The hospitality sector continued to recover in the second half of 2022, driven by ever-increasing leisure demand through the summer months as well as the return of individual and group business travel. Michael Hackman is the Chief Executive Officer of Hackman Capital Partners, which he founded in 1986. Real Estate Monitor - PwC The lag in return to office and its impact in driving subleasing, combined with record lease expirations, means sub-sector supply continues to outstrip demand creating a challenging environment, particularly for older assets. 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. Prior to forming Hackman Capital, Hackman began his real estate career in 1978 at Majestic Realty, where he worked in land acquisition, development and leasing of industrial buildings in Southern California. In the face of uncertainty on many fronts, we believe that commercial real estate deal activity in 2023 will continue to display its proven resiliency. 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. 2017 Executive leadership hub - What's important to the C-suite? Please see www.pwc.com/structure for further details. Hospitality was not far behind, with a 21% decrease for the third quarter of 2022 as compared to 2021. Single asset sales are more desirable than portfolio sales, given that the recovery remains uneven across different markets, with limited-service properties accounting for more than half of transactions. real estate industry. Please see www.pwc.com/structure for further details. Investors said they want to engage with companies on their ESG journey, but in the absence of real action and transparent communication through reporting, they will take action too using their power to vote and, if necessary, selling their investment and walking away. PDF PricewaterhouseCoopers Fourth Quarter Korpacz Real Estate Inv - Upland PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. 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. 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. Nearly two-thirds of survey respondents plan to increase their purchasing activity in 2022. Senior Manager, Financial Markets and Real Estate Services. In the face of macroeconomic headwinds, including inflation and rising interest rates, commercial real estate is continuing to demonstrate resilience as investors adapt and seek new and innovative ways to take flight-to-quality as well as flight-to-safety. Their plan: Ride out the current slump and reposition their firms for another period of sustained growth and strong returns. We expect capital availability to decline in the near term, though the denominator effect may not force sales as much as in typical downturns. Zandi earned his Bachelor of Science from the Wharton School at the University of Pennsylvania and his doctorate at the University of Pennsylvania. The challenges to building new housing remain the same: restrictive zoning and building codes blocking or limiting new supply, among other roadblocks. Slater is one of the leaders of the firms best-in-class practice in Corporate Compliance Advice, ensuring best-business practices for various companies. The Inflation Reduction Act adds spending for combating climate change and building energy security. Investor Survey helps make it simple. Should you need to refer back to this submission in the future, please use reference number "refID" . The quarter close - fourth quarter 2021 - PwC 2017 HPG develops, redevelops, constructs, acquires and manages multi-family communities with institutional partners in the Western United States most sought after investment markets. Demand remains high, occupancy low, and the sector continues to benefit from chronically low inventory. Download Free PDF. A key barrier to moving quickly to divest, however, is inertia. Your contact person Reemt Lcht Senior Associate at PwC Germany Tel: +49 30 2636-4585 E-Mail Regional Mall CBD Office Warehouse Apartment Q2 2021 Q1 2021 Q2 2021 Q1 2021 Q2 2021 Q1 2021 Q2 2021 Q1 2021 Discount Rate (IRR)a Each member firm is a separate legal entity. 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. We have received your information. Before becoming the CEO of JLL Capital Markets, Americas, Gibson was a founding partner of HFF LP, having joined HFFs predecessor firm, Holliday Fenoglio & Company, in 1984. He is a trusted adviser to policymakers and an influential source of economic analysis. The mood among the real estate professionals we interviewed for this yearsEmerging Trendsis cautious optimism. Our survey data and analysis is built on PwC's knowledge from 35 years of tracking and reporting on the commercial real estate marketplace. Macroeconomic uncertainty may lessen leisure demand in some segments, but continued expansion of business traveler demand is expected to compensate. No matter the trends, we believe companies must be flexible and adapt quickly to market changes. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. He is a graduate of the School of Mortgage Banking of the Mortgage Bankers Association of America and served as a Faculty Fellow. The first half of her career was oriented toward closed-end value-add and opportunistic fund investments in office, retail and multi-family assets across continental Europe. Should you need to refer back to this submission in the future, please use reference number "refID" . Hackman has 40 years of experience in the acquisition, development, management and disposition of real estate assets. He is also a senior advisor forGrain Management. Our survey data and analysis is built on PwCs knowledge from 35 years of tracking and reporting on the commercial real estate marketplace. All rights reserved. 