March 2009 Blog Posts (57)

Reduce Office Space/Costs Wisely

Session reporting from MIPIM

Panel Discussion

It’s an Occupier’s Market: What Should Occupiers Be Doing in a Downturn?

From an occupier’s perspective, European (excluding UK) real estate has fared relatively well. Regional variation exists but overall trends include a desire for reduced space and flexible lease terms which are key to reducing costs and releasing value.

Consider all possible options to get the most out of your space. Review space… Continue

Added by Graaskamp Center for Real Estate on March 12, 2009 at 4:24pm — No Comments

A Return to Boring?

Session reporting from MIPIM

Panel Discussion

On the Road Again in Smart Investment Vehicles

While direct property investment has been around for a long time, alternative investments (funds, fund of funds, etc) are young vehicles. Because they are so new, investors don’t know how to handle the credit crisis. Alternative investments add liquidity to the market which adds volatility. Real estate is traditionally an illiquid, low volatility asset class.

In a… Continue

Added by Graaskamp Center for Real Estate on March 12, 2009 at 4:23pm — No Comments

Location, Location, Location

Session reporting from MIPIM

Panel Discussion

Hotel Investment: A Safe Haven in Real Estate Uncertainty?

The hotel sector is more volatile than the other sectors due to its effective “daily” lease terms. It’s the first to take the fall when people cut back.

Now could be an advantageous time to develop due to low construction costs, but at the same time competing assets will be so cheap that new building may not be financially viable. So look for 2-3 year… Continue

Added by Graaskamp Center for Real Estate on March 12, 2009 at 4:21pm — No Comments

Survival of the Fittest

Session reporting from MIPIM

Keynote

Innovation Is a Verb: Robert L. Newhart , CEO, Innovation Center

Charles Darwin said “it is not the strongest of the species who survive, nor the most intelligent, but the ones most responsive to change." Robert L. Newhart , CEO, Innovation Center, says change is happening now and the real estate industry will never be the same after this crisis.

Newhart challenged… Continue

Added by Graaskamp Center for Real Estate on March 12, 2009 at 4:20pm — No Comments

Flexibility Is Key

Session reporting from MIPIM

Hotel & Tourism Super Panel

Investment and Branding: the Winning Team

Most mature hotel and tourism markets are in North America and Europe, with the greatest hotel penetration in North America. Hotel chains have different brands and marketing strategies to target different market segments.

The hotel operators are not the owners of real estate but work with individual and institutional investors. In a downturn, people stay… Continue

Added by Graaskamp Center for Real Estate on March 12, 2009 at 4:18pm — No Comments

Looking for Debt to Return

Session reporting from MIPIM

Panel Discussion

On the Road Again: What’s Selling Now?

Global net acquisitions for institutions, cross-border investors and equity funds all dramatically increased in 2007. As a result, all three of these groups looked to sell in 2008. Buyers in Central Europe are looking mainly at deals below €30 million, which are rare to find.

Panelists agreed that until debt returns to the market, transactional volume will continue to… Continue

Added by Graaskamp Center for Real Estate on March 12, 2009 at 4:15pm — No Comments

U.S. Business Leaner and Meaner

Session reporting from MIPIM

Panel Discussion

Is This the Right Time to Invest in US Properties?

The U.S. government has taken an unprecedented activist strategy to address the crisis. Impact remains to be seen but recovery is expected first in southern and western states. Gateway markets like San Francisco, New York and Washington, DC are also attractive.

The bright side is that businesses are getting leaner and meaner and consumers are getting smarter.… Continue

Added by Graaskamp Center for Real Estate on March 12, 2009 at 4:14pm — No Comments

Sustainability 2.0

Session reporting from MIPIM

Panel Discussion

The Green Agenda – Maintaining the Global Momentum

Interest in sustainable and “green” building continues. Recession won’t kill sustainability; now is the time for Sustainability 2.0. Efficiency is back in style. Sustainability now needs to be about “achievable continuous improvement” while not stripping profitable businesses.

It is not about sexy buildings or cutting… Continue

Added by Graaskamp Center for Real Estate on March 12, 2009 at 4:09pm — No Comments

Tokyo: Where Investment and Development Still Rises

Session reporting from MIPIM

Panel Discussion

Tokyo: Where Investment and Development Still Rises

Panelists from government, academics, and major corporations provided a new view of Japan’s so-called ”lost decade.” The Japanese government has introduced a stimulus plan to combat the financial crisis. The government has also made major moves to market and enhance Tokyo’s attractiveness to investors and tourists. This includes green initiatives taken up by Japanese… Continue

Added by Graaskamp Center for Real Estate on March 11, 2009 at 3:37pm — No Comments

