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NAI Global Market Outlook Highlights Commercial Real Estate Investment Opportunities

03/27/2017

NAI Global Market Outlook Highlights Commercial Real Estate Investment Opportunities

Blackstone Senior Managing Director and Global Chief Investment Officer Leads Discussion with over 400 Industry Leaders

New York, NY – March 27, 2017 – Commercial real estate fundamentals remain strong and will continue to attract investors, but macro shifts in particular markets and sectors will have the most significant impact on investors, according to Blackstone’s Kenneth Caplan, Senior Managing Director and Global Chief Investment Officer, Real Estate. Caplan was the keynote speaker at the 2017 NAI Global Market Outlook in Dallas that was attended by over 400 individuals from NAI Global firms and their clients. Andrew Farbman, CEO, NAI Farbman and 2016 Chairman of the NAI Global Members’ Leadership Board, facilitated the discussion.

Caplan discussed Blackstone’s investment strategies, focused on opportunistic, debt funds and core plus investing in US, Asia and European markets. He is bullish on areas where there is stronger demand from job and population growth, including cities like Seattle, Boston, Berlin, Stockholm and London.

“Commercial real estate still has the ability to generate increasing cash flows. We’re always focused on fundamentals. We’ve had seven years of strength in terms of economic and job growth, with supply in check and positive fundamentals,” said Caplan.

Strength in Logistics

He is also bullish on the logistics sector, and noted that since the financial crisis, demand for logistics space strengthened as e-commerce demand outpaced expectations and created investment opportunities, sometimes by acquiring smaller properties amassed in the portfolio.

In answer to a question posed by Farbman about the slower pace of internet penetration for retail on the grocery side, Caplan agreed that grocery falls further behind other retail businesses but anticipates broad, ongoing change across the retail sector. He believes there will be more emphasis on experience-based retail, and a change in how retail centers are tenanted to bring people to the store, creating both opportunities and challenges for investors.

Co-Tenanting Not a Fad but a Trend

The focus on tenanting will also have a strong impact on the office market worldwide, particularly as co-tenanting gains popularity. Caplan doesn’t see co-tenanting and space sharing as a fad, but rather as a shift in how office tenants want to use space, and investors need to respond to tenant demand by focusing on targeted location and properties where that environment can be created. That will generate value for the asset.

“Commercial real estate still offers an attractive return but one question on the mind of every investor is where the opportunities can be found,” said Jay Olshonsky, FRICS, SIOR, President of NAI Global. “The insights and perspectives shared by Mr. Caplan and Mr. Farbman will provide NAI professionals and their clients who attended the Global Market Outlook with a better understanding of what is driving the market.”

Growth of Dallas Market

The conference opened with an overview of the booming Dallas commercial real estate market. Mark Miller, President, NAI Robert Lynn, the local NAI office that serves the Dallas – Ft. Worth metro region and 28 submarkets, noted that Dallas has changed dramatically during the past decade and is currently the leading office market in the United States and is home to 21 Fortune 500 companies. Miller also stated that superior rail and highway infrastructure in Dallas have made the region one of the best inland logistics and distribution centers in the world.

“Dallas is a key commercial hub for our institutional investors, and continues to grow exponentially with strong economic drivers and fundamentals that are attractive to companies worldwide,” said Olshonsky. Our local market leadership allows us to provide our professionals and their clients worldwide access to expanded opportunities in this growing region.”

About NAI Global

NAI Global is a leading global commercial real estate brokerage firm. NAI Global offices are leaders in their local markets and work in unison to provide clients with exceptional solutions to their commercial real estate needs. NAI Global has more than 400 offices strategically located throughout North America, Latin America, Europe, Africa and Asia Pacific, with over 7,000 local market professionals, managing inexcess of 400 million square feet of property.  Annually, NAI Global completes in excess of $20 billion in commercial real estate transactions throughout the world. To learn more, visit www.naiglobal.com and www.naiglobalnewslink.com.

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03/27/2017 - 11:30

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NAI Global

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