Relative to the rest of Latin America, Mexico’s economy and potential for real estate investment have been steadily improving. A shared border with the United States, a position as a leading manufacturer of automobiles and auto parts, and the recent crackdown on organized crime have all led to Mexico’s emergence as a viable investment opportunity.
From the Current Issue
The Financial Accounting Standards Board earlier this year issued a new accounting standard for the treatment of leases under Generally Accepted Accounting Principles, or GAAP. The International Accounting Standards Board did the same for International Financial Reporting Standards, or IFRS. When the change takes effect, every lease will need to be recorded on balance sheets.
The U.S. construction industry lost nearly 2 million jobs between 2007 and 2010 as a result of the financial crisis, more than any other segment of the economy. A labor shortage impacts construction costs almost immediately.
Real estate’s recent strong performance has been due to a sustained period of slowly improving occupier market fundamentals during the long, drawn-out, bumpy economic recovery that followed the global financial crisis. With many investors hungry for recurrent income, real estate’s ability to provide it has made the asset class a focus of attention
One important facet of the millennial generation’s impact on housing is its migration patterns; the topic du jour seems to be the claim that droves of millennials are now moving to the suburbs. Although this may make for a great headline, the message is not representative of what actually is occurring in the housing market.
Asia Pacific today is home to 60 percent of the world’s population and accounts for nearly two-thirds of global economic growth. At a combined nominal GDP of $25.5 trillion in 2015 — 42 percent higher than the United States’ and expected to grow about twice as fast during the next five years (5.4 percent to 5.7 percent per year, as projected by the International Monetary Fund) — the region’s collective economy is simply too big to ignore.
I will be interviewing Blake Eagle at the upcoming NCREIF Fall Conference, which will be held in New Orleans Nov. 2–4. Those of you who joined the institutional real estate investment community anytime within the past 10 years might be scratching your heads and asking yourselves, “Who in the hell is Blake Eagle?”
Real estate risk management usually is observed only in the breach, and often too little and too late, with more smoke than light. The real estate industry, when it deigns to discuss risk, does so in a breezy, ambiguous, impressionistic and metaphorical manner that lacks operational value.
The apartment market may be reaching a peak, with signs of a slowdown, or at least a flattening, in many major markets, such as New York City and San Francisco, where apartment owners previously had a license to print money.
The big get bigger. That’s the message of the Fund Manager Survey 2016 by the National Council of Real Estate Investment Fiduciaries, in collaboration with the European Association for Investors in Non-Listed Real Estate Vehicles and the Asian Association for Investors in Non-Listed Real Estate Vehicles.
Global prime logistics rents are on the rise because of voracious demand from e-commerce fulfillment and distribution centers, according to CBRE Group’s inaugural Global Prime Logistics Rents report. Prime logistics rents increased 2.8 percent year-over-year globally in 2015, led by double-digit percentage gains in U.S. coastal markets.
The IPD U.S. Quarterly Property Index recorded a total return of 2.1 percent in first quarter 2016, according to MSCI, a decrease from 2.6 percent in the previous quarter and 3.2 percent in first quarter 2015.
In the first five months of 2016, the percentage of debt-only and debt-plus-equity funds have increased their share of the market compared with 2015, according to Institutional Real Estate, Inc.’s FundTracker database. The ratio of debt funds to equity had been falling since 2013, but we might be seeing the beginning of a reversal in that trend line.
The United States added 38,000 jobs in May, according to the Bureau of Labor Statistics, well below the expected increase of approximately 160,000 jobs. In addition, job gains during March and April were revised downward by a combined total of about 59,000 jobs.