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. However, the post-pandemic recovery is continuing and we expect it to do so, particularly given the demand from leisure travelers willing to spend on experiential hospitality, as well as the status of the sub-sector as a high-conviction theme in the portfolio of many asset managers. 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. She is a founding member of both the Sustainability and Fund Governance committees of REALpac and participates in its CEO council. RealtyRates.com: Cap Rates, Commercial Real Estate, Capitalization If you are unable to login through this popup, go to https://members.afire.org to reset your password. Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 . Emerging Trends in Real Estate 2022, undertaken jointly by PwC and the Urban Land Institute, provides an outlook on real estate investment and devel - opment trends, real estate finance and capital markets, property sectors, metropolitan areas, and other real estate issues throughout the United States and Canada. 18 bps. Please see www.pwc.com/structure for further details. Prior to joining USAA Real Estate, McIntosh was Head of Global Research for the Abu Dhabi Investment Authoritys (ADIA) real estate department, where he was responsible for developing ADIAs global real estate investment strategy. PwC's 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. 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. Real Estate Trends in Investment Migration Hubs in 2023 Non-AI professionals can subscribe below. . This publication is a widely accepted source as a foundation for investment rate support. Take the next step forward with PwCs ESG services. Will McIntosh serves as Global Head of Research forUSAA Real Estate. main questions and 37 individual investment decision techniques. 2023 Global Digital Trust Insights Survey. 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. Executive leadership hub - What's important to the C-suite? 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. A firms directors can play an important role in overcoming inertia. He is a trusted adviser to policymakers and an influential source of economic analysis. Demographics and the slowing economy could also help ease the housing imbalance, but there are no easy fixes. 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. PDF Overall Capitalization Rates Section 13 T - Newmark The government couldalso expand affordable housing production. 2017 No matter the trends, we believe companies must be flexible and adapt quickly to market changes. The degree of board governance is significant in increasing the likelihood that a company will consider divestment, the study shows. Please correct the errors and send your information again. PwC's Real Estate Survey Rent cap and regulation of the real estate market - PwC All rights reserved. Explore key findings from PwCs Workforce Hopes and Fears 2022 survey of 52,000+ workers across 44 countries and territories worldwide. Technology can play a bigger role in actually delivering homes by helping bring innovation and cost efficiencies to a sector that has been notoriously slow to change. Although real estate capital markets are constricting, they are still open for business, investors are still buying high-quality properties, lenders will continue to lend, and companies should move forward with cautious optimism through this current cycle and prepare to adapt to quick market changes.. Data is distributed amongst 13 regions encompassing all 50 states as well as Puerto Rico, Guam and the U.S. Virgin Islands. 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. Whereas past emerging trends have addressed Washingtons inaction on infrastructure spending, this year the property sector should be encouraged, thanks to the Bipartisan Infrastructure Law. He is a member of the firms Investment and Executive Committees. 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. Get timely data, trends and commentary from the authoritative source trusted for decades. 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. Metaverse properties, like any other type of real estate, can be bought, sold, purchased and leased. At the same time, just a quarter (25%) of Irish CEOs are prepared to invest significantly in leadership and talent development. PwCs upcoming divestiture study shows that executing a divestiture in a timely manner can help increase the chances for value creation. +43 699 16305167. ESG is becoming more integrated into investment decision making, with a significant majority of respondents wanting companies to embed ESG into corporate strategy. His resume also includes three years as Executive Vice President and Chief Investment Officer of Post Properties and nine years as Managing Director for Crow Holdings International. 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. 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. India, Japan and South Korea. Business portfolio review is another lever companies can pull to foster growth and build shareholder value as the economy softens. 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. How can PwC help you Gibson also serves on the Board of Directors for Camden Property Trust. While this moderation has been seen across all sub-sectors when comparing the third quarter of 2022 with the searing third quarter of 2021, deal activity is actually up compared to the same periods in 2020 and 2019 by 123% and 6%. Investor Survey helps make it simple. 