What are the trends in real estate investing?
Panelists share leading trends in the industry, including the reallocation from stocks and bonds to real estate as well as the evolution of foreign investment.
Brandon Weber: One of the reasons that Hightower is where we're at is there's a mega-trend that we're seeing which is just as like great reallocation of assets out of stocks and bonds into property and we're now a global company, so we're seeing it in a lot of different markets. And so when you see like the institutional investor's portfolio now contains about 9 to 10 percent of real estate, 20 years ago is about two to three percent. PWC just put out a report, they're expecting that to go up to 15 to 16 percent of a typical institutional investor's portfolio being allocated to real estate. We're talking about trillions of dollars of capital flow being pushed into our asset class, which will be fascinating. It's resulted in much larger portfolios, bigger funds, more complexity, pan geography, pan kind of strategy owners. And then you stick on top of it the United States being kind of the last bastion of security in that global flow.
David Schwarz: There's been a real evolution in education of a lot of these foreign investors where four or five years ago when they started coming to this market, it was all about yield. They want core, they wanted the best assets and they said they wanted to buy it, New York or gateway cities at a six cap - was never going to happen. So [what] we're seeing now I think is a lot of institutional investors from internationally coming and looking for development. So a lot of these investors who say we’ll take development risk if we can be in the New York, San Francisco, DC, the big gateway cities, and actually take risk and look for more all-in return versus purely just yield as they may have been looking for a few years ago.
Recently EisnerAmper’s Real Estate group hosted the Fourth Annual Real Estate Private Equity Summit. The event brought developers, investors, owners and operators together to discuss what’s happening on the real estate front.
With the economy in an active investment phase in debt and restructured products across the capital stack, panelists discuss opportunities they see, including transitional assets, different geographies, and non-traditional banking resources.
Panelists describe their outlook on New York and other gateway cities, looking across geographies, asset classes, and property types, as well as slowing job growth or just continued modest growth in general and retail and residential vacancies.
EisnerAmper Partner Lisa Knee asks the panel what their investors are looking for, the tools their investors are using to evaluate the market, the balance of supply and demand in real estate, and how they are planning the real estate cycle.
Panelists discuss the process of bringing in foreign capital, the criteria that foreign investors look to in U.S. properties, and what kind of investments they are looking to make.
EisnerAmper Real Estate Private Equity Summit panelists Kenneth Weissenberg, Jonathan Kaufman Iger, Leslie Himmel and Phil Watkins discuss whether the market is in a period of correction, and what’s ahead for vacancies and pricing.
With a slight decrease in sales volume and a slowdown in the land market, Real Estate Services Partner Lisa Knee asks panelists to share the key buying and selling trends on the horizon, including insights on residential product.
Panelists discuss the impact of Brexit, 421A and EB-5 on foreign investment in the United States, and the effects of that capital on development in gateway cities - there's a strong trend of non-US capital continuing to come and invest in the US.
Real Estate Services Chair Ken Weissenberg speaks with panelists on the topic of where capital is coming from in today’s market, how accessible it is for new projects, and the reality of debt and equity chasing real estate.