The fundamental story of healthcare real estate investment begins with demographics — everyone knows the U.S. population is getting older — but it doesn’t stop there. Both supply and demand fundamentals support the investment thesis. “Clearly, the aging of the U.S. population is a demographic shift that is driving the long-term positive outlook we have […]
Reimagining, rebuilding and repurposing real estate has always played a key role in investors’ ability to create value. In today’s post-COVID world, however, the ability to change a property’s use has taken on a new level of importance. And it is adaptive reuse, specifically, that is rapidly becoming a central element of the repurposing toolkit. […]
When rebalancing adds value, it is equated with tactical skill; when it loses value, it is excused as strategic discipline. The opportunities for improving this process are apparent, but reconciling long-term investment strategy with short-term market movements is challenging. Markets are currently experiencing a period of exceptional volatility, which will inevitably push asset allocations away […]
It’s difficult to think of a more turbulent time in real estate than the two and half years since the onset of the global COVID-19 pandemic. The pandemic prompted real estate investors to reconsider some of the foundational assumptions undergirding markets. Investors and occupiers quickly soured on major gateway metros that drove growth nationally during […]
Broadly speaking, people view real estate as an inflation hedge. It’s based on the principle that income from rent collected from commercial properties tends to track with consumer prices. But it is important to go deeper and look at the data. An October 2021 study from CBRE Investment Management showed rents in the United Kingdom […]
In August, an official from the U.S. Federal Reserve said the central bank — which has already raised interest rates three times from its near-zero levels at the beginning of 2022 — will keep increasing them until it sees compelling evidence that inflation is falling. To counteract the United States’ worst period of inflation in […]
Responsible guardianship of the environment is important for the future of the planet and for human flourishing. Current environmental challenges include limiting greenhouse gas emissions that cause climate change, which damages the environment and spawns rising sea levels. Climate risk also includes heat stress, water stress, extreme rainfall and flooding. In addition to harming actual […]
In today’s rising interest rate environment, there are uncertainties on the horizon for commercial real estate investment. The concern surrounding higher cost of debt capital, tighter underwriting, lower prices and disappearing deals is growing, and investors are reassessing their investment strategies. Overall, though, signs are pointing to another strong year. Post-COVID recovery and infrastructure investment […]
It has been nearly 14 years since the collapse of Lehman Bros. on Sept. 15, 2008. In response, total returns posted by the NCREIF Fund Index – Open End Diversified Core Equity (ODCE) declined 10 percent in 2008 and another 29.7 percent in 2009. Ever since, ODCE has posted positive returns for 12 consecutive years […]
The effects of the COVID-19 pandemic will continue to be felt in the office sector. To stay relevant, office investors must adapt to meet tenants’ changing space needs, said Rich Gottlieb, president and COO of Keystone Development & Investment, in an interview with IREI. “There’s no doubt the office market has taken a hit in […]
The NCREIF Property Index (NPI) achieved a quarterly total return of 3.23 percent in second quarter 2022, which is down from 5.32 percent in the first quarter but still above the NPI’s average historical quarterly of 2.25 percent. The quarterly return consisted of 0.97 percent from income and 2.26 percent from appreciation. Appreciation is after […]
Fundraising activity in 2022 is off to a slow start following a record-setting fourth quarter in 2021. A total of 34 private equity real estate funds recorded final closings during second quarter 2022, raising an aggregate $19.3 billion, according to the IREI.Q database. It’s the lowest fundraising volume since third quarter 2017 when 32 funds […]