. Gibson also serves on the Board of Directors for Camden Property Trust. All rights reserved. HPG develops, redevelops, constructs, acquires and manages multi-family communities with institutional partners in the Western United States most sought after investment markets. PwC's 2021 Irish CEO survey revealed that, for eight years running, Irish business leaders are more concerned about skills shortages (75%) than their global counterparts. No matter the trends, we believe companies must be flexible and adapt quickly to market changes. There are many reasons why housing remains unaffordable. From December 2022 to January 2023, AFIRE invites all association members and qualified guests to participate in the 2023 Investor Pulse Survey. David A. Thomas, Ph.D.,president of Morehouse College, is internationally recognized for his expertise in organizational management and higher education leadership. Prior to joining Jamestown in 2012, Rushin worked as a local government consultant for Clark Patterson Lee, where she served as Community Development Coordinator and Sustainability Commission Staff Liaison for the City of Dunwoody. Rodney Slater, former US Secretary of Transportation and current partner at Squire Patton Boggs, helps clients integrate their interests in the overall vision for the transportation system of the twenty-first century a vision to promote a safer, more efficient, environmentally sound and sustainable worldwide transportation infrastructure. One way to tell that is by understanding who is responsible for it and how they are incentivised. We noted in a prior trend that many hyper-growth markets have been unable to keep up with building critical infrastructure, particularly related to transportation. 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. Contact Details AIMA/PwC Global Distribution Survey 2017/18 Name Company Email Address 1. Global economic uncertainty, persistent inflation and rising interest rates have increased the cost of capital and overall capital market volatility. Building owners and developers should leverage a host of new incentives from governments, including billions of dollars of incentives in the Inflation Reduction Act, to help buildings hit these aggressive climate goals. They require greater disclosure and transparency, as well as enhanced consistency inreporting, in order to go beyond industry self-regulation. 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. Metaverse properties, like any other type of real estate, can be bought, sold, purchased and leased. In the end, it may be hard for employers to put the toothpaste back in the tube, as there appears to be a shift inconsumer behavior. The listed REIT industry continues to consolidate given growing importance of scale, growth and capital considerations. Preferring to protect buildings through insurance rather than upgrading them to better withstand extreme weather may be more expensive in the short term. 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. Enter your email address and password associated with your membership to log into AFIRE.org. Contact us to learn more about subscription plans, features, and pricing, or to schedule a demo. Almost all of this years survey of top-ranked real estate markets are in faster-growing southern and western regions and away from the coasts. He led Toyotas Safety Advisory Panel, currently serves an Independent Monitor for Fiat Chrysler Automobiles, and was recently selected by NHTSA to serve as the Independent Monitor of FCA. Investors are taking notice: ESG information is growing in importance for their investment analysis and decision making. In the fourth quarter of 2021, President Biden signed the Infrastructure Investment and Jobs Act, which signals a long-term federal commitment to secure and modernize existing infrastructures, and support a transition to a clean economy. Greenwood holds a Master of Business Arts from the Indian Institute of Management Ahmedabad, and a Master of Philosophy from the University of Cambridge. 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. Please see www.pwc.com/structure for further details. 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. Under his strategic direction, Morehouse has launched its first online degree programs and amplified its position as a center of intellectual discourse and social engagement. (PDF) Education Catalog (PDF) International. At the same time, just a quarter (25%) of Irish CEOs are prepared to invest significantly in leadership and talent development. On the other hand, sellers dont want to sell their assets short and then see them retraded at higher prices once the markets improve. Analyze real estate with greater confidence Make informed decisions and better prepare property analyses. Analysis for real estate audit committees and executive teams to remain updated on the most recent trends in the industry. Travlos joined AXA IM Real Assets in June 2018 as UK Head of Asset Management from Stockland, one of Australias largest diversified listed property companies, where he was Regional Development Manager. The 2022 pulse survey, conducted summer 2022 and underwritten by CBRE and Holland Partner Group, reveals institutional insight and intent towards future real estate investment. Demand remains high, occupancy low, and the sector continues to benefit from