This resource guide culls sources with useful real estate information, comprising topics such as design, project financing, and regional market conditions. Source: PwC Real Estate Investor Survey; personal survey conducted by PwC during April 2021. Climate change is also addressed in the bill, which provides critical funding for building environmental resilience and expanding water availability. Zandi frequently testifies before Congress and conducts regular briefings on the economy for corporate boards, trade associations, and policymakers at all levels. 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. Our survey highlighted a number of deficiencies in current ESG reporting. 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. Copyright 2022 President & Fellows of Harvard College. Executive leadership hub - What's important to the C-suite? The commercial real estate sector has plenty of motivation to act on theenormous potential impact of unchecked climate change. As employers and their workers settle on their work preferences, many firms will continue to hold onto their offices either as a precaution in case they need the space in the future or because they could not break their lease. Between 2007 and 2009, in addition to his roles in development, Travlos was appointed National Sustainability Manager (Commercial). How can PwC help you Executive leadership hub - Whats important to the C-suite? A key barrier to moving quickly to divest, however, is inertia. Please see www.pwc.com/structure for further details. Should you need to refer back to this submission in the future, please use reference number "refID" . 24 % Since 2011, Karen has primarily focused on core and core-plus commercial investments in US gateway markets. The 2021 AFIRE International Investor Survey seeks your opinion on key challenges, opportunities, and future trends for US real estate. 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. He is also a senior advisor forGrain Management. Editor, Investor Survey, New York, PwC US. Various sources suggest that less than half of workers actuallygo into an office on a given day, at least in major markets. Meanwhile, the sameinterest rate increases that reduce leveraged returns also make real estate-linked bonds and other interest-bearing investments more compelling. The post-pandemic retail recovery is a tale of two halves. Executive leadership hub - What's important to the C-suite? Not only oil but also trade, investment, infrastructure, and tourism is the name of the business with the MENA region. Its still too soon to know if such employer demands will translate to morein-office work, as previous requests have had little apparent impact. - 2023 PwC. 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. Additionally, Slater is a founding partner of the Washington DC Nationals Baseball team and Chair Emeritus of the Washington DC Nationals Youth Baseball Academy. From December 2022 to January 2023, AFIRE invites all association members and qualified guests to participate in the 2023 Investor Pulse Survey. The insiders we interviewed suggest that somewhere between 10 and 20 percent of the office real estate stock needs to be removed or repurposed. Many investors and developers are willing to look beyond the short-term turbulence to focus on longer-term opportunities. commercial real estate and warehouse properties, investment demand is expected to intensify in the coming months, the report notes. 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. Industrial leasing remains strong with record low vacancy rates and sustained demand for high-quality, well-located Iogistics facilities. Each member firm is a separate legal entity. Go beyond standard reporting with commentary from a cross-section of active investors long established in the CRE industry. 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. Christiane Conrads is Co-Leader of the German Real Estate practice atPwC Legal. AFIRE is not engaged in providing tax, accounting, or legal advice through this publication. 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. Of the local investors included in PwC's survey, over 51% confirmed their appetite to invest in property in the coming year. "The key challenges the real estate industry will be facing in the coming year are ESG and digitalisation. Please see www.pwc.com/structure for further details. 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. Demographics and the slowing economy could also help ease the housing imbalance, but there are no easy fixes. With investor sentiment toward the sub-sector mixed, even those bullish on retail and its proven resilience, buoyed by the strong post-pandemic recovery seen in 2021 and beyond, inevitably have one eye on the economy. 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. The challenges to building new housing remain the same: restrictive zoning and building codes blocking or limiting new supply, among other roadblocks. Zandi is a cofounder of Economy.com, which Moodys purchased in 2005. Digital Edition Enjoy the interactivity and convenience of the digital edition of Valuation. 