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More opportunities are emerging given current levels of replacement cost, financing maturities and equity market valuations. Meanwhile, despite facing increasing interest rate rises, we expect transaction volume in the multifamily sub-sector to remain robust as activity is supported by attractive returns relative to risk, the ability to reset rents to market on a monthly basis, which are rising month-over-month in many markets, and a progressively more challenging for-sale housing operating environment. The post-pandemic retail recovery is a tale of two halves. You'll discover timely information related to capitalization and discount rates, and other key cash flow assumptions. . A well-established multidisciplinary leader, Greenwood has 22 years of experience in the CRE industry, advising on properties valued at more than $15 billion for various clients. Executive leadership hub - What's important to the C-suite? Non-traded real estate investment trust (REIT) sponsors continue to deploy the record levels of capital raised. PDF Overall Capitalization Rates Section 13 T - Newmark Though prices began to fall modestly in the summer, they are still near record levels nationally. Real Estate | Baker Library - Harvard Business School The investors in our survey sent a clear message: if companies take the right actions on ESG, investors will support it, but they want to be brought along for the ride, however bumpy it might be. Within the multifamily industry, Holland has taken a significant lead in policy research and the development of new multi-family product concepts focused on high-density, urban infill and mixed-use opportunities. To unlock value in deals, understand and invest in these three overlooked elements: culture, purpose and digital acumen. During this time Justin contributed to the development of Stocklands sustainability strategy, leading to a sector leader status on the Dow Jones Sustainability Index and inclusion of Stockland on the Davos 100 most sustainable organizations between 2009 and 2016. Real Estate - PwC Cyprus The whopping growth and profits property investors and managers enjoyed post-pandemic have fallen back to earth and are normalizing. Analyze real estate with greater confidence Make informed decisions and better prepare property analyses. Affordable housing developers also bemoan the fact that todays increasingly complex deals now require more underwriting from more capital sources. These patterns are playing out in how real estate professionals view prospects in the 80 markets we tracked. Jack Phillips on LinkedIn: Investor Survey - Making commercial real I really enjoy the presentations related to the survey data.". Throughout 2022, we have continued to see resiliency in the real estate deals environment amid a challenging macro set-up. {{contentList.dataService.numberHits}} {{contentList.dataService.numberHits == 1 ? - pwc real estate investor survey pdf 2022 Bold Line in the Nonprofit Press Release with ease Bold Line in the Job Report 2020 with ease Bold Line in the General Scholarship Application with ease Bold Line in the Simple Scholarship Application with ease Bold Line in the Band Scholarship Application with ease Moving forward, we expect this to continue and for experiential themes to comprise a more significant share of overall volume.. Deal activity in the industrial space declined by 18%, as compared to the red-hot comparative 2021 period, but we believe the sub-sector will remain buoyant as companies continue to play catch up in building out their logistics and storage capabilities, underpinned by the need to stockpile inventories for the ever-booming e-commerce market and capacity constrained supply chains. Real Estate Assurance, PwC Austria. Please correct the errors and send your information again. This private capital has allowed for the continued trend of large REIT M&A consolidation seen in 2021, as highlighted by Blackstones $12.8 billion acquisition of American Campus Communities in April 2022 and other large REIT acquisitions such as Cedar Realty Trust, PS Business Parks, Inc., and Preferred Apartment Communities, Inc. Emerging Trends in Real Estate: Europe 2021 - An uncertain impact. Hes an Executive Committee Member at the UT Real Estate Finance and Investment Center and an Advisory Council Member at the McCombs School of Business. Leisure travelers continue to seek out experiential and immersive hospitality, with the goal of connecting with a given destination, and they are willing to pay for it. Overall, the fundamental issue for many investors is how long the Fed will keep raising rates. Having a positive attitude towards divestitures and developing a reinvestment plan also can help companies overcome inertia. Quality of life and affordability play a big role in where people choose to live, and many of the markets that received relatively lower scores this year have inadequate infrastructure for their population size and growth. Please correct the errors and send your information again. David A. Thomas, Ph.D.,president of