GlobeSt.com also recently chatted about capital markets and investments with Peter Jun, COO and senior managing director of investments at Madison Marquette. Jun tells GlobeSt.com that the overall real estate and property market universe in the US remains strong.

“Continued robust foreign investment in US real estate, high transaction volume, relatively low interest rates and job growth all contribute to increased demand for core and emerging district concepts,” he says. “The US real estate market's stable yields together with value appreciation opportunities across property types translate into a highly positive environment for diversified investment.

And “despite some political question markets—how the Trump Administration will impact regulation and economic factors tied to the real estate industry; Brexit; tariff and trade change-ups that might affect Asia, Mexico and South America—foreign investment in the US real estate market remains strong,” he continues. “In 2015, AFIRE tallied foreign purchases of American assets at over $87 billion. And in 2016, that number rose to $98.9 billion. This year, AFIRE members have indicated they will take enhanced positions in major gateway cities and will further sharpen their investment strategies to include slightly more risky secondary markets.”

When we asked Jun about what property sectors to watch, he said that retail continues to be re-imagined. “With historic department stores, like Macy's, Sears, Kmart, JCPenney, facing dramatic curtailment and mixed-use (live/work/play) environments increasingly taking a prominent role in new residential, office and retail development. In urban markets, emerging districts are multiplying—reviving once dormant neighborhoods and attracting a wide variety of demographic interest.”

But growth in CRE is now occurring in only a few sectors: multifamily housing, senior and university-related housing and select industrial tenants, he says, some of whom are repurposing emptying malls and others who are building ground-up regional distribution centers. “Office is also expanding in key markets—after a multiyear slowdown. While lending has been conservative, 2017 will see a return by local and regional banks to real estate lending—a factor that will encourage additional growth in both infrastructure and jobs. Also, look for more investment activity in multi-tenant urban retail assets and mixed-use opportunities in infill markets.”

Hear more from experts in the next few days as we fully cover the RECon event, with thoughts not only from attendees and panelists, but coverage of sessions, parties and more.

LAS VEGAS—The majority of audience members at the capital markets panel at ICSC RECon 2017 were made up of shopping center owners. And panelists during the majority of the panel spent most of their session reviewing different types of transactions. One transaction was a $10-million shopping center deal, another was a purchase of a shopping center for $40 million, and the third was a $150-million portfolio purchase. The group talked about their concerns and the risk and reward in each deal.

Panelists detailed points on each deal such as taking a close look at bankruptcy departures at one particular property, and about conduit debt concerns, what the business plan is (whether to hold forever or move some of the assets) and more.

The result of the discussion was that “having a full understanding of the risk is key” to any bank that is providing debt, said Karen Case, executive managing director and president of Commercial Real Estate at the PrivateBank.

And the consensus of the scenario discussion was that everyone looks at deals differently, said Brad Hutensky, founder and CEO of Hutensky Capital Partners. The question to ask is “will the debt allow me to do what I need to do on the property.”

GlobeSt.com also recently chatted about capital markets and investments with Peter Jun, COO and senior managing director of investments at Madison Marquette. Jun tells GlobeSt.com that the overall real estate and property market universe in the US remains strong.

“Continued robust foreign investment in US real estate, high transaction volume, relatively low interest rates and job growth all contribute to increased demand for core and emerging district concepts,” he says. “The US real estate market's stable yields together with value appreciation opportunities across property types translate into a highly positive environment for diversified investment.

And “despite some political question markets—how the Trump Administration will impact regulation and economic factors tied to the real estate industry; Brexit; tariff and trade change-ups that might affect Asia, Mexico and South America—foreign investment in the US real estate market remains strong,” he continues. “In 2015, AFIRE tallied foreign purchases of American assets at over $87 billion. And in 2016, that number rose to $98.9 billion. This year, AFIRE members have indicated they will take enhanced positions in major gateway cities and will further sharpen their investment strategies to include slightly more risky secondary markets.”

When we asked Jun about what property sectors to watch, he said that retail continues to be re-imagined. “With historic department stores, like Macy's, Sears, Kmart, JCPenney, facing dramatic curtailment and mixed-use (live/work/play) environments increasingly taking a prominent role in new residential, office and retail development. In urban markets, emerging districts are multiplying—reviving once dormant neighborhoods and attracting a wide variety of demographic interest.”

But growth in CRE is now occurring in only a few sectors: multifamily housing, senior and university-related housing and select industrial tenants, he says, some of whom are repurposing emptying malls and others who are building ground-up regional distribution centers. “Office is also expanding in key markets—after a multiyear slowdown. While lending has been conservative, 2017 will see a return by local and regional banks to real estate lending—a factor that will encourage additional growth in both infrastructure and jobs. Also, look for more investment activity in multi-tenant urban retail assets and mixed-use opportunities in infill markets.”

Hear more from experts in the next few days as we fully cover the RECon event, with thoughts not only from attendees and panelists, but coverage of sessions, parties and more.