating the latest changes, trends and themes in the markets. The information is organized in a way that brings together macro- economic, capital markets and sector specific direct market perspectives

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Asian Property Outlook & Strategy August 2012

Courtesy of Pacific Star

August, 2012 — Global economic activity expanded at a measured pace in the first half of 2012. Leading indicators point to a continued deceleration for most major economies. The private sector recovery remains modest in many countries amidst weak sentiment. As the unresolved Eurozone debt crisis looms over the global economy, the path ahead is fraught with uncertainties and risks. However, not all is gloom and doom. While economic prospects for the U.S. and Europe remain muted, Asia will continue to stand out given resilient domestic demand and greater policy options.

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Commercial Real Estate Survey

Courtesy of KPMG LLP

Q2/2012 — KPMG LLP, the audit, tax and advisory firm, surveyed top-level executives in the commercial real estate industry during the second quarter of 2012.  Participants were asked about business conditions in their sector, the most significant revenue growth areas, and factors that would impede or support recovery in real estate. These responses were compared to the findings of a similar survey conducted among commercial real estate executives in the second quarter of 2011. For additional news and information, please access KPMG LLP's Web site  

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The Case for Opportunistic Real Estate Investment in Europe

Courtesy of J.P. Morgan Asset Management – Global Real Assets

2012 — The past few years have certainly been a testing time for all investors active in the European real estate market. Sovereigns have been on the brink of collapse, economies show little sign of anything remotely approaching a sustained recovery, and the banking system will remain fragile for some considerable time yet. This period of unprecedented volatility has, at times, challenged the very core of the European experiment. Twenty something crisis meetings have come and gone and each has done little to calm the nerves of fractious investors, much less engender any feeling of confidence.

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CalPERS Infrastructure Investment Outreach Review: Laying the Groundwork for Collaboration

Courtesy of CalPERS

September, 2011 — On September 12, 2011, the Investment Committee of the California Public Employees' Retirement System ("CalPERS") Board of Administration ("Investment Committee") earmarked up to $800 million for investment in California infrastructure over a three-year time period. The primary goal of this initiative is to make investments in essential infrastructure assets that meet the risk-return objectives of CalPERS Infrastructure Program ("the Program"), while also potentially benefiting local economic development and essential community services across the state. The Investment Committee instructed staff to develop a plan for outreach to state and local governments to explore the role CalPERS and other pension systems can play in facilitating infrastructure investment in California ("the Outreach Effort").

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