Lately, I have heard quite a lot of talk about how it is time to get out of the market, asset prices are overinflated and the cost of capital too cheap (the root of asset inflation). Indeed, asset prices are historically expensive; the cost of debt, as well as equity, is historically cheap.
From the Current Issue
Google Inc. has announced it will achieve 100 percent renewable power in 2017, a goal initially set in 2012, for its office properties (housing 60,000 employees) and its data centers around the world.
The Canada Pension Plan Investment Board has agreed to acquire a 50 percent interest in a diversified portfolio of prime office and retail properties in New Zealand from Canada’s Public Sector Pension Investment Board. PSP Investments will continue to hold the remaining 50 percent interest.
Miami continues to be a top destination for foreign investors in U.S. property. Ponte Gadea Biscayne, an affiliate of Ponte Gadea Group, has acquired the downtown Miami office tower located at 200 S. Biscayne Blvd. for approximately $517 million.
One thing is coming through loud and clear from PwC’s and ULI’s 2017 Emerging Trends in Real Estate survey for the United States and Canada: It all comes down to strategy, risk tolerance, return requirements and access to deals.
As 2016 winds down, data from Institutional Real Estate, Inc.’s FundTracker database indicates investment totals are down from their 2015 heights. In the first 11 months of 2016, funds holding final closings have raised about $85 billion, while 2015 ended with about $110 billion raised by funds closing that year.
Donald Trump was elected president, and that has thrown many of the safe predictions about 2017 up in the air. Many commercial real estate investors are reacting the way they often do to uncertainty: They are taking a wait-and-see approach.
Even in a time of abundant caution, industry participants identified several investment strategies for commercial real estate investors. One of those strategies is focusing on markets that have had above-average economic growth.
The early-stage, real estate technology venture capital space is a varied and complex arena, with the big real estate company aspirants all opting for different approaches.
With Donald Trump winning the U.S. presidential election, it seems anything is possible — even government policy returning to economic relevance. But will we see government policy play a decisive role in the direction of the economy in the near term?
Economists can provide a framework for determining the long-run movements in interest rates. Empirical research augmented by historical evidence shows nominal interest rates do converge toward some equilibrium rate, or “natural” real rate of interest adjusted for expected long-run inflation over time.
Muslims make up roughly 25 percent of the world’s population, and 40 percent of the world’s fastest-growing countries have large Muslim populations. This rapidly growing demographic has propelled Islamic finance and Shariah-compliant investing from a relatively esoteric asset class to today’s global industry.
There is a lot I could say about Michael Humphrey, but I thought I’d dedicate this space to enable others to help paint a picture of the kind of individual he was, as well as the impact he had on the investment and investment management communities he served so well over the years.