Institutional Open-Ended UK Balanced Funds Are Not The Same

Following the UK’s EU referendum, the surge in redemptions in a number of UK property funds, targeted at the retail investor, has heightened concerns that the UK institutional open-ended funds may be about to experience substantial capital outflows.  We believe such a scenario is improbable and we set out below our rationale in arriving at

Asian Outbound Investment Reaches New Highs

One of the clearest trends in the global commercial real estate market in recent years has been the strong growth in capital flows from Asian countries, both cross-border within Asia and to other parts of the world. Although the slowdown in global real estate investment activity in Q1 2016 impacted the value of Asian cross-border investment as well, 2015 was a record high year for Asian outbound

Brexit Begets “Risk-off” Approach, but Will it Last?

Right up until June 23, the tale of 2016 was one of stabilization. The volatility and risk seen in H2 2015 seemed to be abating and the financial markets were returning to what we had started to think of as normal. June 24 changed all that as it was revealed that the U.K.—against expectations—had voted to leave the European Union. The initial reaction has focused around

Blip or Trend?

The opening months of 2016 are an object lesson in the extent to which the commercial real estate investment market has gone global. Commercial real estate investment activity dropped back in nearly all the world’s major markets in Q1, causing the global aggregate to fall to US$183 billion, down 19% over Q1 2015. (Exchange rate fluctuations had a slight impact on this; at a constant exchange rate, the year-over-year

Is the End of the Cycle Drawing Near?

The first quarter of 2016 saw a large, globally correlated drop in real estate investment activity. Confidence has since improved, but after five years of strong growth in investment turnover, investors are asking: Is the end of this cycle drawing near? Probably not, for two reasons: The first is economic growth. Figure 1 shows real estate capital flows alongside total global capital flows. Real estate investment

Puerto Rico’s Fiscal Crisis and its Impact on Capital Markets

• Puerto Rico missed $911 million in bond payments on July 1, including $779 million in payments of general obligation debt. • On June 30, President Obama signed legislation sheltering Puerto Rico from creditor litigation and allowing it to restructure its debt using U.S. courts in exchange for establishing a federally appointed control board with

Measuring the Tide: Part II

Bullish or bearish? Inspired or discouraged? Concerned or confident? As a follow up to last month’s Measuring the Tide post, we re-polled approximately 100 of our U.S. real estate executives and clients on their views on several aspects of the market. The results, listed below, were taken in late June, prior to the Brexit vote. We

Going Home Again

Thirty years ago, I attended a sleep-away camp in the Pennsylvania mountains known as Pocono Highlands Camp. Last

U.S. Office Investment Momentum Still Lags 2015

Both CBD and suburban office acquisitions volumes in the U.S. remain below last year’s levels. The total acquisitions volume is off 17%. CBD is down 10%; suburban 23%. The most important category for judging momentum is “individual sales.” Portfolio and company (entity) buying activity is certainly very important for the marketplace and for office pricing,

New Disclosure Rules to Impact Chinese Insurers

The China Insurance Regulatory Commission (CIRC) recently issued a series of new rules regarding audit and disclosure policies