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. M&A Outlook 2023 - Deals - Insights and publications - PwC PDF Emerging Trends in Real Estate 2022 - Ross School of Business PDF Lancaster Commercial & Industrial Real Estate Market Presentation Integrating ESG into your strategy helps manage risks and opportunities. Survey shows cap rates are declining nationally One important sign that the national commercial real estate market is in full recovery mode is the fact that capitalization rates are. She shaped the legislative agenda with a focus on economic issues, such as infrastructure development, Opportunity Zones and federal budget priorities. 2017 Moving forward, we expect this to continue and for experiential themes to comprise a more significant share of overall volume.. Private Equity Accounting, Investor Reporting and Beyond takes the discussion around private equity accounting to the next level beyond the basic private equity accounting principles identifying areas of importance where things can go wrong and delving into the intimate details of the different sub-asset classes such as real estate funds, Your company should vet potential partners and work with someone you trust as you outline a long-term plan. Still, poorly located, outdated and technologically obsolete assets will continue to struggle the challenge being how to rightsize oversupply and repurpose these assets. 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. 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. (PDF) Education Catalog (PDF) International. Cap Rates | The Journal Record You'll discover timely information related to capitalization and discount rates, and other key cash flow assumptions. You cant walk into a financial institution now to talk about long-term themes without mentioning ESG. He is also a board member of the Harvard Club of Dallas and a board member emeritus of the Harvard Business School. Its important that companies respond to the call for more comprehensive and reliable reporting on ESG risks and opportunities to build trust with their investors and other stakeholders. . Jose Pellicer, Global Head of Investment Strategy, M&G Real Estate 12:00 - 12:20 Keynote - Europe's Emerging Trends and London's Position A discussion of ULI and PwC's latest Emerging Trends Europe report delving into the predictions of Europe's real estate market and in . Take the next step forward with PwCs ESG services. She serves on the Ontario Board of the Nature Conservancy of Canada, the ULI Responsible Property Investing Council, the Carbon Impact Initiative, and MITs Educational Council. 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. Business portfolio review is another lever companies can pull to foster growth and build shareholder value as the economy softens. Please correct the errors and send your information again. commercial real estate and warehouse properties, investment demand is expected to intensify in the coming months, the report notes. Applying IFRS for the real estate industry - 2021 edition - PwC Emerging Trends in Real Estate: The Global Outlook 2022: PwC PDF Overall Capitalization Rates Section 13 T - Newmark An annual subscription to Investor Survey includes four quarterly data releases, plus access to PwCs annual Emerging Trends in Real Estate published each fall. HVS | Hotel Values Moderate, Cap Rates Stable The industrial sector remains strong, as does retail, in parts. That solved the issue for many early movers, but prices and rents have been rising much faster in many of these Zoom towns, reducing their affordability. In contrast, portfolio sales volume decreased by 43%, from $12.5 billion to $7.1 billion. Get timely data, trends and commentary from the authoritative source trusted for decades. At the same time, just a quarter (25%) of Irish CEOs are prepared to invest significantly in leadership and talent development. He is a past Trustee for The Willows School in Culver City and Windward School in Los Angeles. Thailand Infrastructure News - PwCthe two developed SEZs and attract Newly constructed and redeveloped assets with strong ESG credentials are expected to win out, with older assets experiencing headwinds. All rights reserved. An additional $3 billion was included within the Inflation Reduction Act of 2022, which furthers this initiative. 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. Each member firm is a separate legal entity. In response, developers and retailers continue to double down on omnichannel strategies, including click-and-collect, curbside pickup and ship-from-store. However, it also provides funding for broadband internet, power, environmental remediation and resilience, among other programs. Make informed decisions and better prepare property analyses with cash flow data that helps you understand what investors and owners are thinking across property types and geographic areas. 