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Investors in for rude awakening on alts returns
Pensions & Investments - September 16, 2022
Alternative investments proved to be the top-performing sectors in the wild ride of a fiscal year, but bad news is coming when managers report their actual June 30 returns this fall, industry insiders said. For example, real estate investors expect total returns to plunge to 4.4% in calendar year 2023 from an estimated 8.8% in 2022, according to the results of the Pension Real Estate Association's third-quarter consensus forecast survey of the U.S. commercial real estate market, released Sept. 13.
More warehouses are on their way to Lehigh Valley, with no end in sight. What is fueling the boom?
The Morning Call - June 3, 2022
For those who want the flow of warehouses into the Lehigh Valley to stop, some bad news: Demand is far from waning and more are on the way. Pension Real Estate Association Director of Research Greg MacKinnon told S&P that “industrial continues to benefit from the boom in online retailing, and huge demand for modern logistics space, which was only accelerated by COVID-19.”
Climate-Change Risks Get the Attention of Real Estate Investors
New York Times - April 19, 2022
They are thinking more seriously about flooding, but a lack of established standards for assessing development projects is challenging their efforts. “People are struggling with how to really measure the risk from climate change,” said Greg MacKinnon, director of research at the Pension Real Estate Association, a trade group. “The science of looking at how climate change and extreme weather can affect properties is at its infancy.”
Pension Funds Eye Higher Real Estate Allocations
Wealth Management - April 11, 2022
With asset managers projecting annual total returns north of 7.0 percent through 2026, pension funds remain bullish on commercial real estate.
CRE Investors Driving ESG Into Greater Focus
Commercial Observer - April 4, 2022
As more commercial real estate investors than ever appear to be considering environmental, social and governance (ESG) standards, experts say the post-pandemic climate could prove a watershed for the industry as executives face more scrutiny over their properties.
Investors jump in early in industrial sector
Pensions & Investments - March 28, 2022
The already hot industrial real estate sector is burning up with demand that's so fierce investors increasingly are competing to buy warehouses before they are built or leased.
War's effects could spread to global economic growth
Pensions & Investments - March 14, 2022
The key to performance across private markets portfolios — economic growth — is being threatened by the war in Ukraine, industry insiders say. "From a purely investment perspective, the question is if and how the situation in Ukraine may affect economic growth going forward. Unfortunately, I don't think the answer is clear," said Greg MacKinnon, Hartford, Conn.-based director of research at the Pension Real Estate Association, in an email.
Inflation Fears and Commercial Real Estate
Commercial Property Executive - December 15, 2021
A recent study by Greg MacKinnon, research director of the Pension Real Estate Association, found that commercial real estate performance has been good during periods of high inflation and that returns are much more closely correlated to growth than inflation.
Ivanhoe Cambridge takes home inaugural ESG award from PREA
Pensions & Investments - November 15, 2021
The Pension Real Estate Association is doubling down on environmental, social and governance issues, creating a new set of ESG awards, this time for asset owners.
Real estate associations launch diversity, inclusion benchmark
IP&E Real Assets - September 8, 2021
Seven commercial real estate (CRE) associations have teamed up to launch a global diversity, equity and inclusion (DEI) benchmark. ANREV, INREV, NAREIM, NCREIF, PREA, REALPAC and ULI have partnered to support and expand the Global Real Estate DEI Survey.
Investors hungry for industrial properties
Pensions & Investments - April 5, 2021
Before the pandemic, industrial properties were a more of a snack than a main course among real estate's primary food groups, but investors' voracious appetite for the sector may result in it occupying a larger place in their portfolios.
PREA announces first ESG fund awards
Pensions & Investments - March 26, 2021
The Pension Real Estate Association on Thursday announced the winners of its inaugural real estate investment management ESG awards, with the 2021 open-end fund award going to Hines Pan-European Core Fund and the closed-end fund ESG award to Institutional Multifamily Partners, the real estate trade organization announced.
Leading indicators of the potential long-term effects of COVID-19 on CRE
Institutional Real Estate Inc. - March 12, 2021
Martha Peyton, is the managing director of Real Assets Applied Research at Aegon Asset Management. In a Q&A with IREI, Peyton discusses how consumer behavior is informing CRE trends, how macroeconomic factors are coming in to play and the outlook for investment performance in 2021.