2023 Global Digital Trust Insights Survey. Global economic uncertainty, persistent inflation and rising interest rates have increased the cost of capital and overall capital market volatility. The survey shows a marked decline in business confidence for 2021, with almost half the respondents expecting a fall in profits and a quarter anticipating job losses. What trends are expected for 2023 and beyond? Investors continue to rightsize their portfolios and take flight to quality and safety, while doubling down on long-term, high-conviction themes. Real Estate Assurance, PwC Austria. Greenwood holds a Master of Business Arts from the Indian Institute of Management Ahmedabad, and a Master of Philosophy from the University of Cambridge. Masdar City is a sustainable urban development project that was launched by the Abu Dhabi future energy company Masdar in 2008, located in Abu Dhabi in the United Arab Emirates, and was designed to be a zero-carbon city by 2016. In the remaining office space, landlords will need to do a better job of delivering what tenants want. 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. Should you need to refer back to this submission in the future, please use reference number "refID" . Millions of people have taken matters into their own hands and are moving to markets, including the Sun Belt, where they can afford to buy a house. 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 . Global Consumer Insights Pulse Survey - June 2022, Ukraine: Tax, Legal and People considerations. This year's specialty property sector analysis covers Healthcare and Senior Housing. This year, we found that many investors have moved to the sidelines or to other types of assets, including equities and bonds. HPG develops, redevelops, constructs, acquires and manages multi-family communities with institutional partners in the Western United States most sought after investment markets. Our survey data and analysis is built on PwC's knowledge from 35 years of tracking and reporting on the commercial real estate marketplace. More opportunities are emerging given current levels of replacement cost, financing maturities and equity market valuations. If you are unable to login through this popup, go to https://members.afire.org to reset your password. He also Chairs the board of Retirement Villages Group. 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. 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. Erixon is a member of Avisons Executive Committee and leads its Investment Committee. These patterns are playing out in how real estate professionals view prospects in the 80 markets we tracked. The survey was . However, we do not expect a mass departure from office buildings goingforward even under the most pessimistic scenarios. 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. Todays biggest headwind to gettingdealsdone is uncertainty over where prices will settle. Our analyses are based on major listed German Real Estate Companies and provide you with sound insights into developments in the real estate industry. And most importantly, show progress against the plan. Franz Rittsteuer. Your company doesnt need to be a metaverse leader today, but you should explore the potential implications to your organization. India, Japan and South Korea. 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. She is a Certified Energy Manager (CEM) and holds a LEED AP O+M credential. However, more firms are downsizing or not renewing their expiring leases. At the same time, just a quarter (25%) of Irish CEOs are prepared to invest significantly in leadership and talent development. Required fields are marked with an asterisk(*). In addition, she leads the EMEA Real Estate ESG Team and is co-leader of the Global Legal ESG Practice. Our digital hub gives you timely data, trends and commentary to help you stay current in today's real estate industry. Last year inEmerging Trends, we said everyone wants in reflecting the deep and wide investor demand for real estate. 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. This button displays the currently selected search type. Having a positive attitude towards divestitures and developing a reinvestment plan also can help companies overcome inertia. 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. 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. Contact Details AIMA/PwC Global Distribution Survey 2017/18 Name Company Email Address 1. Survey involves institutional-grade properties. Their plan: Ride out the current slump and reposition their firms for another period of sustained growth and strong returns. Although geopolitical uncertainty may weigh on investment volume in 2022, we expect the annual total will approach the record $746 billion in 2021, thanks to continued strength in real estate fundamentals and an abundance of capital targeting real estate. Take the next step forward with PwCs ESG services. 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, 140 In 2020 there were approx. Finally, deal volume in the retail sector was 9% below the levels seen in the third quarter of 2021. Should you need to refer back to this submission in the future, please use reference number "refID" . Leisure travelers continue to seek out experiential and immersive hospitality, with the goal of connecting with a given destination, and they are willing to pay for it. 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. All Appraisal Institute professionals receive complimentary printed copies of Valuation magazine. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Valuation magazine is available in print and electronic formats. 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. PwC Real Estate Investor Survey /citations/pwc-real-estate-investor-survey 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. It is critical to appraisal work., Investor Surveys data better backs up our recommendation. He also completed the Management and Leadership in Education Program and the Harvard Institute for Higher Education at the Harvard Graduate School of Education. Learn more today! 