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.”

More news
The latest news from Real Estate Investment Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Joint venture buys Seattle Facebook office
24 May 2017 | Seattle | Reporter: Theo Andrew
Commerz purchased its stake in the 32,000-square metre office building for its open-ended real estate fund hausInvest
CPPIB’s real assets investment hits $73.1 billion
23 May 2017 | Toronto | Reporter: Theo Andrew
The pension fund ended the fiscal year with net assets of CAD 316.7 billion, a CAD 37.8 billion increase on 2016
Schroder and IED acquire Seville shopping centre
23 May 2017 | Seville | Reporter: Theo Andrew
Schroder purchased 50 percent of the asset for its European Real Estate Investment Trust (SEREIT), reflecting a net initial yield of 6.2 percent
Benson Elliot announces executive shake-up
23 May 2017 | London | Reporter: Theo Andrew
Mogull was previously managing partner, and Barrigan held the title of senior partner. The pair launched the company in 2006.
Barings kick starts global brand Initiative
23 May 2017 | London | Reporter: Theo Andrew
The central theme, ‘Adaptability - the new look of partnership’, is intended to highlight the opportunities Barings offers across liquid and illiquid assets globally
M&G bags Berlin office asset for €94.1 million
22 May 2017 | Berlin | Reporter: Theo Andrew
Located in Berlin’s Wilmersdorf district and recently refurbished, the property’s tenants include the Institute for Federal Real Estate and Paypal
New York leads way in global construction price rise
22 May 2017 | New York | Reporter: Theo Andrew
The survey, which compiles data from Turner & Townsend in 43 global markets, also found that construction costs are set to increase on average by 3.5 percent in 2017