Strong appetite for Asia-Pacific real estate
The Asset - January 13, 2021
Institutional investors plan to stick to their investment plans for non-listed real estate in Asia-Pacific in 2021, a new survey finds. Despite the market turbulence last year, 77% of investors said the coronavirus pandemic has not changed their investment plans in the region.
Investors pile into real estate with hope of better returns
Pensions & Investments - January 11, 2021
After a three- to six-month coronavirus-induced pause, investor interest in real estate is ramping up as a source of yield in a low-interest-rate world, which is expected to continue into 2021.
Investors push alternative managers closer on ESG
Pensions & Investments - January 11, 2021
Alternative investment managers are stepping up their environmental, social, and corporate governance efforts including diversity and inclusion, pushed along by investors' increasing demands for accountability.
PREA’s All-Property Returns Forecast Brightens
National Real Estate Investor - December 14, 2020
Previously, pension funds had forecast the NCREIF All-Property Index to end 2020 in negative territory.
Advancing Women in Real Estate
Multi-Housing News - December 4, 2020
How Bell Partners President Lili Dunn is changing the female role within the industry.
Where the Value Declines Will Be the Worst
GlobeSt.com - October 28, 2020
Owners are valuing properties on pre-COVID performance, while opportunistic buyers are looking at the new reality.
This commercial property type is booming during COVID-19
yahoo!finance - October 27, 2020
Warehouses, fulfillment centers and other industrial properties are the one bright spot in the commercial real estate industry, which has otherwise been pummeled by the coronavirus pandemic.
PREA Consensus Survey Predicts a Dismal Year in NCREIF Returns
National Real Estate Investor - September 9, 2020
The third quarter of 2020 consensus survey forecast from the Pension Real Estate Association shows pension fund investors expect the overall NCREIF Property Index of total returns (NPI) to decline by 2.7 percent in 2020. However, PREA survey responders forecast the NPI will rebound to grow by 2.5 percent next year and rise by 7.3 percent in 2022.
Trade Group Shining Spotlight on Diversity
Real Estate Alert - August 26, 2020
Nareim, the trade group for commercial real estate investors, is preparing to survey firms about the gender and racial makeup of their staffs in order to measure and promote diversity in the sector.
CRE Is Starting to Solve Its Diversity Problem
GlobeSt.com - August 14, 2020
The most recent conversation around racial equality has helped wake the CRE industry up to the issue and solve it.
Retail is quickly losing its luster among investors
Pensions & Investments - July 13, 2020
Woes created by virus causing further harm to already bruised sector
Coronavirus fallout: Is commercial real estate headed for a crash?
The San Diego Union-Tribune - June 20, 2020
Miller estimates that rent collections are down 12 percent in the office sector from tenants no longer paying their leases, based on survey data from Pension Real Estate Association and other sources.
Institutional Real Estate Investors Worry About Unstable Property Appraisals: PREA
Bisnow - May 20, 2020
Pension fund investors fear the impact post-coronavirus commercial real estate appraisals will have on CRE investments, according to a new Pension Real Estate Association survey.
US open-ended property funds 'gating' distributions and redemptions, say investors
IP&E Real Estate - May 19, 2020
A survey published by the Pension Real Estate Association (PREA) on Monday revealed that 67% of US investors expect current appraisal valuations of real estate assets to “contain material uncertainties”, and a further 23.9% anticipate they will be “less accurate estimate of true value currently than under normal circumstances”.
Trade organizations focus on paths to improve diversity
Pensions & Investments - May 15, 2020
The Pension Real Estate Association's foundation in March announced a $4 million grant to Sponsors for Educational Opportunity, a non-profit aiming to offer educational and career opportunities to underserved communities, to support the development and growth of a real estate program, said Deborah Harmon, CEO and co-founder of real estate money manager Artemis Real Estate Partners.
And the malls come tumbling down
RetailDive - May 7, 2020
By the time the COVID-19 pandemic led to the temporary closure of nearly all retail, traffic at America's malls for years had already been steadily diminishing, sending vacancies up and rents down at many.
