LOS ANGELES—The volatility that Q1 has shown is representative of some mixed messages in the marketplace. That was according to investment outlook panel moderator Marc Renard, vice chairman an executive managing director of the capital markets group at Cushman & Wakefield at the recent RealShare Los Angeles event here. While he noted that there is still tons of capital out there in need to buy, he explained that there is more of a search for clarity.
“In understanding the economics of where we are in the cycle, as an investor, you have to separate the noise from the trend lines,” said panelist Stan Iezman, chairman and CEO of American Realty Advisors. “We have had the lowest interest rates in 10 years, but let's not mistake genius for luck. There is lots of luck going on out there.”
According to Iezman, this is a mature cycle. And while he wouldn't get into whether or not things are going to shift in the next two or three years, he did say that “you have to shift between being tactical and strategic.”
When asked about history repeating itself relative to cycles and looking for red flags in the market to indicate peak pricing, Iezman said, “if you look at that, you would have stopped buying three years ago.”
Jessica Levin, director of acquisitions at Intercontinental, said that it doesn't yet seem like people are pulling back. “I think you have the same number of bids,” she said.
Dean Rostovsky, director and acquisition office at Clarion Partners, added that there are strong fundamentals taking place. “It is hard to run counter to that in your investment philosophy, which isn't showing much sign of any slowness.”
When talking about the continued flow of offshore capital, panelist Kevin Crummy, CIO of Douglas Emmett, said that while we might not be happy with growth in the US, when you look at the world, Europe has negative interest rates, and investment has slowed in London. “People are paused and looking at Europe wondering what is going on and Japan doesn't have a good demographic outlook.” So, on a relative basis, he said, the US looks pretty good.
Check back in the next day or so for more from this panel and more from the RealShare Los Angeles event. And to read other articles from the event, click below.
LOS ANGELES—The volatility that Q1 has shown is representative of some mixed messages in the marketplace. That was according to investment outlook panel moderator Marc Renard, vice chairman an executive managing director of the capital markets group at Cushman & Wakefield at the recent RealShare Los Angeles event here. While he noted that there is still tons of capital out there in need to buy, he explained that there is more of a search for clarity.
“In understanding the economics of where we are in the cycle, as an investor, you have to separate the noise from the trend lines,” said panelist Stan Iezman, chairman and CEO of American Realty Advisors. “We have had the lowest interest rates in 10 years, but let's not mistake genius for luck. There is lots of luck going on out there.”
According to Iezman, this is a mature cycle. And while he wouldn't get into whether or not things are going to shift in the next two or three years, he did say that “you have to shift between being tactical and strategic.”
When asked about history repeating itself relative to cycles and looking for red flags in the market to indicate peak pricing, Iezman said, “if you look at that, you would have stopped buying three years ago.”
Jessica Levin, director of acquisitions at Intercontinental, said that it doesn't yet seem like people are pulling back. “I think you have the same number of bids,” she said.
Dean Rostovsky, director and acquisition office at Clarion Partners, added that there are strong fundamentals taking place. “It is hard to run counter to that in your investment philosophy, which isn't showing much sign of any slowness.”
When talking about the continued flow of offshore capital, panelist Kevin Crummy, CIO of Douglas Emmett, said that while we might not be happy with growth in the US, when you look at the world, Europe has negative interest rates, and investment has slowed in London. “People are paused and looking at Europe wondering what is going on and Japan doesn't have a good demographic outlook.” So, on a relative basis, he said, the US looks pretty good.
Check back in the next day or so for more from this panel and more from the RealShare Los Angeles event. And to read other articles from the event, click below.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