Morehouse College, is internationally recognized for his expertise in organizational management and higher education leadership. While ESG risk factors of the companies have been considered by investors for many years, the recent spotlight on ESG has elevated the impact of ESG in investor decision making. Meanwhile, the sameinterest rate increases that reduce leveraged returns also make real estate-linked bonds and other interest-bearing investments more compelling. The city is powered in part by the Masdar City 10MW Solar Power Plant, the first grid-connected renewable energy project in the UAE and the largest of its kind in the . The 2021 survey, conducted in March 2021 and underwritten by Holland Partner Group, reflects investor sentiment and was designed to help understand the goals, challenges, and impacts of international investments on US real estate opportunities. Security of income in non-core assets is causing concern, but 55% of investors expect to be net buyers of real estate in 2021. Take the next step forward with PwCs ESG services. But the quality of information is lacking and investors even struggle to get good information on things as fundamental as the relevance of ESG factors to the companys business model. PwCs upcoming divestiture study shows that executing a divestiture in a timely manner can help increase the chances for value creation. Executive leadership hub - Whats important to the C-suite? real estate industry. Go beyond standard reporting with commentary from a cross-section of active investors long established in the CRE industry. Through user-friendly interactive tools, Investor Survey makes it simple for you to quickly find the specific information you need. Please note: Due to rounding, percentages in the charts may not add up exactly to 100%. Future of Work and Skills Survey 2021 Press releases - PwC commercial real estate and warehouse properties, investment demand is expected to intensify in the coming months, the report notes. McIntosh has served as President of the Real Estate Research Institute (RERI) and on the Board of Directors of the National Council of Real Estate Investment Fiduciaries (NCREIF), the American Real Estate Society (ARES), and the International Real Estate Society (IRES), the Investor Council of the National Association of Real Estate Investment Trusts (NAREIT), and on the Advisory Boards of several university real estate centers. Raleigh, Phoenix and Charlotte fell in rankings this year but still remain in the top 10. Shared Services Revenue and Forecast for the Market (|FROM_ YEAR| -|TO Just Released: Viewpoint 2021 - IRR Thus far, no one is predicting that the metaverse will replace brick-and-mortar properties, but down the road, the platform could impact how we interact with physical locations. Travlos professional background is in valuation, project management and architecture. Non-AI professionals can subscribe below. On the other hand, sellers dont want to sell their assets short and then see them retraded at higher prices once the markets improve. Demand remains high, occupancy low, and the sector continues to benefit from chronically low inventory. Full article: Firm characteristics and the use of investment decision PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. For example, since many institutional investors have been under-allocated in commercial real estate, they will not need to rebalance by selling real estate assets. Between 1983 and 1986, Hackman worked at CBRE where he focused on industrial real estate brokerage in Southern California. Those who do not chart the right course now will find themselves in troubled waters.". With more than 30 years of industry experience she has acquired, developed, and repositioned portfolios valued in excess of $9 billion, and completed large scale rezoning and development projects in numerous North American cities. 2017 Prior to joining PwC in 2018, Christine worked for more than 10 years in real estate teams of leading international and national law firms. Karen Horstmann, Head of Acquisitions, Allianz Real Estate, Justin Travlos, Global Head of Responsible Investment, AXA IM Alts, Will McIntosh, PhD, Global Head of Research, USAA Real Estate, Clyde Holland, Executive Chairman, Holland Partner Group, Byron Carlock, Jr., US Real Estate Practice Leader, PwC, Revathi Greenwood, Global Head of Data & Insights, Cushman & Wakefield, Mark Zandi, PhD, Chief Economist, Moody's Analytics, Michael Hackman, CEO, Hackman Capital Partners, Becca Rushin, Director of ESG, Sustainability, and Social Responsibility, Jamestown, Christiane Conrads, EMEA Real Estate ESG Leader, PwC, Amy Erixon, Principal, President, Global Investment Management, Avison Young, Dr. David A. Thomas, President, Morehouse College, Caren Street, Principal, Squire Patton Boggs, Rodney Slater, Former US Secretary of Transportation (199397); Partner, Squire Patton Boggs, Spencer Levy, Global Chief Client Officer and Senior Economic Advisor, CBRE, Mark Gibson CEO, Capital Markets, Americas JLL, Congressman Bill Shuster, Senior Policy Advisor, Squire Patton