chronically low inventory. McIntosh is a Fellow of the Homer Hoyt Institute. Real Estate Tax, PwC Austria. The PwC Global Investor ESG Survey 2021, captures the views of 325 investors from around the world, who are primarily active asset managers and analysts with investment firms, investment banks or brokerage firms, including some participants based in Ireland. +43 699 16305167. Prior to joining Avison, she was CEO of IGRI, a full service development and investment firm that built the first LEED certified projects across Canada. Our digital hub gives you timely data, trends and commentary to help you stay current in today's real estate industry. Take the next step forward with PwCs ESG services. Meanwhile, the office sub-sector remains characterized by the push-pull battle between employers and employees as companies seek higher-quality assets to lure workers back to the office. 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). Christiane Conrads is Co-Leader of the German Real Estate practice atPwC Legal. Raleigh, Phoenix and Charlotte fell in rankings this year but still remain in the top 10. Decades of commercial real estate real estate survey data in a streamlined digital hub. Zandi is on the board of directors of MGIC, the nations largest private mortgage insurance company, and is the lead director of Reinvestment Fund, one of the nations largest community development financial institutions, which makes investments in underserved communities. Zandi is a cofounder of Economy.com, which Moodys purchased in 2005. Heres what we learnt about how they are thinking about the economic realities of ESG. Still, poorly located, outdated and technologically obsolete assets will continue to struggle the challenge being how to rightsize oversupply and repurpose these assets. However, it is unclear whether capital markets are allocating resources to companies that need it for progressing towards greater sustainability. This sentiment is having an impact on the real estate industry. The 2021 AFIRE International Investor Survey seeks your opinion on key challenges, opportunities, and future trends for US real estate. Demographics and the slowing economy could also help ease the housing imbalance, but there are no easy fixes. Nevertheless,the US Securities and Exchange Commission is forging ahead, as evidenced in its May 2022 ESG disclosure regulations. Security of income in non-core assets is causing concern, but 55% of investors expect to be net buyers of real estate in 2021. Digital Edition Enjoy the interactivity and convenience of the digital edition of Valuation. However, more firms are downsizing or not renewing their expiring leases. Infrastructure spending remains a top trend, but this year, it's on a positive note. Executive leadership hub - Whats important to the C-suite? Go beyond standard reporting with commentary from a cross-section of active investors long established in the CRE industry. Source: PwC Real Estate Investor Survey; personal survey conducted by PwC during April 2021. Industrial leasing remains strong with record low vacancy rates and sustained demand for high-quality, well-located Iogistics facilities. 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. Developer Survey. We expect capital availability to decline in the near term, though the denominator effect may not force sales as much as in typical downturns. She leads environmental, social and governance (ESG) initiatives through the Jamestown Green program and the Jamestown Charitable Foundation. He is frequently quoted in major business publications and is the host of CBREs podcast The Weekly Take, the most heavily downloaded podcast in commercial real estate. Required fields are marked with an asterisk(*). Our sector and market-wide Global M&A Industry Trends: 2023 Outlook reveals strong pockets of activity. Executive leadership hub - What's important to the C-suite? She is a Certified Energy Manager (CEM) and holds a LEED AP O+M credential. Conrads has more than 10 years of experience in this dynamic field and has led interdisciplinary teams on ESG strategy projects and ESG due diligences, among others. PwC Real Estate 2020: Building the future 7 1 Prudential Real Estate Investors: 'A Bird's Eye View of Global Real Estate Markets', 2012 update, February 2012. Recognized by the industry for excellence in urban planning and design, Clyde Hollands work has received numerous awards from the Urban Land Institute, the National Multi-Family Housing Council, and Multi-Family Executive. He also serves as a Trustee and Executive Member of the Jewish Federation of Los Angeles. Like any new technology, the metaverse has potential risks, including data privacy and cybersecurity risks. She leads an agile team of data analysts and scientists who are responsible for creating strategies, roadmaps, policies, and procedures that guide all decisions related to data. Such carrots are designed to help the industry meet the increasingly challenging set of environmental regulations. . He formed HCP on his core Midwestern beliefs in Value, Ethics, Hard Work and Results. Business portfolio review is another lever companies can pull to foster growth and build shareholder value as the economy softens. 