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What will 2022 and the next decade bring? In recent years, climate change has come to surpass corporate governance as the most pressing ESG issue commanding investors’ attention, and ESG investing truly has gone mainstream (and is attracting the regulatory attention to prove it). Yet there are new risks emerging for companies, investors and the planet in the coming decade that will test how well we have learned the lessons of the past.
This report was originally published in https://www.msci.com/www/research-paper/2022-esg-trends-to-watch/02900617144
Download the Report Read MoreDiscover the Disconnect Between Landlords & Tenant Expectations
Did you know that only 13% of tenants believe landlords are strongly positioned to serve their flexibility requirements?
The research addresses the following questions:
We are pleased to present our 2022 Global Public Real Estate Outlook Report!
This year, Hazelview celebrated its 10th anniversary investing in public REITs. And what a year it was, with publicly traded REITs rebounding strongly in 2021, experiencing a resurgence in demand, occupancy rates, pricing power and earnings growth. Navigating these evolving fundamentals required us to be flexible and committed to our investment process.
With our exceptional team of professionals based in Canada, the U.S., Europe and Asia providing Hazelview with the local eyes and ears to navigate these unprecedented market conditions, we begin our second decade where we finished our first, by looking for value that others have missed.
For those that received (and recall) our 2021 Outlook, we forecasted total returns of 15-20% for REITs in 2021. Outpacing this forecast, as well as most other industry segments, the REIT-opening in 2021 was in full swing. As for 2022, we believe the potential of sustained inflation will act as a tailwind for real estate valuations and coupled with strengthening fundamentals this will drive attractive earnings growth. Our target total return for global REITs in 2022 is 12-15%.
Segments we believe are exceptionally well positioned to outperform in 2022 include:
We look forward to another exciting year, as we seek to deliver the strong risk-adjusted returns our clients have come expect. We hope you enjoy this report and that it inspires conversation. I look forward to connecting soon.
See you in the new year,
Corrado Russo
Head of Global Public Real Estate Investments
This article was originally published in https://www.hazelview.com/
Download the Report Read MoreIncreased global capital flows and growing optimism to buoy property investments in the region
HONG KONG, 9 December 2021 – Leading diversified professional services and investment management company Colliers (NASDAQ and TSX: CIGI) has revealed that quality office assets in major metropolitan markets like London, New York, Tokyo, and Sydney, have retained their allure and will be in high demand next year. Core and core-plus office spaces are the top global strategy picks, with 60% of investors stating these assets as their investment preference, while industrial and logistics (I&L) assets will be the most coveted.
Their appeal not only stems from the realisation that office demand is here to stay, particularly in cities supported by strong transport infrastructure and high amenity values, but also the ease of large-scale capital deployment that office assets represent. The rising cost of construction, viewed by four in five (81%) investors as a pain point, could limit new builds, renovations, and retrofit projects, amplifying the demand for existing quality office assets.
“Based on our 2022 Global Investor Outlook, pent-up demand and delayed transactions will translate into momentum next year. However, investors face an increasingly complex and competitive marketplace, coloured by new regulations and COVID-19 uncertainties. With the amount of dry powder readily available, offices in Tier 1 cities are seen as safe-haven assets that offer an attractive route to deploy capital,” said Tony Horrell, Head of Global Capital Markets at Colliers.
A standout year for Asia Pacific property investments
Across Asia Pacific (APAC), more investors are prepared to put into action their ambitious plans that have been delayed by COVID-19. Cross-border capital flows are also likely to return, as travel and business activity progressively returns.
Terence Tang, Managing Director, Capital Markets & Investment Services | Asia, opined: “Optimism across the Asia Pacific region continues to gather momentum and investors will have a clear appetite to expand their portfolios. Transaction volumes are recovering back to their pre-COVID highs, and asset operating performances remain in a cyclical upswing.”
Overall, I&L assets will be the most sought-after real estate assets in the region, with more than 20% of investors anticipating capital value gains of 10%-20% in value-add I&L assets in 2022, supported by tailwinds and large-scale economic transformation.
Significant interest continues to surround core-plus offices, which remain a popular asset class for regional investors in Tier 1 cities like Singapore, Sydney and Tokyo. 63% of the respondents indicated that they plan to invest in these assets, versus 54% last year.
Multifamily/built-to-rent (BTR) properties are also an increasingly sought-after asset class, with investors targeting both core and development projects. In Japan, this is a sector that is well established and has long attracted foreign core capital, whereas in Australia, it is an emerging asset class with development opportunities.
“BTR is essentially following the development of new infrastructure, which is a strategy we recommend across all asset classes. You need to look at what and where governments are building, the fundamentals of the land and invest in assets you can repurpose if required,” said John Marasco, Managing Director, Capital Markets & Investment Services | Australia & New Zealand.
Retail is for the opportunistic while specialised assets gain favour
Our survey shows that investors see significant potential for the appreciation and repurposing of retail assets. Around a third of the investors mulling retail allocations are targeting opportunistic (including change of use) investments. In addition, hotels are also an opportunistic target, with 38% of investors looking at this sector. Both hotel and retail sectors offer good opportunities in cities with large domestic markets, like Japan, Australia and Korea.
Specialised assets, particularly data centres, life sciences and healthcare, are expected to help boost investment volumes in 2022, with student housing also poised for a comeback as Australia, the region’s main market, opens up to international visitors.
“This interest in alternative assets will continue to grow in most Asian markets, as investors seek new avenues of growth and returns amid the changes brought about by ongoing technological evolution and healthcare needs,” said Tang.
ESG considerations are growing in importance to investors
The report also shows ESG (environmental, social, governance) considerations remain prominent, with nearly three in four investors surveyed globally integrating environmental factors into their strategies. This desire to invest with intent is both a means of future-proofing their assets and responding to stakeholder and societal pressures requiring them to respond to the climate crisis.
ESG has also become a strong focus in APAC, as it will soon be a priority in the office sector as government and corporate tenants pressure owners to get their ratings up.
About the Colliers 2022 Global Investor Outlook
The second edition of Colliers’ annual outlook for global property investors is based on a focused survey undertaken by 300+ investors across the globe and in-depth interviews with Colliers’ regional Capital Markets leaders. The findings and opinions featured in the report are shaped by their responses.
This article was originally published in https://www.colliers.com/en-in
Download the Report Read MoreWe’re excited to share CATCH ’22, our Asia Pacific Commercial Real Estate Outlook 2022 paper with you.
With universal evidence supporting strong rebounds in business confidence and consumer sentiment, the Asia Pacific region is forecast to return to world leading growth in the second half of 2022.
Our paper focuses on key drivers of recovery, to ensure you CATCH the potential and opportunities of ‘22.
This article was originally published in https://www.cushmanwakefield.com/en/
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