Boggs, underwritten by CBRE and Holland Partner Group, 2022 AFIRE International Investor Survey Report: Summer 2022 Pulse, 2022 AFIRE International Investor Survey Report, 2022 AFIRE International Investor Survey Report (Members-Only Version), 2021 AFIRE International Investor Mid-Year Pulse Report, 2021 AFIRE International Investor Survey Report, Take the 2021 AFIRE International Investor Survey, ENTER YOUR INFORMATION BELOW TO DOWNLOAD THE 2022 AFTER INTERNATIONAL INVESTOR SURVEY, Byron Carlock leads PwCs US Real Estate Practice, Revathi Greenwood is the Global Head of Data and Insights for Cushman and Wakefield, Mark M. Zandi is chief economist of Moodys Analytics, Becca Rushin the Director of ESG at Jamestown, Avison Youngs Global Investment Management, Rodney Slater, former US Secretary of Transportation and current partner at Squire Patton Boggs. As a result, there are few examples of motivated sellers in the market. The Reconnecting Communities Pilot provides $1 billion for projects that remove barriers to opportunity caused by legacy infrastructure. Our analyses are based on major listed German Real Estate Companies and provide you with sound insights into developments in the real estate industry. Congressman Bill Shuster provides strategic advice and consulting to clients on a wide range of public policy matters, including transportation, infrastructure and local governments. Your contact person Reemt Lcht Senior Associate at PwC Germany Tel: +49 30 2636-4585 E-Mail Application Security and Controls Monitoring Managed Services, Controls Testing and Monitoring Managed Services, Financial Crimes Compliance Managed Services. believe the quality of current ESG reporting, on average, is good. Housing is still too expensive. Quickly evaluate contemporary and historical survey data and analyze trends across over 40 markets with an easy-to-use dashboard that puts more than 20 years of commercial real estate data at your fingertips. Quarterly analysis of various sectors of the real estate market (e.g., retail, warehouse, apartment) and markets in major U.S. cities based on investor surveys. The RealtyRates.com quarterly Developer Survey includes actual and pro-forma discount rates for 22 sell-out property types including subdivisions, PUDs, business and industrial parks, and residential and commercial condominiums and co-ops. She joined the firm after serving as Chief of Staff to Rep. Karen Bass (D-CA) where she was chief strategist for the members legislative priorities, including bills related to policing reform, re-entry services, local hiring initiatives and State Department diversification. Business portfolio review is another lever companies can pull to foster growth and build shareholder value as the economy softens. Application Security and Controls Monitoring Managed Services, Controls Testing and Monitoring Managed Services, Financial Crimes Compliance Managed Services, Key Indicator Tables and Other Data Tables, Number of Years of Historical Survey Data*. Now in its 18th edition, the report explores two shifts which are, as one interviewee puts it, 'not on the same wavelength': a cyclical downturn juxtaposed with long-term structural . It specifically considers entities whose business model is to construct and manage real estate as opposed to those entities engaged in the construction or development of real estate principally for sale or otherwise own use. While consumers in search of experiential retail therapy have moderated e-commerce pandemic highs, the sub-sector remains strong due to increased capacity demands necessary to maintain inventory levels and offset supply chain volatility. For too many people, neither for-sale nor rental housing is affordable and prices and rents have soared even further over the past year. Appraisal Institute India, Japan and South Korea. Nearly two-thirds of survey respondents plan to increase their purchasing activity in 2022. Real estate investment in 2021: global outlook | Savills Impacts Learn More About RealtyRates.com, Commercial Real Estate Mortgage Most workers are still not back in the office nearly as often as they were before the pandemic. Our PwC Real Estate Monitor provides you with a range of monthly derived Real Estate Capital Market KPIs. Another program from the Bipartisan Infrastructure Law that has significant potential impact on communities andthe commercial real estate (CRE) industry is the $65 billion designated to expand broadband access to the 30 million Americans living in areas without broadband infrastructure. With a Bachelor of Science and Master of City Planning in City Planning and Real Estate Development from the Massachusetts Institute of Technology, she is an active speaker, blogger and publisher of topical reports. So what happened? Valuation magazine is available in print and electronic formats. Emerging Trends in Real Estate 2023 Taking the long view The real estate industry is moving beyond what it perceives as cyclical headwinds i.e., rising interest rates, declining gross domestic product (GDP), sinking deal flows and taking a long-term approach to