Returns At Risk For Pension Funds Invested In CRE
Bisnow - May 6, 2020
Payments from pension funds keep thousands of Americans afloat financially, but their returns have been shrinking for roughly the last decade. The fate of these funds and their commercial real estate investments are even more worrisome in the wake of the coronavirus crisis.
Planning For Survival: Holding On to the Cash You Have
Bloomberg - May 4, 2020
What to do when not a lot of money is coming in and expenses are chugging along.
Institutional Investors Eye CRE Valuations, As Market Whipsaws Continue
Bisnow - May 3, 2020
As public equities-laden pension funds reel from massive hits leveled by stock market volatility this year, commercial real estate will likely continue growing in importance for institutional investors in the long term, experts say.
What will retail’s normal look like after COVID-19?
ICSC - April 30, 2020
About 50 percent of the 1,000 U.S. malls anchored by department stores in America are vulnerable to permanent closure by the end of 2021, according to Green Street Advisors. If struggling department store anchors go out of business amid COVID-19, other troubled tenants at those shopping centers likely will activate lease clauses to shutter their stores, as well, the report said.
UNC experts: Coronavirus is speeding up changes in the economy that were already there
The News & Observer - April 28, 2020
According to a panel of University of North Carolina business and real estate professors, retail will survive the coronavirus, but it will become different along with consumer behavior.
Virus Plunged Consumer Confidence Into Death Spiral
Courthouse News Service - April 28, 2020
Overshadowing the few signs of encouragement, an index that monitors consumer attitudes showed unprecedented anxiety Tuesday.
PREA Survey: 67 Percent of Respondents Lost Deals Due to Coronavirus
Commercial Observer - April 5, 2020
The Pension Real Estate Association (PREA) conducted a survey of its members last week to examine how the institutional real estate investment industry is responding to the COVID-19 pandemic.
COVID-19 Is (Probably) Pushing Down The Value Of Commercial Property
Bisnow - April 1, 2020
The COVID-19 pandemic, which has killed more than 40,000 people around the world, is impacting the commercial real estate market in ways both large and small. Though it is hard to get a firm picture amid the uncertainty, property valuations are likely taking a hit.
Seven CRE Professionals Offer Their Takes on Work and Life While Sheltering in Place
National Real Estate Investor - March 30, 2020
We spoke to industry insiders in locations with shelter-in-place orders. Here’s how they are staying sane and productive.
Private Equity RE Funds Feel Pressure from Investors to Create ESG Policies
National Real Estate Investor - March 24, 2020
Institutional investors have been slowly increasing their mandates for environmental, social and governance requirements, forcing real estate funds to adapt.
Covid-19: Immediate and long-term effects on real estate could be substantial
IPE Real Estate - March 17, 2020
Institutional real estate investors are busy digesting the full implications of the Covid-19 pandemic and how the fallout could have long-lasting effects on the asset class.
The Show Must Go On: CRE in a Coronavirus Slowdown
RCA Insights - March 9, 2020
I spent a good part of last week at the Pension Real Estate Association (PREA) spring conference in Los Angeles. Talking with participants at the meeting and listening to the observations of Mohamed El-Erian, it is clear to me that a period of economic weakness, perhaps even a recession, is ahead. Still, even with an economic downturn triggered by COVID-19, commercial real estate investments might weather this panic without major damage.
PREA Foundation and SEO Partner to Advance Diversity and Inclusion in Real Estate
PREA - March 3, 2020
PREA Foundation, the philanthropic arm of the Pension Real Estate Association, has partnered with Sponsors for Educational Opportunity (SEO) to create a first-of-its-kind real estate training program for qualified Black, Hispanic, and Native American undergraduates. PREA Foundation has provided initial funding of $4 million to support the development and growth of the PREA/SEO Real Estate Track to train and place interns and entry- level candidates at top real estate firms. The partnership aims to increase diverse employment in the commercial real estate industry by developing a pipeline of talented students of color.
Real estate industry associations agree to global standard to measure fees and costs
Institutional Real Estate, Inc. - January 30, 2020
The principal global real estate associations, ANREV, NCREIF, PREA and INREV, have reached unanimous agreement to the new Total Global Expense Ratio, which sets out a standardized approach for measuring the total fees and costs of real estate investment vehicles, enabling investors and managers to compare vehicles across different regions. (Subscription required.)
