The year 2016 was definitely one of transition for Brazil, a country once touted along with the other BRIC members as the next big thing.
From the Current Issue
Global property investors are keeping a close eye on the world’s major central banks and interest rates, and especially the Federal Reserve, which in December 2016 raised the target range for the federal funds rate by 0.25 percent and publicly posited three interest-rate hikes through 2017. The Fed maintained the target range in its January meeting.
If there was one takeaway lesson for 2016, it was “conventional wisdom” is not necessarily predictive. Like any period of change, this one will offer both challenges and opportunities for global investors (and for bookmakers). Here are 10 predictions for 2017.
Commercial real estate has had an almost uninterrupted run of increasing values since bottoming in the wake of the global financial crisis in 2010. Acquisition yields have persisted at historical lows for several quarters, and many question how long the asset class can remain priced to perfection.
Representing $525.3 billion in market value, the quarterly NCREIF Property Index (NPI) total return has moderated for two years as the real estate cycle has matured. The total return was 1.73 percent in fourth quarter 2016, down from 1.77 percent in the previous quarter and 2.91 percent in fourth quarter 2015.
When it comes to creating enduring partnerships with real estate limited partners, the annual investor meeting can be a critical tool that is sometimes overlooked.
The time funds are on offer has continued to creep down, according to Institutional Real Estate, Inc.’s FundTracker database.
The trouble with economic forecasting in general, and real estate forecasting in particular, is that it’s pretty good at telling you what’s likely to happen … until it isn’t. And it is particularly bad at forecasting unanticipated turns in the road, which, of course, is one of the main reasons we attempt to forecast in the first place.
As companies have restructured their global supply chains in response to e-commerce and changing consumption patterns, distribution and fulfillment centers have become more sophisticated than ever.
The U.S. student-housing market had its seventh consecutive year of annual rent growth in 2016, and inventory has increased by 56.3 percent over the past 10 years, according to a Kroll Bond Rating Agency report summarizing current trends in the industry.
The Korean Teachers’ Credit Union and TH Real Estate have agreed to establish a new joint venture, where the parties will contribute up to a combined $1 billion to invest in U.S. commercial real estate loans.
In its annual tally of global real estate secondaries activity, Landmark Partners tracked 99 closed or under contract real estate secondary transactions in 2016. Aggregate net asset value at the time of sale totaled approximately $5.01 billion, according to Landmark Partners.
The healthcare property sector performed well in 2016, but policy uncertainty regarding the Affordable Care Act has some watching the sector warily.
The Houston office market saw a turbulent 2016, according to Newmark Grubb Knight Frank’s Houston 4Q16 Office Market research report. Because the Houston office market relies heavily on energy industry occupiers, the office market has struggled since the price of oil dropped two years ago.
The U.S. industrial sector absorbed 63.6 million square feet of space in fourth quarter 2016, which propelled net absorption for the year to a record-setting 282.9 million square feet, according to Cushman & Wakefield.