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. He has a doctorate and a Master of Philosophy, both in organizational behavior studies from Yale University, along with a Master of Organizational Psychology from Columbia University and a Bachelor of Administrative Sciences from Yale College. During the third quarter of 2022, total volume was down 21% compared to the same period for 2021. Another hindrance is homebuilders cautious construction pacing, plus labor shortages in the construction sector, which havent returned to pre-Great Recession levels. 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. Email. There are many reasons why housing remains unaffordable. Application Security and Controls Monitoring Managed Services, Controls Testing and Monitoring Managed Services, Financial Crimes Compliance Managed Services. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Please correct the errors and send your information again. 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. Mark M. Zandi is chief economist of Moodys Analytics, where he directs economic research. 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. 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). PwC's experienced staff can help with the complex endeavor of structured finance transactions. In his role at Stockland, Justin led a team of development managers and property professionals with responsibility for underwriting, acquisition, design, planning, construction and leasing. - 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 Carlock has experience advising major clients including corporate owners and users, developers, hospitality organizations, investors and REITs. In this age of continuous disruption, divestitures can be a critical tool in transforming and reconfiguring a firm. As a recognized industry leader in real estate technology, greening strategies and smart cities, she has advised public agencies, pensions and governments on issues ranging from affordable housing to ecological urbanism. 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. As one real estate professional told us, Well look back in 10 years, and the prices that seem astronomical today will seem like a bargain.. However, Congress dropped the affordable housing components of the Bipartisan Infrastructure Law (originally part of the proposed Build Back Better Act), meaning that no additional federal help is on the way. The comparative period was particularly strong as a result of the post-pandemic surge in consumption. 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. Editor, Investor Survey, PwC US, Director, Financial Markets and Real Estate Services. Analyze real estate with greater confidence Make informed decisions and better prepare property analyses. Through user-friendly interactive tools, Investor Survey makes it simple for you to quickly find the specific information you need. The opinions expressed in AFIRE publications are those of its respective contributors and sources and do not necessarily reflect those of the publisher. The whopping growth and profits property investors and managers enjoyed post-pandemic have fallen back to earth and are normalizing. Please correct the errors and send your information again. They think such assurance should be provided by a regulated and independent expert, skilled in both the subject matter and audit methodologies and processes. 2017 Gibson also serves on the Board of Directors for Camden Property Trust. Contact us to learn more about subscription plans, features, and pricing, or to schedule a demo. - 2023 PwC. 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. No one knows for certain the amount of office space that will be needed for workers in the years to come. real estate industry. Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 . Congressman Bill Shuster provides strategic advice and consulting to clients on a wide range of public policy matters, including transportation, infrastructure and local governments. Affordable housing developers also bemoan the fact that todays increasingly complex deals now require more underwriting from more capital sources. Carlock is a CPA, a governor of the Urban Land Institute (ULI), and a member of Real Estate Roundtable, NAREIT and AFIRE. Analog zur letzten Ausgabe erwarten die Investoren . 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. 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. He is also a board member of the Harvard Club of Dallas and a board member emeritus of the Harvard Business School. 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 Real estate concerns the legal portioning up and valuation of land and a parcel's associated assets, including buildings, air rights, and mineral rights. 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. The UN report on climate change cites human activity causes. would sell their investment if a company is not showing enough action to address ESG issues. Continuing a trend from last year, non-traded REITs raised record levels of capital during the first half of 2022, with the largest share continuing to go to Blackstone ($11.6 billion), followed by Starwood ($3.3 billion), according to Stanger. Show the plan of how to get from here to there, even if the plan is imperfect. 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 . Multifamily performance continues to be robust, albeit at a slower pace. 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. 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.