C&I 2015 Report: What Does Capital Want?

Posted on February 9, 2016 in Viewpoints by admin

(for a full report, click here) In the collegiate atmosphere of University of Chicago, set against the glimmering Chicago River, NAREIM held it’s annual Capital Raising and Investor Relations meeting. A group of people normally tasked with gathering financial capital came together to gather some intellectual capital from each other as well as real estate and capital experts.NAREIM C&I  (Cover 1)

Money: “What is this stuff anyway?”

“It’s energy. It’s votes. It’s a collective agreement, a shared delusion that allows us to allocate resources, power, and make collective decisions,” proclaimed Gunnar Branson, President of NAREIM, in his kickoff speech. “It aggregates consensus.” But money isn’t dispassionate. It has an agenda. Different money wants different things. In our industry the assumption is that all money wants the best risk adjusted returns. This is mostly true, but is that the end of the story? Steve Jobs figured out that what people really want in music was not records or CDs, but songs. When he created iTunes to deliver songs a la carte to consumers he upended a century old industry in only a few years. “If we assume that the best risk adjusted return is the end of the story we are missing the underlying demands of capital.”
Economically: What Inning Are We In?

Many live in fear, invest in fear, and project fearful financial outlooks believing that this is ninth inning. After all, the last 4 recessions have all come within 8-10 years of each other and 2008 was 8 years ago.  The expectation is that interest rates will…(for a full report, click here)