Abstract
Both commercial and residential investment real estate sectors are driven by similar, as well as differing fundamentals. Broader economic indicators, such as interest rates and employment numbers, will impact all segments, while more specific factors (such as levels of international trade) will have a more immediate impact on individual sectors. This report looks at the influence of these industry fundamentals in the primary real estate investment categories. These include residential and multifamily; commercial (office, industrial, retail and hospitality); Real Estate Investment Trusts (REITs); Residential Mortgage Backed Securities (RMBS); and Commercial Mortgage Backed Securities (CMBS). The discussion is augmented further by in-depth interviews with industry experts in the industry.
Mintelfs exclusive consumer survey in this report also looks at these investors and their attitudes and expectations. What is the current sentiment concerning differing types of real estate? What return on investment are survey respondents expecting?
Other critical investment factors that will be discussed at length include:
- The strength of the local and national economies
- Rental markets, and the impact on real estate
- Tax legislation and regulatory changes
- Other supply and demand factors
- The impact of location--for example, investment property owners, more so than vacation-home owners, tend to choose properties near their primary residence
- Demographics--The demographics for the investment real estate market has historically been primarily late 40s to early 50s (which is now the Baby Boomer generation), but other age groups have and will be a factor also
This report analyzes the marketplace for investment real estate, including residential, multifamily, commercial, hospitality, REITs, Residential Mortgage Backed Securities (RMBSs) and Commercial Mortgage Backed Securities (CMBSs). Drivers impacting the market include demographic changes, economic factors, product innovations and securitization trends. Investor behavior and expectations concerning the commercial and residential housing market are also discussed.
|