real estate assets. Byron Carlock leads PwCs US Real Estate Practice. Pressure for greater disclosure from institutional investors may be too strong for building owners to resist adaptingESG protocols, especially given the investors market size and the current capital demands. You cant walk into a financial institution now to talk about long-term themes without mentioning ESG. However, it is unclear whether capital markets are allocating resources to companies that need it for progressing towards greater sustainability. One of the biggest areas the metaverse could impact is the workplace. Learn more today! Industrial leasing remains strong with record low vacancy rates and sustained demand for high-quality, well-located Iogistics facilities. would sell their investment if a company is not showing enough action to address ESG issues. He is also a senior advisor forGrain Management. - 2023 PwC. No one knows for certain the amount of office space that will be needed for workers in the years to come. Karen is the head of acquisitions for Allianz Real Estate, and has worked to invest in more than $25 billion of unlisted institutional real estate over the past 20 years. No matter the trends, we believe companies must be flexible and adapt quickly to market changes. Although real estate capital markets are constricting, they are still open for business, investors are still buying high-quality properties, lenders will continue to lend, and companies should move forward with cautious optimism through this current cycle and prepare to adapt to quick market changes.. Heres what we learnt about how they are thinking about the economic realities of ESG. PwC Real Estate Investor Survey - Harvard Business School Between 2007 and 2009, in addition to his roles in development, Travlos was appointed National Sustainability Manager (Commercial). Editor, Investor Survey, New York, PwC US. Slater is one of the leaders of the firms best-in-class practice in Corporate Compliance Advice, ensuring best-business practices for various companies. This interactive publication considers the main accounting issues encountered by real estate entities and the practices adopted in the industry under IFRS. By submitting your email address, you acknowledge that you have read the Privacy Statement and that you consent to our processing data in accordance with the Privacy Statement (including international transfers). Each quarterly Survey issue contains:cash flow assumption data for 35 national and regional markets, Overall Cap Rate analysis, PwC Real Estate Barometer, Market pricing opinions, Valuation issues, and cash flow assumption data for three niche national markets including Hospitality, Development land, Student housing, and Self storage. Should you need to refer back to this submission in the future, please use reference number "refID" . If you change your mind at any time about wishing to receive the information from us, you can send us an email message using the Contact Us page. This yearsEmerging Trendsalso reconfirms two sometimes contradictory property market trends: Aspects of the industry are normalizing (reverting to pre-COVID patterns), while others appear to have permanently changedas the pandemic has altered how and where we use different types of properties. . Such real-world activities as conferences, trade shows, exhibitions, weddings, sporting events and other social gatherings could be enhanced with the metaverse. Required fields are marked with an asterisk(*). Intensified underwriting assumptions have resulted in investor attention becoming laser focused on high-quality, performing real assets, with portfolios being adjusted and rightsized to ensure exposure to the right kinds of assets that will support long-term, high-conviction, themes. Copyright 2022 President & Fellows of Harvard College. PDF PricewaterhouseCoopers Fourth Quarter Korpacz Real Estate Inv - Upland Holland is responsible for the Holland Partner Groups (HPG) strategic direction. They require greater disclosure and transparency, as well as enhanced consistency inreporting, in order to go beyond industry self-regulation. He is a frequent guest on CNBC, NPR, Meet the Press, CNN, and various other news programs. For subscription information, please email us-pwcsurvey@pwc.com. Carlock has experience advising major clients including corporate owners and users, developers, hospitality organizations, investors and REITs. Investors continue to rightsize their portfolios and take flight to quality and safety, while doubling down on long-term, high-conviction themes. Rising interest rates are eating into potential rates of return,making acquisition and construction debt more expensive, just when operating incomes seem destined to slide as the economy weakens. However, more firms are downsizing or not renewing their expiring leases. Although geopolitical uncertainty may weigh on investment volume in 2022, we expect the annual total will approach the record $746 billion in 2021, thanks to continued strength in real estate fundamentals and an abundance of capital targeting real estate.