2021. 2023 Global Digital Trust Insights Survey. 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 . Infrastructure spending remains a top trend, but this year, it's on a positive note. Real estate data can be complex. Editor, Investor Survey, New York, PwC US. consider ESG risks and opportunities an important factor in investment decision making. This has led some leading tech firms and investment banks, for example, to issue ultimatums for a return to the office. He formed HCP on his core Midwestern beliefs in Value, Ethics, Hard Work and Results. He serves on the boards ofDTE Energy,Commonfund,Vanguard, andYale Corporation. Valuation Magazine - Appraisal Institute These inflows are likely to increase as new players enter this space. During his tenure, Congressman Shuster was one of the most respected Members of Congress while serving in the US House of Representatives. The Bank of Ghana, reacting to inflationary pressure, raised the monetary policy rate (MPR) to 22%, and banks' primary reserve requirements moved from 12% to 15%. While every program promises to touch some part of the built environment, several have especially significant impacts for cities, along with the potential to advance economic and environmental justice by investing in traditionally underserved communities. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. In his current role, Justin is responsible for the development and deployment of AXA IM Real Assets responsible investment strategy across AXA IM RAs real estate and infrastructure businesses. 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. 55 1021 PwC Real Estate Investor Survey /citations/pwc-real-estate-investor-survey 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. Senior Manager, Financial Markets and Real Estate Services. Like any new technology, the metaverse has potential risks, including data privacy and cybersecurity risks. (PDF) Education Catalog (PDF) International. An annual subscription to Investor Survey includes four quarterly data releases, plus access to PwCs annual Emerging Trends in Real Estate published each fall. All rights reserved. There are many reasons why housing remains unaffordable. Each member firm is a separate legal entity. He is a frequent guest on CNBC, NPR, Meet the Press, CNN, and various other news programs. He is also a senior advisor forGrain Management. 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. One way to tell that is by understanding who is responsible for it and how they are incentivised. 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. Thought leadership at AFIRE is positioned at the critical intersection of real estate market insights, investing, geopolitics, sustainability, research, analytics, and technology. Insurance can protect building owners against damage loss, but not against demographic or investor sentiment changes. Thomas has served as dean of Georgetown Universitys McDonough School of Business and on the faculty of Harvard Business School and the Wharton School of Business at the University of Pennsylvania. HPG develops, redevelops, constructs, acquires and manages multi-family communities with institutional partners in the Western United States most sought after investment markets. Learn about our International Resources; Global Investor ESG Survey 2021 Press release | PwC Ireland Even if we experience an economic downturn, as many economists expect, thats not projected to provide significant relief. McIntosh has served as President of the Real Estate Research Institute (RERI) and on the Board of Directors of the National Council of Real Estate Investment Fiduciaries (NCREIF), the American Real Estate Society (ARES), and the International Real Estate Society (IRES), the Investor Council of the National Association of Real Estate Investment Trusts (NAREIT), and on the Advisory Boards of several university real estate centers. Caren Streetis a seasoned Capitol Hill counsel with 14 years of bipartisan, bicameral and leadership experience. The top fundamental reason: a chronic undersupply of properties, especially at affordable prices. 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. - 2023 PwC. Throughout 2022, we have continued to see resiliency in the real estate deals environment amid a challenging macro set-up. Travlos professional background is in valuation, project management and architecture. Real Estate | Baker Library - Harvard Business School The survey was . 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. Source: PwC Real Estate Investor Survey; personal survey conducted by PwC during April 2021. Non-traded real estate investment trust (REIT) sponsors continue to deploy the record levels of capital raised. However, more firms are downsizing or not renewing their expiring leases. Source: Refinitiv (LSEG), Dealogic, and PwC Analysis. While some executives remain optimistic about a voluntary return to office, the reality through the second half of 2022 is one of a slower comeback as employees favor increased flexibility, productivity gains and a better work-life balance. We have received your information. Heres how leaders can answer the bell. 24 % Hackman and his wife Caroline commit both time and resources to many local and national philanthropic organizations. 