Institutional Real Estate Americas
April 1, 2015: Vol. 27, Number 4Buy For $250.00 Add to Cart
On the West Coast waterfront: Big ships and diesel in the salt air mean rising property values, but keep an eye on the Panama Canal
When many investors think of “institutional property,” visions arise of trophy office towers, high-end shopping complexes or internationally recognized destination resorts. But in today’s market, add to that list plebeian waterfront properties in a growing number of port cities, including Los Angeles.
Growth potential: REITs are emerging in markets around the world, but the biggest opportunities may be yet to come
The REIT structure has been expanding across the globe and, in the wake of the global financial crisis, a number of new REIT markets are opening up in the Americas, Asia and Europe. The introduction of REIT regimes in countries such as India, Ireland and Mexico, as well as the modernization of REIT structures in countries such as Spain, has widened the opportunity set for REIT investing around the globe. And investors continue to watch China, where the potential for REIT investment is huge.
Frozen in place: Where does real estate fit in a frozen plan's investment program?
Over the past 20 years, a large part of corporate America has moved away from offering defined-benefit pension plans, and defined-contribution arrangements have become the norm. But the closure of a defined-benefit plan is not the end: The plan must keep operating for as long as there are participants still alive and benefits still to be paid. Thus, a new category of major institutional investor has come into being: the frozen pension plan.
Repositioning yesterday's buildings: Investors retrofit existing assets to appeal to today's changing workforce
Major retrofits and the repurposing of older buildings have become leading trends as urbanism and millennials drive upheaval. For companies with ambitious recruiting and expansion plans — and for real estate owners, developers and investors faced with the pressing need to upgrade older holdings to meet next-generation demand — this is a pivotal time.
A tale of two cities: London and Paris, Europe's two mega-cities, power ahead
London and Paris stand alone in Europe as the continent’s truly global cities. They are not only leaders in terms of commerce, they are also world-renowned centers for politics, sports, culture, history, tourism, transport and education. All these factors influence the unique real estate needs of the two cities, shaping the urban environment while creating large, liquid markets that are able to provide opportunities for investors throughout the cycle.
Fact or fiction? Is the long-term impact of millennials on office space overhyped?
Today, the conventional wisdom is the millennial generation is transforming real estate priorities and design. This group is going to live differently, shop differently, work differently and commute differently compared with any generation that has come before it. This month’s perspective is going to look at the “work” portion of that equation and speculate on some medium- and long-term impacts of the millennials, as well as some other specific factors relating to the office sector.
Reflections from across the pond: European investors are looking abroad, but need better data
Our conference production crew and I just returned from our Visions, Insights & Perspectives – Europe conference in Geneva. So what is the mood amongst investors across the pond these days? Generally, it’s pretty positive. Not upbeat, but positive.
Investors take big bites of the Big Apple
Whether for office towers, hotels or residential buildings, investors have been flocking to New York City.
Global capital flows into property are changing direction
Asia — especially China — has become a leading source for cross-border investment in real estate. A panel at the Association of Foreign Investors in Real Estate’s February conference took a look at Asian capital flows into the United States.
Houston, we have a problem
Falling gas prices are mostly a good thing, economically speaking; they keep a lid on inflation and put more money in consumers’ pockets. But a drop in the price of gas can put a dent in energy-focused Houston’s economy — and that should have commercial real estate investors taking notice.
CalSTRS invests nearly $1.2b in real estate
The nation’s second-largest public pension fund, the $186.4 billion California State Teachers’ Retirement System invested $1.17 billion in real estate during fourth quarter 2014, according to the system’s recent investment committee quarterly activity report.
Cap rates tighten across the United States
A competitive investment environment and attractive performance by commercial real estate have created a tight capitalization rate market. In the second half of 2014, cap rates compressed for most property types, according to a new report by CBRE.
Rising occupancies for the greatest generation
While the industry buzz might be about the millennial generation, the opposite end of the demographic spectrum also is having an impact on commercial real estate.
Data Bank: The big get bigger (and bigger and bigger and ...)
If it seems as though The Blackstone Group has been capturing an awful lot of investment dollars, that is because it has. Blackstone raised more over the past few years than any other real estate fundraiser, pulling in more than $27.2 billion across five funds from 2012 to 2014.
Take Five: A brief intermission with Tom Masthay
Tom Masthay is director – real assets, with the Texas Municipal Retirement System.