Phrases like “logistics is the new retail”, “the death of retail” and other similar statements are now omnipresent. With retailing in the grave, it is now time to crown the logistics sector.
From the Current Issue
Energy savings of €1 million per year certainly sound appealing. That’s what PATRIZIA Immobilien AG said that it was aiming to achieve when it announced in November 2017 that it had converted its entire real estate portfolio in Germany to run on renewable energy.
This time last year, the real estate investment community was reeling from the Brexit and Trump results; bond yields were rising, pricing in political risk, particularly around the French presidential election; and real estate cap rates were pushing to new historic lows, raising questions about whether they remained good value.
In a changing real estate world, traditional offices and shopping centres are now classed among the riskiest assets, left behind by urbanisation and changing consumer habits. Political certainties are being eroded rapidly, returns are low and risk seems latent due to low yields and sluggish economic growth.
According to Mike Restuccia, an independent member of Institutional Real Estate, Inc’s board of directors who also happens to audit banks for a living, the Federal Deposit Insurance Corp and Office of the Comptroller of the Currency here in the United States jointly conduct an ongoing survey series in their effort to create an early warning system to detect potential changes in, among other things, bank underwriting practices.
The concept of speed is especially difficult for property investors to wrap their heads around. Solid as a rock, they remain in exactly the same place for decades and decades, surviving even the most stormy of times.
For international real estate investors, the main draw in a country is usually its capital city — this is where the powerful machinery of both government and business is located, and where the long-term, creditworthy tenants of prime office properties are based.
Investment managers continued to roll out a variety of new fund offerings during Q3 2017. A total of 51 commingled funds were launched in the quarter, seeking to raise approximately $20.5 billion (€17.24 billion).
Europe’s retailers are under pressure on a number of fronts, and this is also putting the owners of the retail properties that they occupy under pressure.
The retail sector may have fallen out of favour with real estate investors but research from Savills suggests that the recent restructuring of retail parks across Europe is improving perceptions and driving investors back to the prime retail warehousing sector.
Three firms announced final closes in November 2017, raising more than €1.5 billion in equity commitments.
In the early 1950s, the US Air Force had a bit of a problem. A new generation of jets kept crashing for no apparent reason, which is not exactly what you want, or need, at the best of times.