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. Owners and asset managers must undertake cost-effective physical improvements to protect their buildings. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. The challenges to building new housing remain the same: restrictive zoning and building codes blocking or limiting new supply, among other roadblocks. Justin Travlos is currently Global Head of Responsible Investment at AXA IM Real Assets. The post-pandemic retail recovery is a tale of two halves. Reinforced in this years Emerging Trends is the dominance of magnet markets, many of which are in warmer Sun Belt regions. Real Estate Industry: Commercial Real Estate - University of Michigan Appraisal Institute Insurance is not a substitute for building resilience. In this age of continuous disruption, divestitures can be a critical tool in transforming and reconfiguring a firm. Please see www.pwc.com/structure for further details. Why capabilities are more important than ever for M&A. On the other hand, sellers dont want to sell their assets short and then see them retraded at higher prices once the markets improve. ", - Real Property Tax Administrator, US Office of Tax & Revenue, "No one is better at walking through the information than you guys. Your contact person Reemt Lcht Senior Associate at PwC Germany Tel: +49 30 2636-4585 E-Mail What trends are expected for 2023 and beyond? Thomas is the recipient of Washington Business JournalsMinority Business Leader of the Year award and the National Executive Forums Beacon Award and was named one of Atlantas 500 Most Powerful Leaders byAtlanta Magazine. Hospitality was not far behind, with a 21% decrease for the third quarter of 2022 as compared to 2021. 2017 Forecast methodology notes The forecast for the value of institutional-grade real estate assets is based on a model that utilises economic activity as measured by GDP, based on Another program from the Bipartisan Infrastructure Law that has significant potential impact on communities andthe commercial real estate (CRE) industry is the $65 billion designated to expand broadband access to the 30 million Americans living in areas without broadband infrastructure. This makes it vital that companies tell their ESG story transparently and in a balanced way. Additionally, Slater is a founding partner of the Washington DC Nationals Baseball team and Chair Emeritus of the Washington DC Nationals Youth Baseball Academy. Another main focus of her advice is in the area of ESG. Though population growth slowed sharply during the pandemic, demand for rental housing is rising from the many young adults eager to start their own households after moving back in with their parents during COVID. This yearsEmerging Trendsalso reconfirms two sometimes contradictory property market trends: Aspects of the industry are normalizing (reverting to pre-COVID patterns), while others appear to have permanently changedas the pandemic has altered how and where we use different types of properties. The insiders we interviewed suggest that somewhere between 10 and 20 percent of the office real estate stock needs to be removed or repurposed. The world on the verge of the third wave. Viewpoint 2021 also examines trends from the economy, housing, capital markets, interest rates and employment, exploring how these trends will affect commercial real estate markets in the year ahead. TheAtlanta metro area scored higher in this years survey, jumping to the number three-ranked spot from number eight last year. But despite these headwinds, we expect the commercial market to perform well, especially in the short-term. Pressure for greater environmental, social and governance (ESG) investing disclosure by real estate owners and investors is also intensifying. Congressman Bill Shuster provides strategic advice and consulting to clients on a wide range of public policy matters, including transportation, infrastructure and local governments. 1. After working as the Director of Corporate Finance for KPMG in London from 2003 to 2012, she moved to the U.S., where she most recently held the position of Americas Head of Research at Cushman & Wakefield. Moreover, insurance coverage is becoming increasingly expensive in high-risk locations, and, in some cases, its difficult to obtain at any price. Each quarterly Survey issue contains:cash flow assumption data for 35 national and regional markets, Overall Cap Rate analysis, PwC Real Estate Barometer, Market pricing opinions, Valuation issues, and cash flow assumption data for three niche national markets including Hospitality, Development land, Student housing, and Self storage. 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. You need to log in to use the bookmarking feature. PwC | Investor Survey - What's included : PwC | Investor Survey PwC's experienced staff can help with the complex endeavor of structured finance transactions. 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. Learn more today! +43 676 833772933. They top the Emerging Trends Markets to Watch standings, while the number of markets in cold-weather climates in the Northeast and Midwest decline in ranking. It specifically considers entities whose business model is to construct and manage real estate as opposed to those entities engaged in the construction or development of real estate principally for sale or otherwise own use.