IPE / March 11th, 2015
IPE reports: Even some of the largest institutional investors are encountering difficulties finding values in the commercial real estate market. This commonality and their forecast of continuing low interest rates are some of the many findings from the closed-door MIPIM RE-Invest event held Tuesday, March 10th in Cannes, France.
Robert M. White, Jr. CRE, the founder and president of global commercial real estate data and analytics firm Real Capital Analytics (RCA), showcased that for many years the global retail investment had been above the long-term average. Other moderators also commented that technology was a big part of this trend, but that retailers were also still experimenting.
Other thoughts included a lack of alternate means to interest rates of protecting against inflation, as well as logistics becoming a highly-sought after sector despite the complexity of handling scaling and risk of obsolescence. Diversification seemed to also be less important than in previous years, as many are seeking more permanent, urban locations that will still be profitable in the years to come.