RECM Conference 2020

2019 RECM Conference Summary 

Our 12th annual Real Estate Capital Markets Conference held in January 2019 affirmed a year with markets on the rise despite a time of political uncertainty. Read the full summary here.

Global Flows of Capital

2018 was a record year with over $100 billion of real estate activity, not including asset or public sales. Several experts shared their views on global capital flows, commenting on where investors are spending money on real estate, the sectors they’re investing in and what the future holds for real estate capital markets across the globe Trish Barrigan, Managing Partner of Benson Elliot Capital Management suggested “Europe offers one of the most attractive investment opportunities because it is a geography with a tremendous amount of volatility, constant elections and changing governments. With volatility comes opportunity, especially in an area like Europe organized as a collection of cities.” In the U.S., Ann Cole, Managing Director of J.P. Morgan Investment Management, pointed to the continued strength of major 24-hour cities like New York and Chicago, as well as the 12-18 hour cities such as Nashville and Portland. Cole added “Industrial and multifamily were favored for 2018, and will continue to be for 2019. Office space continues to see demand, less so for construction.” Concerning valuations in the listed property markets, Ted Bigman, Managing Director and Head of Global Listed Real Assets Investing for Morgan Stanley said he is seeing “unprecedented discounts allowing for a very cheap entry point for investors to get access to real estate. Rarely have such large discounts to private market value been offered in so many markets globally.”

Around the World in 80 Seconds with Anne Cole

Innovation and Disruption: Investing in Tech to Drive Value

Our panel on Innovation and Disruption led by Zach Aarons, Co-Founder and Partner of MetaProp revealed that a major challenge for real estate companies is privacy and cybersecurity. Robert Entin, Executive Vice President and Chief Information Officer for Vornado Realty Trust, said he now devotes triple the time he did 10 years ago to cybersecurity. Merritt Hummer, Principal at Bain Capital Ventures, addressed the topic of real estate technology through the lens of Fintech. “Looking back ten years ago to 2008, roughly a billion dollars of capital was invested in Fintech companies in the U.S. Last year, in 2018, fintech investment amounted to over $10 billion. The Proptech sector is following a similar path in terms of capital invested, but is on an even steeper trajectory than fintech was ten years ago.” Kent Tarrach, Vice President of Global Corporate Development for Brookfield Properties has observed a new level of collaboration within the real estate industry surrounding Proptech. Real estate companies are sharing how Proptech is incorporated in their business models, and identifying new technologies to implement and action upon data. So where are we in the cycle? John Helm, Managing Director at Real Estate Technology Ventures (RETV) predicts we’re at the top with Proptech, having grown from $100M in VC in 2010 to $12 billion by 2017.

Zach Aarons on What’s Happening in the Proptech Space

State of the Retail Sector

In our retail panel, Martin “Hap” Stein, Jr., CEO and Chairman for Regency Centers, described that many retailers providing value, service, and a compelling experience are doing well. The physical store is still critical to retailers’ multi-channel strategy. Moderator Jim Sullivan, President of the Advisory and Consulting Group at Green Street Advisors added,“ There are a lot of good things happening in retail, especially in the higher end. Whether it’s high end malls or high end grocery anchored shopping centers, they are at or near record high occupancy, their rents are growing, and when spaces are vacated, there are retailers coming in and filling that space.” At the same time retail is changing with technology like everything else. In five to ten years Stein predicts “Robots may be introduced in stores, stocking shelves and replacing cashiers, with the common goal of increasing efficiency. However the real differentiating factor in retail will be service, and how competitors stand out from one another.”

 

Martin “Hap” Stein, Jr. on the State of the Retail Market

2019 Photo Highlights

Goodwin Insights

Trends in the Public REIT M&A 
The last seven years have witnessed over $165 billion in M&A transactions involving public REITs. 15 public REITs were taken private in buyout transactions, while 39 REITs were acquired by other public REITs in strategic transactions.

Assessing the Impact of Real Estate Tax Reform 
On December 22, 2017, President Trump signed into law H.R. 1, known as the “Tax Cuts and Jobs Act” (the “TCJA”). The TCJA is the most far-reaching tax legislation to be passed in over 30 years.

Resources from Columbia Business School

Employment Statistics 
View information about MBA Real Estate Hiring at Columbia Business School.

CBS Real Estate Alumni Community
Find other CBS alums in your region and your area of the industry, and stay informed about real estate events, job postings, and important opportunities.

CBS Ideas at Work

Explore Columbia Business School’s Ideas at Work resources.

Columbia Business School Paul Milstein Center for Real Estate 
The mission of the Paul Milstein Center for Real Estate at Columbia Business School is to integrate theoretical and practical knowledge of real estate as it relates to the global market for real estate finance and investment.

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