New Report from Colliers: Six Key Themes That Will Shape Commercial Real Estate in 2016
Real estate continues to grow its appeal
Sentiment towards real estate remains positive. More than half of the respondents with multi-asset portfolios said that they would increase their real estate allocations in the next 12 months into 2016. The US will be a preferred destination for global capital.
- Liquid markets still preferred
Global gateway cities (London, Paris, New York, San Francisco, Tokyo and Sydney) remain the primary target for global cross-border investors over the next 12 months. These markets have the advantage of offering large lot sizes and volume of stock that appeal to global mandates.
- Seeking value
2016 will see a greater emphasis on secure income and asset management to drive performance. For some investors ‘overcrowded’ core markets are being seen for longer-term investments rather than short term trading.
- Risk appetite moderated
International investors remain confident. While economic volatility and geopolitical events may have a short-term impact, long-term strategies remain driven by market fundamentals.
- Local partnering
Our survey results show that more global investors will partner with local expertise and acquire platforms as a means of placing substantial amounts of capital with confidence.
- Return of debt
In 2016 more investors will use debt to finance their acquisitions, despite increased interest rates in some territories. This suggests that the equity phase of the cycle is giving way to the debt phase.
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