LONDON & TORONTO, Dec. 07, 2022 (GLOBE NEWSWIRE) — After a volatile year of geopolitical tensions, economic shocks and uneven monetary policy, Colliers (NASDAQ and TSX: CIGI) has announced a We anticipate the process of stabilizing . It will be anchored by mid-2023 in our latest Global Investor Outlook. Some countries, such as the UK and the US, have already seen rapid pricing resets, but this is far from universal. You can expect to see a big difference in how you do it.
“The real estate market offers a solid long-term investment and income stream once price levels are clear. Regional events and macroeconomic factors still have the potential to disrupt the positive momentum. Global Head of Capital Markets Tony Horrell said: “We expect investment activity to pick up as central banks stop raising rates and economic certainty increases. Investors will continue to look for bargains and large amounts of money will be created to act.”
An opportunity to drive liquidity and sustainability
Capital values will continue to be negatively impacted by the move to higher interest rates, with some pain in 2023, especially for non-core assets. Opportunistic fundraising is accelerating, indicating a focus on finding pockets of opportunity in the current reset, including:
- A closed-end real estate fund with an expiry date.
- Investors who may be short when it comes to refinancing. Creative routes to market in the debt space as more investors seek solutions such as mezzanine debt, bridge loans and project finance.
- Listed funds, such as REITS and developers, continue to trade at discounted net asset values, creating opportunities to acquire bonds and convert them into equity, capitalize existing structures, or even privatize them. I’m here.
More broadly, environmental, social and governance (ESG) criteria continue to be important factors in investor decision-making. In 2022, only 10% of investors had a capital improvement, disposal or acquisition strategy that incorporated ESG considerations. This will see him rise to 17% in 2023, with 45% of his respondents considering disposing of up to 20% of their existing portfolio over the next five years.
“In response to tenant preferences, increasing regulatory requirements and rising costs of assets under management, investors are rethinking value this year and putting more emphasis on a range of ESG factors. There is an expectation and evidence that assets are at a premium and those that are not are heavily discounted.” It’s interesting to see what
Core assets dominate
Market volatility has led investors to focus on fundamentals and defensive strategies. Overall, the top three sector preferences of investors in 2023 are Office (60%), Industrial & Logistics (60%) and Multifamily/BTR (48%). Core assets in established metropolitan cities are investor preference (60%), but sectors closely linked to changing demographics and economic realities, such as multi-family housing and senior housing, are growing on a smaller scale. We are supporting the activities of cities that are Containers, which have doubled in the last 12 months in EMEA and APAC Focused on his terminals, supply he chains to ease disruptions and increase inventories, investors will find nearshoring or reshoring opportunities in manufacturing There is growing interest in first-mile logistics due to the recognition of
Rising costs and future challenges
Investors surveyed cited interest rates (88%), inflation (74%) and supply chain disruptions (68%) as the top macro challenges for the year ahead. In addition, current inflation and interest rates are adding to rising operating and construction costs already exacerbated by supply chain issues and rising energy prices. Globally, 85% of investors say that rising construction costs will have the most negative impact on their ability to execute their investment strategies, followed by rising investment costs (77%).
“Understanding and managing the many rising cost pressures affecting real estate is critical. The cost of capital is only part of the equation,” said Chris Pilgrim, Director of Global Capital Markets. “Experienced partners with local expertise help investors understand the nuances of the market that affect cost and value.”
Global investor outlook for 2023
Our third edition of our annual outlook for global real estate investors from October to November 2022 features more than 30 in-depth interviews with global and regional experts from Colliers Capital Markets and over 750 investments. Based on home research. shaped by their reactions.
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. Our 18,000 enterprising professionals operating in 63 countries work together to provide our clients with expert real estate and investment advice. For more than 27 years, our experienced leadership with significant internal ownership has delivered annual investment returns compounded approximately 20% to our shareholders. With annual revenues of $4.6 billion and assets under management of $92 billion, Colliers , unlocking the full potential of real estate and real assets to accelerate success for our clients, investors and employees. For more information, visit corporate.colliers.com, Twitter @Colliers, or LinkedIn.
Global Manager, Communications
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ebbe3c63-58ad-4c72-a349-dcd10fc51ae0.