Publications

- January 2012: Vol. 24, Number 1

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The New Normal: Investors Search for Returns in Low-Yield Environment

by Mard Naman

In the current environment of low growth and high volatility, investors are searching for new ways to maximize returns and capture higher yields. From exploring out-of-favor or overlooked core to investing in debt strategies or selective secondary markets, they are doing all they can to manage the risk that exists in the broader market, while producing the desired amount of income and growth within their portfolios.

Here is what real estate investors are facing today: The environment of low interest rates, low yields and high volatility has existed for so long that it has become the “new normal.” With the European debt crisis still far from resolved, a barely growing and still-fragile U.S. economy, and no solution in sight to our federal debt issue, it looks like we can expect more of the same for the short-term future.

“Based on our forecasting models, we don’t see much evidence that 2012 is going to present a very different profile from what we’ve

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