A high schooler with a smartphone has immediate access to more thoughtful real estate investing information than Sam Zell had 30 years ago.
This deck (selections posted below) is a great example...
Nuveen's views on real estate risks and opportunities.
Here's what we found to be most interesting, in a nutshell:
-- Inflation is down from recent peaks, a global trend.
-- But inflation is still running hotter than targets in most places.
-- Major rate hikes are in the past but continued volatility seems likely.
-- CRE returns have stabilized, driven by income growth.
-- Transaction volumes bottomed earlier this year.
-- Denominator effect bounceback? Investors are now underweight CRE.
-- Lower rates are closing the CRE bid-ask gap.
-- Interest in CRE is rising as pricing becomes more attractive.
-- CRE lenders get paid for risk in a higher-for-longer environment.
-- But legacy issues (especially in office) create headwinds.
-- CRE prices are at a turning point.
-- Industrial and retail values are gaining.
-- Office properties in CBDs are still struggling.
-- U.S. economy’s growth is resilient, but it’s slowing down.
-- Lots of dry powder; cap rate expansion creates new opportunities.
-- High-quality, newer office buildings are fine; other office profiles aren't.
-- Medical offices are strong thanks to demos and outpatient surge.
-- Retail, especially grocery, is positioned to outperform.
-- Industrial is still healthy despite more vacancy/supply and slower demand.
-- Apartment demand is slightly outpacing new supply.
-- Single-family rentals continue to see strong growth.
-- Sustainability is a big focus, with increasing net-zero pressure.
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