Clearly, the difference in economic environments, monetary and fiscal policies, and the gap in growth rates between the developing and advanced worlds is widening. No doubt, the Chinese, Indian and other developing economies are still export dependent, but what appears to be different now is that the slowdown in the U.S. demand does not seem to produce the negative effect it used to produce just several years ago.

Investment in agriculture is growing rapidly as institutional investors and sovereign wealth funds seek to gain exposure to the rising commodity and land prices as a global food shortage emerges. The amount of arable land available for food production is significantly diminishing, rapid population growth is creating more and more mouths to feed, and the diet of the world’s population is improving as nations become wealthier. Furthermore, the potential to increase food production through improving farming efficiencies is limited. This demand/supply imbalance is creating a global food shortage that is arriving faster than climate change and is creating what has been termed the “other GFC” — the Global Food Crisis.

It is easy to understand why some global investors are not bullish on the prospects for the Japanese economy. The demographics are not positive, politics continue to interfere with an economic reform program and the fiscal situation seems dire, at least on the surface. In the face of all this, can investment value be found in Japanese real estate? We believe it can, but it is achieved by creating value in the property rather than by relying on a market recovery.