Outlook Favorable for French Real Estate

Session reporting from MIPIM

Panel Discussion

France: Identifying Opportunities in a Challenging Economic Context

The reduction in value of the Euro combined with an increasing flight to quality among investor preferences provides a somewhat favorable outlook for French real estate markets. France has been somewhat less exposed to direct effects of the real estate crisis. Speculation is that rents will continue to fall, but that opportunistic investors will… Continue

Added by Graaskamp Center for Real Estate on March 11, 2009 at 3:33pm — No Comments

Strong Return to Fundamentals in Arab States

Session reporting from MIPIM

Panel Discussion

New Horizons for the Gulf Cooperation Council (GGC) Investors: Distressed versus Opportunistic Investments

The panel provided a good picture of the current real estate market and the outlook for future investment in the GCC (comprised of six countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE). It was just 10 years ago that the GCC opened to foreign… Continue

Added by Graaskamp Center for Real Estate on March 11, 2009 at 3:32pm — No Comments

Got Cash?

Session reporting from MIPIM

Reinventing the Future: Alternative Scenarios: European Real Estate Market

From a survey by Pricewaterhouse Coopers of over 500 industry professionals on the overall state of European real estate market, general consensus is that there will be less debt and equity in 2009 than in 2008. What professionals are seeing now is a flight to quality. Governments are perceived as doing the right thing,… Continue

Added by Graaskamp Center for Real Estate on March 11, 2009 at 3:29pm — No Comments

The Era of We is Here

Session reporting from MIPIM

11:00 AM Mega Project

New Sponsors for Mega-Mixed Use: Design Trends and Financing Challenges

High-density, mixed use development is embraced as a positive form of urban renewal but can be very complex. Given current economic conditions, public and private partnerships in financing will be critical to success. Risk sharing will help; new… Continue

Added by Graaskamp Center for Real Estate on March 11, 2009 at 3:27pm — No Comments

2012: Opportunity London

Continued reporting from MIPIM from the Wednesday morning keynote with Mayor of London Boris Johnson who is a very entertaining speaker. He began by congratulating the audience for attending such an early session after the parties he saw the night before. Then he went on to explain how the 2012 Olympics will be an economic boon for the city of… Continue

Added by Graaskamp Center for Real Estate on March 11, 2009 at 3:15pm — No Comments

Green Matters

Session reporting from MIPIM

11:00 AM Property Talks

Green, Lean & Mean: How Important and Affordable Is Sustainability Today?

In the face of current economic conditions, sustainability remains very much at the forefront of the real estate development. The U.S. construction industry has embraced the green movement. A study of the U.S. commercial property market concludes that owners of “green” real… Continue

Added by Graaskamp Center for Real Estate on March 11, 2009 at 3:00pm — 1 Comment

Clever Financing Is Out

In a meeting today at MIPIM with Paul Wolfenden, director, DTZ, he believes profits in recent years have been coming out of clever finance to exploit arbitrage opportunities between financial and real estate markets. This resulted in the creation of enormous wealth that was basically reinvested with little profit-taking. This wealth has now been wiped out. We are moving back to a world more focused on the real estate itself where a few people are going to… Continue

Added by Graaskamp Center for Real Estate on March 11, 2009 at 1:17pm — No Comments

Break Out the Champagne

The champagne was flowing at MIPIM today at the signing of a deal between AVROSITI Holding and Big Architects, Ramboll Engineers and Pihl Construction on a framework agreement on Zira Island, Central Asia’s first carbon neutral master plan in Baku Azerbaijan.

This is AVROSITI’s first trip to MIPIM where they’ve… Continue

Added by Graaskamp Center for Real Estate on March 11, 2009 at 12:44pm — No Comments

An Encouraging Sign of Faith

In a meeting at MIPIM today with Mark Baillie, Macquarie Real Estate, London:

The current crisis is encouraging REITs to refocus on high yield, low risk strategies with a more focused business model. It will encourage the transfer of property ownership from the unlisted to the listed sector. In the medium term this will give us a more transparent and liquid ownership structure for properties. The recent… Continue

Added by Graaskamp Center for Real Estate on March 10, 2009 at 4:13pm — No Comments

Chance of a Lifetime: China

In another meeting today at MIPIM with Choy Soon Chua, SEB Immobilien-Investment, Frankfurt, strong advice on China:

This is a chance in a lifetime to make money. China remains a valuable long term opportunity.

Some of the pricing seen in Tokyo today is also very attractive.

Added by Graaskamp Center for Real Estate on March 10, 2009 at 4:00pm — No Comments

Opportunity Is Knocking at MIPIM

Reporting from MIPIM: Tuesday March 10th

UW staff and students attended a wide range of breakouts and meetings today at MIPIM. Overall the perspectives from speakers seem to be on where the opportunities are to be found. Here is a quick rundown on key discussions from… Continue

Added by Graaskamp Center for Real Estate on March 10, 2009 at 3:54pm — No Comments