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. +43 676 833772933. PDF Economic Indicators | PwC Real Estate Investor Survey, Q2 2021 24 % Pressure for greater environmental, social and governance (ESG) investing disclosure by real estate owners and investors is also intensifying. Our sector and market-wide Global M&A Industry Trends: 2023 Outlook reveals strong pockets of activity. She leads environmental, social and governance (ESG) initiatives through the Jamestown Green program and the Jamestown Charitable Foundation. Prior to his tenure as Transportation Secretary, Slater served as Administrator of the Federal Highway Administration, where as the agencys first African-American Administrator in its century-long history he oversaw the development of an innovative financing program that resulted in hundreds of transportation projects being completed. Learn about our International Resources; Heres what we learnt about how they are thinking about the economic realities of ESG. Amy Erixon foundedAvison Youngs Global Investment Management practice, which is active across all major and select specialty property types in Canada, the US, Mexico, Germany and UK on behalf of major institutional investors. He also Chairs the board of Retirement Villages Group. Real estate data can be complex. 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. consider ESG risks and opportunities an important factor in investment decision making. The metaverse could also be useful in helping firms upskill their employees at a time when everyone is hunting for talent. The PwC Real Estate Investor Survey Hanley Wood Indicators Mortgage Rates . Executive leadership hub - What's important to the C-suite? According to 325 investors worldwide, the majority of which were self-identified active asset managers making investments for the long term, ESG after being a topic of conversation for years is gaining even more traction. Appraisal Institute PwC's Real Estate Survey January 2021- Malta's resilient real estate industry under spotlight 58% of total respondents intend to purchase property 16% of respondents are planning to rent a residential property 33% of total respondents intend to purchase a property to move out their parents home 21% The metaverse can enhance collaboration, complement the physical office and improve the overallworkplace experience which could be extremely beneficial given that more workers are demanding flexible work arrangements. Just Released: Viewpoint 2021 - IRR 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. Presented By: High Real Estate Group LLC February 10, 2021 Welcome 8:15 - 9:15 AM Presentation 9:15 - 9:30 AM Questions and Answers 2 Agenda: High Real Estate Group C&I Council Mark Fitzgerald President & Chief Operating Officer Michael Lorelli Sr. Vice President Commercial Asset Management Bill Boben Sr. Vice President Sales/Leasing Powell Arms Create custom graphs with an interactive tool that helps make valuation analyses and reports easier for investors, lenders, appraisers, assessors, asset managers and other real estate professionals. All Appraisal Institute professionals receive complimentary printed copies of Valuation magazine. 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. PwC's Real Estate Survey The opinions expressed in AFIRE publications are those of its respective contributors and sources and do not necessarily reflect those of the publisher. Most workers are still not back in the office nearly as often as they were before the pandemic. Various sources suggest that less than half of workers actuallygo into an office on a given day, at least in major markets. He also shares responsibility for the strategic direction, growth, and client activities of JLLs global capital markets business as a member of the firms global capital markets board. This publication is a widely accepted source as a foundation for investment rate support. Managements objective in a review is to allocate capital to the most promising businesses and consider whether it is appropriate to divest less attractive units. This could open up real estate investing to a new pool of investors, as buying virtual properties is much less expensive than purchasing physical properties. The top fundamental reason: a chronic undersupply of properties, especially at affordable prices. By 59 % The rental supply of existing flats in Berlin has fallen between 2019 and 2020. Revathi Greenwood is the Global Head of Data and Insights for Cushman and Wakefield with overall responsibility for the data strategy for the company. The hotel industry is recovering, apartments are doing very well and rents are rising in all sectors driven by lack of supply and inflationary pressures. Developer Survey. Real Estate | Baker Library - Harvard Business School 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. 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. PwCs upcoming divestiture study shows that executing a divestiture in a timely manner can help increase the chances for value creation. May 4, 2021 Take the 2021 AFIRE International Investor Survey Real estate concerns the legal portioning up and valuation of land and a parcel's associated assets, including buildings, air rights, and mineral rights. Valuation magazine is available in print and electronic formats. Its grounded and unbiased; you are just publishing the facts as presented to you., "Thanks for producing quality reports, maintaining quality research and providing unbiased analyses. Carlock earned his Bachelor of Business Arts at Harding University and participated in the International Asian Studies Program at The Chinese University of Hong Kong as a Rotary Scholar. 