A performance number is only comparable if the inputs that go into the formula for calculating those numbers have been uniformly defined and collected, and if the formulas that are used to calculate are identical.
At the end of each year, numerous 2024 Market Outlooks come our way. Studying and comparing these reports is both intellectually stimulating and helpful for business planning as it gives us insight into where our clients’ collective heads are going into a new year. Synthesizing these reports into a concise summary is an empathetic practice as well as a snapshot of various perspectives heading into the new year.
During the past few months, investors, managers and consultants participated in the editorial advisory board meetings for each of Institutional Real Estate, Inc’s regional publications, to discuss the most pressing issues facing the real estate investment industry. The editorial board of Institutional Real Estate Americas met in Southern California on Sept. 27–29; the editorial board of Institutional Real Estate Europe met in Portugal on Sept. 27–29; and the editorial board of Institutional Real Estate Asia Pacific met in Tokyo on Oct. 16–18. Below, the publications’ respective editors — Andrea Zander, Marek Handzel and Jennifer Molloy — discuss highlights from the regional events.
By normal standards, property deals just aren’t getting done. There’s a gap in expectation between what sellers expect to get and what buyers are willing to pay. Yet valuations are slipping in the office and retail sectors in particular, and the feeling is they have farther yet to fall.
There is consensus around the existence of a green premium, although it is important to note some studies find little correlation between sustainable characteristics and price despite others determining that green buildings can generate price premiums of more than 30 percent.
The past two years have been tough for public REIT stock prices, both on an absolute basis and relative to other equities, as rising interest rates created headwinds for real estate. An inflection point for the market is drawing near, and the set-up for future REIT outperformance is looking rosier.
All of this is encouraging for senior housing investors. Occupancy is inching toward normal levels. Demand is growing while supply remains constrained. That’s what every asset class looks for. But can the upswing continue? What is driving the demand? What is depressing the supply?
According to Morgan Stanley, the world economy is realigning to become a multipolar world with trade and supply chains becoming more decentralized and less deeply interconnected. In other words, the era of globalization is over.
Churchill Real Estate, a provider of capital market solutions with $7.4 billion of assets under management serving the U.S. residential real estate sector, announced that Mitsubishi UFJ Trust and Banking Corp. (MUTB) has acquired a minority interest in the firm.
Blackstone Real Estate Debt Strategies (BREDS), Blackstone Real Estate Income Trust (BREIT), Canada Pension Plan Investment Board (CPP Investments), through its subsidiary CPPIB Credit Investments III, and funds affiliated with Rialto Capital have entered into a newly formed joint venture with the Federal Deposit Insurance Corp. (FDIC) and acquired a 20 percent equity stake for $1.2 billion in a venture that holds a $16.8 billion senior mortgage loan portfolio retained in receivership after the failure of Signature Bank.
An investor consortium led by Oaktree Capital Management and Centerbridge Partners has plans to acquire OTG, a hospitality group that develops and operates restaurants, retail markets and food halls in airports throughout North America, for an undisclosed amount.
With demand muted and speculative construction completions persisting at a healthy rate, the industrial vacancy rate ticked higher by 60 basis points to 5.2 percent, according to Cushman & Wakefield’s fourth quarter 2023 industrial report.
Rapid expansion in North America’s advanced manufacturing sector promises to deliver significant economic impact to newly selected sites and their surrounding regions through added jobs, infrastructure improvements and substantial capital investments, according to a report by Newmark.
The median U.S. apartment asking rent fell 0.8 percent year-over-year in December to $1,964, according to a new report from Redfin.
Digitally native brand (DNB) refers to retailers that started exclusively online.
IREI.Q’s recent commitments — Americas for the February issue.
IREI.Q’s recent fundraising activity in Americas, published in the February issue.