2016

Global InvEstor Outlook

Real estate continues to shine

2016

Global Investor Outlook

Real estate continues to shine

SIX KEY THEMES

THAT WILL SHAPE COMMERCIAL REAL ESTATE IN 2016

Real estate continues to grow its appeal

Sentiment towards real estate remains positive. More than half of the respondents with multi-asset portfolios said that they would increase their real estate allocations in the next 12 months into 2016. The US will be a preferred destination for global capital.

Liquid markets still preferred

Global gateway cities (London, Paris, New York, San Francisco, Tokyo and Sydney) remain the primary target for global cross-border investors over the next 12 months. These markets have the advantage of offering large lot sizes and volume of stock that appeal to global mandates.

Seeking value

2016 will see a greater emphasis on secure income and asset management to drive performance. For some investors ‘overcrowded’ core markets are being seen for longer-term investments rather than short term trading.

Risk appetite moderated

International investors remain confident. While economic volatility and geopolitical events may have a short-term impact, long-term strategies remain driven by market fundamentals.

Local partnering

Our survey results show that more global investors will partner with local expertise and acquire platforms as a means of placing substantial amounts of capital with confidence.

Return of debt

In 2016 more investors will use debt to finance their acquisitions, despite increased interest rates in some territories. This suggests that the equity phase of the cycle is giving way to the debt phase.

“The days of ‘pass the parcel’ are over, and long term secure investment in core markets will be the norm. At the other end of the risk spectrum, large volumes of capital already raised will increasingly seek out opportunities in tier 2 cities and recovering markets”

John B. Friedrichsen, Global Chief Financial Officer of Colliers International Group Inc.

View the full Global Investor Outlook 2016 Report

 

Colliers International Global Researchers

Primary Authors

Mark Charlton
Head of UK Research and Forecasting
mark.charlton@colliers.com
+44 20 7487 1720

Bruno Berretta
Senior Research Analyst, EMEA
bruno.berretta@colliers.com
+44 20 7344 6938

Walter Boettcher
Director of UK Research and Forecasting
walter.boettcher@colliers.com
+44 20 7344 6581

Regional contacts

USA
Pete Culliney
Director of Research
pete.culliney@colliers.com
+1 212 716 3698

EMEA
Damian Harrington
Head of EMEA Research
damian.harrington@colliers.com
+358 9 856 77 600

Asia-Pacific
Andrew Haskins
Executive Director, Research & Advisory
andrew.haskins@colliers.com
+852 2822 0511