2022 U.S. Investor Intentions Survey | CBRE David A. Thomas, Ph.D.,president of Morehouse College, is internationally recognized for his expertise in organizational management and higher education leadership. Executive leadership hub - What's important to the C-suite? Zandi frequently testifies before Congress and conducts regular briefings on the economy for corporate boards, trade associations, and policymakers at all levels. Aspects of the industry are normalizing (i.e., reverting closer to their pre-COVID patterns), while others appear to have sustained permanent shifts to a new normal, following the pandemic-induced changes in how and where we use different types of properties. While higher costs of capital add to the overall deal consideration, inflationary pressures also affect the replacement costs of assets, leading to increased competition for existing assets as investors look to deploy dry powder. The investors in our survey made it clear that they expect ESG to be an integral part of corporate strategy. Hackman and his wife Caroline commit both time and resources to many local and national philanthropic organizations. Commercial real estate deal activity moderated in the third quarter of 2022 compared to the same period in 2021, with the volume of asset-, portfolio- and entity-level transactions decelerating, primarily as a result of macroeconomic uncertainty, resulting in buyers and sellers unable to agree on pricing. Like any new technology, the metaverse has potential risks, including data privacy and cybersecurity risks. Your company doesnt need to be a metaverse leader today, but you should explore the potential implications to your organization. The outlook for well-located assets is positive as sustained demand signals that consumers are continuing to point their wallets at high-quality, experiential retail therapy. Affordable housing developers also bemoan the fact that todays increasingly complex deals now require more underwriting from more capital sources. - 2023 PwC. The post-pandemic surge in commercial real estate activity has shown signs of moderating. In the end, perhaps the most effective solution is the most obvious: The industry must construct more housing that is affordable to more people. Its very risky to tempt fate by assuming that an extreme weather event will not happen on your watch. Analyze real estate with greater confidence Make informed decisions and better prepare property analyses. 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 . 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. Multifamily performance continues to be robust, albeit at a slower pace. Going forward we expect retail to be a bifurcated story with high-quality, well-located assets winning out as older, technologically obsolete assets face headwinds. Finally, deal volume in the retail sector was 9% below the levels seen in the third quarter of 2021. There are many reasons why housing remains unaffordable. That means being upfront about the prospects for long-term value creation and the ways in which the company manages risks, including unexpected ones. Byron Carlock leads PwCs US Real Estate Practice. Real Estate Assurance, PwC Austria. Explore key findings from PwCs Workforce Hopes and Fears 2022 survey of 52,000+ workers across 44 countries and territories worldwide. - 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 The commercial real estate sector has plenty of motivation to act on theenormous potential impact of unchecked climate change. He is chairman of the Board of Directors of the Squire Patton Boggs Foundation, which promotes the role of public service and pro bono work in the practice of law and the development of public policy. Scale | PropTech (2023) Our 2023 PwC Scale PropTech Programme Cohort has launched and we're excited to be working with our 6 chosen scale-ups to help solve important problems for the Real Estate industry. Those who do not chart the right course now will find themselves in troubled waters.". Each member firm is a separate legal entity. 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. Prior work also included serving as Chief Investment Officer for Fund Evaluation Group (FEG) and Professor of Finance and Dean of the College of Business at the University of Cincinnati. We are delighted to welcome companies spanning the globe from the UK to Australia and the US to drive innovation within the sector. They require greater disclosure and transparency, as well as enhanced consistency inreporting, in order to go beyond industry self-regulation. This sentiment is having an impact on the real estate industry. India, Japan and South Korea. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. - 2023 PwC. McIntosh is a Fellow of the Homer Hoyt Institute. Should you need to refer back to this submission in the future, please use reference number "refID" . Outside of the office sector, which is lagging behind as employers allow increased remote work flexibility to keep and attract talent, commercial real estate fundamentals continue to strengthen. 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.