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Insights

Friday Market Recap

Weekly Assessment of Global Real Estate Trends

Paramount Group, Inc. (PGRE)

North America In the U.S.: The White House continues to be on defense as new details emerge regarding the whistleblower report showing a potential cover up of the President’s call with the Ukrainian president where it appears that President Trump urged the Ukrainian president to pursue an investigation into his political rival Joe Biden. Congress has opened an official

Digital Realty Trust (DLR)

North America In the U.S.: As expected, the Fed cut rates by 25 bps. Fed chair Jerome H. Powell, said at a news conference after the meeting that the United States economy remained strong and unemployment low, but that “there are risks to this positive outlook.” If the economy weakens, he said, a “more extensive sequence” of rate cuts

HCP, Inc. (HCP)

North America In the U.S.: A Reuters poll showed that most economists expect the Fed to cut the fed funds rate by 25bp at the next FOMC meeting. Also, nearly 80% of over 60 economists said US-China trade relations would either worsen or stay the same by the end of next year. President Trump floated two financial reforms this

Featured Global Market Reports

Browse finance headlines from around the globe we’re keeping an eye on

The Benefits of Global Investing

With 2013 behind us, it is worth noting that Europe was the top performing global region within the FTSE EPRA/NAREIT Developed Index. Europe’s total return greatly exceeded those of Asia and North America, for dollar denominated investors, although Asia was the best performing region on a local currency basis. Europe’s strong performance comes on the heels of a good

Mexico: The Rise of Fibra

We conducted three days of due diligence on the nascent REIT industry in Mexico (two days in Mexico City and one in Monterrey), our itinerary filled with back-to-back meeting with management teams of five of the seven exiting Mexican REITs, called Fideicomisos de Infrastructura y Bienes Raices or Fibras for short. Our discoveries: Mexico is experiencing a manufacturing renaissance. 

A Greek Tragedy…or is it a Comedy?

A Greek Tragedy… or is it a Comedy? Clearly, it is a little of both. As the new Greek government fails to form a coalition, the entire “progress” of the Troika’s (IMF/ECB/EC – and Germany) negotiations reverts back to uncertainty and talk of a Greek exit from the Euro. It is comical that Greece can hold the entire Eurozone

UK CEO Panel Talks London Market

Our European analyst recently attended the BAML UK Real Estate conference in London.  One of the panel discussions involved five CEOs of prominent UK REITs talking about the state of the London real estate market.  The panelists were John Burns (DerwentLondon), Chris Grigg (BritishLand), David Atkins (Hammerson), David Fischel (Capital Shopping Centers), and now retired Francis Salway (Land Securities).

Domestic & Capital Market Insights

What’s happening at home, outlooks & reviews

I see REIT Passive Ownership Rising… Is Trouble on the Way?

The efficient-market hypothesis (EMH) is a long-debated economic theory first introduced in nascent terms in the early 1900s, and advanced starting in the 1950s, which essentially suggests “security prices fully reflect all available information.” Although variations exist, the natural conclusion is that stock price movements are unpredictable; therefore “you cannot beat the market” and active portfolio management is a

4Q18 Capital Market Outlook

Since August 27, when Michael Bauer and Thomas Mertens published their FRBSF Economic Letter titled Information in the Yield Curve about Future Recessions, the ten-year-three-month spread has gone from “nearly 1 percentage point away from an inversion” to low of 15 bps on January 3, 2019. Put another way, investors were willing to lend money for ten years for

4Q18 Capital Market Review

The US economy is still expanding albeit at a slower rate. The third estimate of Third Quarter GDP growth came in at 3.4%, compared to 2.8% for Third Quarter 2017, and the latest estimate for Fourth Quarter GDP growth from the Federal Reserve Bank of Atlanta is 2.8%. According to the Bureau of Labor Statistics, changes in total nonfarm

And The Winner is… Amazon! & REITs!

Image used with permission of Philadelphia Inquirer Copyright© 2018. All rights reserved. Amazon, Inc. sent hundreds of municipalities into frenzy in September 2017 when the e-commerce juggernaut announced plans to establish a second corporate headquarters in North America, uninspiringly dubbed HQ2. Nearly 250 cities responded to Amazon’s Request for Proposal (RFP), with hopes of adding 50,000 full-time, highly-paid Amazons