77.5% of investors expect to increase their allocation to Asia Pacific real estate in 2020
Institutional Real Estate, Inc. - January 17, 2020
Institutional investors have signalled a greater appetite for risk in the year ahead, according to the global Investment Intentions Survey 2020, published by ANREV, INREV and PREA. (Subscription required.)
Europe and Asia Pacific ranked as top investment destinations in 2020
The Edge Property - January 17, 2020
The lion's share, or 45%, of total real estate investment capital deployed this year is expected to find its way to Europe, according to a published survey. The Asia Pacific region is likely to attract 31.9% of capital this year, significantly increasing from 19.6% in 2019.
CalPERS increases the core weighting of its $33.4bn real estate portfolio
IPE Real Estate - November 15, 2019
The California Public Employees' Retirement System (CalPERS) has increased the core weighting of its $33.4bn (€29.8bn) real estate portfolio from 78% to 85% over the past 12 months.
A hot time for those seeking the cold
Pensions & Investments - November 11, 2019
Cold storage warehouses become the new darling for real estate investors wanting next cool niche.
Foreign investors hunt for yield in New York skyline
Financial Times - September 30, 2019
Investors, managers go where the technology is
Pensions & Investments - September 30, 2019
Cell towers and data centers become hot properties for those shying away from core.
PREA Survey Continues to Show Expectations of Moderating Growth, but Sentiment Ticked Up from the Second Quarter
National Real Estate Investor - September 18, 2019
A third quarter consensus forecast survey from PREA predicts that growth on the NCREIF all-property index will move to the 4 percent range by 2021.
Pension Funds Expect Near-Term Lift in CRE Performance
National Real Estate Investor - July 3, 2019
Results from the second quarter Pension Real Estate Association (PREA) Consensus Forecast show a subtle rise in sentiment regarding total return expectations over the near term.
Craning to see the horizon: Is the bull run in U.S. real estate over
Canadian Investment Review - April 5, 2019
Real estate remains a popular asset class for institutional investors seeking to diversify their sources of real returns. As the economic cycle reaches its late stages, where can investors find the best real estate opportunities? Has core real estate in the U.S. run its course?
Half of institutional investors plan to boost real estate holdings: survey
Canadian Investment Review - January 29, 2019
Half of global institutional investors are anticipating an increase in their allocations to real estate over the next two years, according to the Pension Real Estate Association’s 2019 investor intentions survey.
Institutional Investors Plan to Come Back to Targeting Core CRE, New Intentions Survey Shows
National Real Estate Investor - January 25, 2019
A 2019 Investor Intentions Survey compiled by PREA, INREV and ANREV found institutional investors are coming back to core strategies.
LA Fire & Police considers in-house management of real estate investments
IPE Real Assets - January 22, 2019
Los Angeles Fire & Police Pensions (LAFPP) is considering setting up a direct real estate investment strategy that would be managed in-house. LAFPP noted that research by the Pension Real Estate Association shows that around 40% of pension funds globally make the direct investments.
Gap between actual and target allocations to real estate narrows dramatically, says INREV, ANREV and PREA
Property Funds World - January 11, 2019
Current average allocations to real estate increased to 10.0 per cent from 8.9 per cent in 2018, against an increase in target allocations from 10.2 per cent to 10.4 per cent, significantly narrowing the gap between the two for the first time, according to the global Investment Intentions Survey 2019, published by INREV, ANREV and PREA.
What's ahead for commercial real estate investors, and why markets like Charlotte are still attractive
Charlotte Business Journal - November 9, 2018
Greg MacKinnon, director of research at Pension Real Estate Association, said that commercial real estate generally continues to remain an attractive investment opportunity for institutional capital.
Next target for improved data analysis: real estate
Pensions & Investments - October 15, 2018
"Technology empowers our analytics," said Ashbel C. Williams Jr., executive director and chief investment officer, Florida State Board of Administration, Tallahassee, which oversees money management of the $160.4 billion pension fund. Mr. Williams was speaking Oct. 5 on a panel at the Pension Real Association's 28th Annual Institutional Investor Conference in Boston.
Real estate managers seek edge with better data, tech experts
Pensions & Investments - October 15, 2018
The new hot jobs in real estate are data scientists and technology experts as managers try to adapt to a new way of doing business.