Institutional Real Estate Americas
July 1, 2013: Vol. 25, Number 7Buy For $225.00 Add to Cart
Waiting for Godot: Uncalled capital now totals more than $70 billion and counting; what are investors and managers waiting for?
Pension funds are having a hard time placing their money in real estate. They are nowhere near hanging themselves but, like the characters in Waiting for Godot, they are waiting, waiting for something to happen. According to 2013 Tax-Exempt Real Estate — the latest annual investor survey conducted jointly by Institutional Real Estate, Inc. (IREI) and Kingsley Associates — a whopping $72.5 billion of U.S. tax-exempt real estate investors’ money has yet to be placed.
Tight squeeze: Latin America is on the fast track to urbanization, and that means opportunities (and caveats) for real estate investors
For decades, a misery belt has surrounded expanding Latin American cities as people from rural areas flocked to urban centers.
About performance: It may be a numbers game, but can we rely on numbers? Not really. Here
One of the things you will never see in an Institutional Real Estate, Inc. publication or database is manager or fund performance numbers (except, of course, for index numbers).
Caution: That is the operative word for real estate during 2013
When asked what the 2013 outlook for real estate looks like, the easy option might be to say very much the same as 2012. But the reality is that it is difficult to see how this year will be significantly different from the last. The market is likely to continue to be characterized by risk aversion, the hunt for income and wealth preservation. Caution is the right way to approach real estate investment in 2013, with no imminent improvement in the economic environment anticipated.
Mexico drifts into an economic slumber
The Mexican economy had become so resurgent — with a growth rate that was outstripping Brazil — some observers took to calling it the Aztec Tiger. Unfortunately, Latin America’s second-biggest economy now seems to be losing its roar.
Blackstone puts its massive new investment fund to work
With $13.3 billion burning a hole in its pocket, The Blackstone Group has gone on a spending spree.
Middle Eastern wealth funds make shift away from West
Sovereign wealth funds based in the Middle East are not as enamored with U.S. and European real estate investments these days.
REITs move into single-family neighborhoods
With REITs extending into all kinds of niche real estate categories, it was just a matter of time before they rallied around single-family homes after scooping up a bonanza of low-priced houses in the tattered wake of the economic collapse.
REITs lose momentum in May
U.S. REITs underperformed the broader equity index in May, with equity REITs posting a –5.93 percent return versus the S&P 500 Index’s positive gains of 2.34 percent, according to the FTSE NAREIT U.S. REIT Index.
Interest rates chill fixed-income managers
A mass movement of funds totaling $1 trillion might be afoot if anxiety about interest rates gets any worse.
Walk this way: Research indicates that investing in
After World War II, the automobile dictated the shape of suburban development in U.S. metropolitan areas. Our strong reliance on cars shaped cities and buildings throughout the 1950s, 1960s, 1970s and well into the 1980s and 1990s, running counter to leading urbanists’ views of the virtues of pedestrian-friendly streetscapes and development. Why did this occur? There are many reasons:
The rate escape: Quantifying the race between the inevitable rise of interest rates and need for earnings growth
Interest rates remain at historically low levels. The question that everyone is asking is: when will interest rates go up? It is widely believed that at some point within the next couple of years the Federal Reserve will ease off its third round of quantitative easing, and as a result, interest rates will rise closer to the historical average.
Advice for the ages: Why assisted living is the most attractive investment opportunity among senior housing alternatives
While not as operationally intensive as a hotel, the operating attributes of assisted-living facilities are massively important to financial success. In particular, understanding your clients and their needs, as well as recognizing the importance of a satisfied employee base, will improve all outcomes over time.