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 . Some policy options would help: notably, lowering the many obstacles to housing construction, decreasing rising regulatory costs (stemming from fees and changes to building codes) and expediting approvals. As CEO of Capital Markets, Americas, for JLL,Mark Gibsonleads nearly 2,000 capital markets professionals across the United States, Canada, and Latin America. Carlock is a CPA, a governor of the Urban Land Institute (ULI), and a member of Real Estate Roundtable, NAREIT and AFIRE. He also completed the Management and Leadership in Education Program and the Harvard Institute for Higher Education at the Harvard Graduate School of Education. The post-pandemic surge in commercial real estate activity has shown signs of moderating. 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. Transaction volume in the industrial space has continued the momentum seen in previous quarters as demand continues to exceed supply for well located assets, underpinned by the sustained e-commerce surge and the need to stockpile inventories as a result of ongoing supply chain constraints. Valuation magazine is available in print and electronic formats. As Chairman of the House Transportation and Infrastructure Committee, Congressman Shuster spearheaded legislation aimed at strengthening US infrastructure, including the Fixing Americas Surface Transportation Act, the Passenger Rail Reform and Investment Act, the Protecting our Infrastructure of Pipelines and Enhancing Safety Act, the Federal Aviation Administration Reauthorization Act of 2018 and multiple Water Resources Developments Act and authorizations of the US Coast Guard. Executive leadership hub - Whats important to the C-suite? 2017 Should you need to refer back to this submission in the future, please use reference number "refID" . The report is a follow up to the AFIRE 2021 International Investor Survey Report, released April 2021, and details evolutions in real estate investor sentiment over the past six months, alongside emergent outlooks for risk management in the US real estate. 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. Demand outpacing supply, compounded by new asset delivery constraints due to input cost inflation, has been seen as rents continue to climb. McIntosh received a doctorate in Finance and Real Estate from the University of North Texas, as well as a Master of Business Arts in Real Estate and a Bachelor of Science in Business Education, both from Eastern Kentucky University. He is also a senior advisor forGrain Management. - 2023 PwC. The Reconnecting Communities Pilot provides $1 billion for projects that remove barriers to opportunity caused by legacy infrastructure. Greenwood started her career in India in consulting with a local firm and later moved to London where she worked at Citigroups European Investment Banking Division. Why capabilities are more important than ever for M&A. Download the report (PDF, 9.18MB) Emerging Trends in Real Estate - An uncertain impact Contact us Angus Johnston UK and EMEA Real Estate Industry Leader, Partner, PwC United Kingdom Tel: +44-7710-344-040 Email Gareth Lewis ETRE Leader, Director, PwC United Kingdom Tel: +44-7932-970-728 Email His public service career was devoted to fostering, promoting and expanding economic opportunities across the country. The comparability that comes from having a globally aligned set of non-financial reporting standards also would increase trust in the numbersand that would go a long way with investors. Newly constructed and redeveloped assets with strong ESG credentials are expected to win out, with older assets experiencing headwinds. 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. Real Estate Assurance, PwC Austria. He has written or co-written three books and more than 100 scholarly articles, book chapters, cases, and teaching notes. Its very risky to tempt fate by assuming that an extreme weather event will not happen on your watch. The UN report on climate change cites human activity causes. Business leaders are closely monitoring the potential impact on the real estate industry of themetaverse a digital platform that may profoundly change how businesses and consumers interact with products, services and each other. PwC Real Estate Investor Survey: 1Q 2019 4.50% - 7.00% 5.66% NKF Self-storage Investor Survey: 3Q 2019 4.50% - 8.50% 5.60% Source: Compiled by NKF "A method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, either by dividing the net income . Erixon is a member of Avisons Executive Committee and leads its Investment Committee. 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. Many factors can create inertia, including entanglements, emotions and cognitive biases. . PwCs 2021 Global investor survey on ESG was based on an online survey of 325 investment professionals across 43 territories and 40 in-depth interviews with investors and analysts in 11 territories representing combined assets under management (AUM) of more than US$14 trillion. How can PwC help you Reflecting slower coastal growth, Seattle exited our top 10 list, but Miami climbed up to secure the number seven ranking. Street also served as Policy Director for CBC Chair Cedric Richmond, current senior advisor to President Biden. Investment in the real estate sector grew from 14.6% in 2020 to 26.5% in 2021, while construction activity also showed signs of growth (measured in m3) increasing from 5.9% in 2020 to an impressive 45.9% in 2021 .