Asset repricing pronounced over next 6 to 18m
Dialogues magazine, Fall 2022
October 27, 2022
NAREIM’s Fall 2022 issue of Dialogues - out now and available for download - highlights the current market slowdown and how the deceleration in demand is a more pressing issue than inflation, supply chain challenges and geopolitics.
During a roundtable conversation with American Realty Advisors, Lendlease, PGIM Real Estate and Prologis, asked the firms' heads of research to give insights into inflation and the economic slowdown. The issue, they agreed, was repricing.
Repricing, the research leads said, would be more pronounced over the next six to 18 months, even given the fact there is a lot of embedded growth remaining in assets. Lagging was a key word for the firms.
Albina Reydman at Lendlease said there was so much inflation “already built in that the headline rate almost matters less than our response to it.” The fear was overcorrection by central banks, turning what Lee Menifee at PGIM said could turn a pesky issue of inflation into a pervasive one.
There is a legitimate question of whether inflation really impacts the business of investment management. As Chris Caton at Prologis, aptly said: “As a large owner of real estate, we are perfectly happy to see replacement costs go up.” The challenge, Chris continued, was the “clear pause in the repricing of risk in the financial markets.” It is something everyone is monitoring closely. Data by data by data.
Also in Dialogues, NAREIM members dived deep into specific property types to understand the impact of recessions on the sectors - and the industry. Articles include:
Industrial in a recession, with Stockbridge Capital
Nowcasting rents – as the markets move quickly, what technology is at hand to better forecast rents. A case study. With Berkshire Residential and Altus Group
The case for Class B apartment investing with Nuveen Real Estate
The age-restricted apartment community opportunity with Clarion Partners
Other issues highlighted by NAREIM members include ESG and the future operating model of the real estate investment manager.
How to get utility data out of tenants. With Brookfield Properties and OSCRE
Accelerating sustainability by upskilling employees with CBRE Investment Management
Generalists vs specialists – the operating model in depth. With Cortland
A new model of equality. Inside the story of 1Race’s creation and investment strategy. With 1Race and Uncommon Impact Solutions
Getting asset data right – tactics to use, with Partner Engineering & Science
To download the full magazine, click here.
NAREIM’s Dialogues magazine is distributed alongside the Spring and Fall issues of IREI, reaching more than 7,000 industry professionals. Professionally designed and edited, equivalent articles and advertising costs $12,000 to place. For more information and to contribute to Dialogues, contact email@example.com.