The money talks: Investors and managers wrestle with persistent issues at fall conclave
There were two overriding — and seemingly contradictory — sentiments at the fall Editorial Advisory Board meeting produced by Institutional Real Estate, Inc. (IREI). On the one hand, participants in the Sept. 3–5 gathering in Southern California exuded optimism about the global fiscal situation and its near-term outlook. On the other hand, there was clear concern about the Federal Reserve’s quantitative easing program, interest rates and cap rates. In particular, how the inevitable rise in interest rates will affect cap rates.
The bi-annual meeting, produced since 1991, includes dozens of investors, managers and consultants responsible for roughly $2 trillion in investable assets. The agenda, determined by the participants, involved several hours of facilitated group conversation. The promise of participant anonymity has traditionally made the discussions very candid, and the fall meeting was no exception to that rule.