Never before has developing an institutional real estate investment strategy felt more like something from a science fiction novel than it does today. But the conventional wisdom for the past few millennia has been real estate follows jobs. So if people will not be working, whither goes real estate?
From the Current Issue
Runway Playa Vista, a mixed-use project in the Playa Vista submarket of Los Angeles, has been purchased by Invesco Real Estate for an estimated sales price of $475 million, according to Real Capital Analytics. The sellers are Lincoln Property Co., Phoenix Property Co. and Alcion Ventures.
Closed-end value-added real estate funds showed strong performance in fourth quarter 2015, with their strongest quarterly appreciation since fourth quarter 2010.
Property markets in the euro zone are the most fairly priced globally, according to Aberdeen Asset Management’s first quarter 2016 Global Property Strategy report, released in March. This is at odds with Hong Kong, which Aberdeen’s global pricing indicator suggests is the most overpriced real estate market in the world.
No U.S. city has fallen as far as Detroit, which only makes the city’s Rocky Balboa–like comeback story more compelling. For more than a decade, Detroit was at the bottom of the real estate industry heap. Yet, instead of staying down for the count, the Motor City is on the road to recovery and is making a stirring comeback.
Many U.S. investors continue to have concerns regarding the attractiveness of Latin American property markets, with worries about transparency, economic growth, health and safety. But not every U.S. investor is ignoring the region.
Commercial real estate prices have started to level off following six years of rising transaction prices. The Moody’s/RCA Commercial Property Price Indices tracked a national all-property price decline of 0.3 percent in January 2016.
Construction spending increased in January 2016 by 1.5 percent from the previous month, according to the U.S. Commerce Department. The increase was driven by nonresidential construction, which was up 2.5 percent, while residential construction was virtually flat.
Institutional Real Estate, Inc. collected perspectives from limited partners, multi-managers and emerging managers about some of the challenges that face the industry, as well as some of the benefits of working with new talent.
Real estate has four basic “food groups”: office, multifamily, retail and industrial. These four sectors make up a majority of real estate investing today. Across property sectors, fundamentals currently look strong, although concerns remain in some areas.
The rise of emerging markets has been a key global trend of recent economic history. Although activity in these immature markets — where higher returns are accompanied by greater risk and volatility — remains undeveloped, the potential is clear, and it is no surprise investor interest has increased.
Commercial real estate is experiencing a paradigm shift, as sustainability is increasingly considered a cost of capital. Across the industry, sustainability is no longer an afterthought; rather, it is becoming a proactive measure seen by owners, managers and investors as a means to lower operating costs and increase asset value.
New capital flows to real estate from U.S. investors are projected to total $51 billion in 2016, according to 2016 Institutional Real Estate Trends, the 20th annual investor survey conducted jointly by Institutional Real Estate, Inc. and Kingsley Associates.
The mood was relatively optimistic at Institutional Real Estate, Inc.’s Visions, Insights & Perspectives Europe conference, held Feb. 25–27 in the seaside town of Eastbourne, England. It was an opportunity to share our perspectives with an audience from Europe and the rest of the world. Here are some of the thoughts we shared.