16 March 2017
Cannes
Reporter: Theo Andrew

US looking at long investments


The investment horizon across the US is looking increasingly towards the long-term, speakers suggested at MIPIM in Cannes.

Changing market trends in US real estate are becoming harder to track, causing investors to look for longer-term investments.

Christopher McGibbon, head of the Americas for TH Real Estate, said: “There is a change in the way investors are thinking. They are now looking 20, 30 or even 40 years ahead.”

One cause of this is the increasing impact of coworking and technology, which is changing the way people use office space. “People will not stop working, they are just changing the way they work”, McGibbon explained.

A new report from Green Street Advisors has suggested that the new supply in office space will mean it will be increasingly harder in the coming years for landlords to increase rent, a prospect that investors will have to take into consideration.

McGibbon said TH Real Estate is taking an analytical approach to such changes, so that it can best predict where the next coffee shops and gentrified areas might be, for example.

Eran Polack, CEO and co-founder of HAP Investments, warned: “Investors are increasingly not just looking towards return, but also self-preservation.”

McGibbon added: “You have to pick your stock. If you don’t stay ahead of the trend, you will get hurt.”

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