Energy JPMorgan Chase takes steps to finance clean energy and sustainable development The Wall Street bank JPMorgan Asset Management has joined the climate campaign, Climate Action 100+,…
Real Estate Google plans $10b investment in U.S. offices and data centers in 2020 Google has announced its 2020 expansion plans, investing $10 billion in offices and data centers…
Real Estate Record year for U.S. net-lease investment as capital targets secondary markets U.S. net-lease investment reached record highs in 2019, with investors increasingly attracted to opportunities in…
From the Current Issue And then there is the hotel sector: A hot property type that is poised to get even hotter as tourism surges by Mike Consol Ask any experienced real estate operator or investor about the four main property types and the following will roll effortlessly off their tongues: office, industrial, retail and residential. Noticeably missing is hotel real estate. Though it would be a stretch to insist the four major property types be expanded to five to accommodate hotels, it is worth noting that hotel fundamentals have never been better — despite a formidable onslaught from Airbnb, VBRO and other members of lodging’s shared economy. What’s more, there is every reason to believe hotel economics will get better yet, as tourism (especially from Asia) continues to explode, with the United States being one the chief destinations.
From the Current Issue Profile: Richard Hough, CEO of Silvercrest Asset Management by Mike Consol When it comes to IPOs, the thrill is gone. What was once a process full of the romance and excitement of becoming a publicly traded company on Wall Street, but that has largely dissipated as the process has become too expensive and painful for many companies to bear. Underwriting eats up 4 percent to 7 percent of gross proceeds, according to research by PwC, plus an additional $4.2 million of offering costs such as the required financial assessment followed by the roadshow to visit and pitch institutional investors on the opportunity. Once public, CEOs estimate the annual cost of being public between $1 million and $2 million per year. Then, for many companies, there is the relentless short-term pressure exerted by shareholders to keep share prices aloft. Add the ill-fated IPOs of companies such as WeWork and it all helps explain why in 1996 there were more than 7,000 domestic companies listed on U.S. stock exchanges compared with fewer than 4,000 today.
Infrastructure EPA allocates $2.7b for water protection projects The U.S. Environmental Protection Agency (EPA) recently announced the availability of $2.7 billion for State…
Real Estate Why invest in data centers? Data centers are a hot topic amongst institutional investors these days but there are still…
Real Estate Landmark Properties acquires 2,289-bed community, largest single asset in student-housing sector Landmark Properties has acquired Sol at West Village, a 2,289-bed, mixed-use student housing community serving…
From the Current Issue For renewables to boom, better storage technology must bloom by Mike Consol Many are envisioning a future where renewable forms of energy supplant fossils fuels and finally give the environment relief from carbon pollutants and the threat of oil and gas eventually running out. And many investors are betting billions on renewables generating lots of financial returns in addition to energy. Witness JLL’s recent declaration that it sees investment opportunities in the “surging demand” for alternative sources of energy.
From the Current Issue The new economics of sustainable real estate by Marc DeLuca Sustainability has been gaining a lot of attention, with youth climate strikes and global activism making headlines. It is also increasingly informing the investment decisions of investors. The commercial real estate industry has done a considerable amount of work to construct and upgrade commercial structures so they are more sustainable. Because so much has been accomplished to this end, it might seem as though only marginal gains in energy reduction and cost savings lie ahead. On the contrary, substantial economic gains can still be achieved.