Green Street Analyst Says Deals Driving Up Valuations of Health Care Real Estate

Michael Knott, managing director with Green Street Advisors, joined REIT.com for a video interview at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT at the Atlanta Marriott Marquis.

Knott offered an assessment of the valuations of health care properties in the current market. Deals that have taken place in the health care REIT sector in 2014 have helped to drive the value of health care real estate assets up “dramatically” and boosted the interest of capital markets in the sector, according to Knott.

Michael Knott

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Real Estate Slated for Eleventh Headline Sector in GICS®

Stock exchange-listed equity REITs and other listed real estate companies will be reclassified from the Financials Sector and elevated to an 11th headline Real Estate Sector of the Global Industry Classification Standard (GICS), the leading global listed equity classification system maintained by MSCI Inc. and S&P Dow Jones Indices. Industry observers received the news as a major step in the growth of REIT-based real estate investment.

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Fundamentally Speaking: Commercial Real Estate Fundamentals Sound Despite Volatility

In the latest edition of Fundamentally Speaking, Calvin Schnure, NAREIT’s vice president for research and industry information, observed that commercial real estate fundamentals remain sound despite stock market volatility during October.

Schnure explained that movements in the stock market in October mostly reflected concerns about global growth and the impact of the global economy on the United States. Worries about the strength of the U.S. dollar and its impact on U.S. firms that repatriate their foreign earnings also played a factor, according to Schnure.

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Houston Ranked as Top Market for Real Estate Opportunities in 2015

Houston now offers the most attractive real estate investment and development opportunities of any major U.S. market, according to a survey from PwC and the Urban Land Institute (ULI).

Another Texas city, Austin, took second place in the 2015 survey of more than 1,000 real estate experts.  San Francisco, which was ranked first in 2013 and 2014, slipped to the third position. Meanwhile, New York fell out of the top 10 to 14  in the 2015 survey. The Big Apple trailed up-and-coming cities such as Charlotte, N.C., and Nashville, Tenn.

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Commercial Real Estate Poised to Gain from Positive Market Fundamentals in 2015

The commercial real estate industry is poised for broad-based growth in the coming year as performance and profitability continue to improve across most property types and markets, according to projections from consulting firm Deloitte.

The company’s 2015 outlook is supported by improving property fundamentals, a strengthening economy, easy financing, and increased domestic and international investment activity, according to Deloitte. Against that backdrop, U.S. REITs are expected to continue to outperform benchmark indices such as the S&P 500 and Russell 2000.

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Alexandria Real Estate Equities Rides the Biotech Innovation Boom

Image courtesy of Alexandria Real Estate Equities, Inc.

As Alexandria Real Estate Equities (NYSE: ARE) marks the 20th anniversary of its founding, the provider of state-of-the-art real estate for the science and technology industries is seeing occupancy, demand and new development all reach record levels.

“It’s an interesting time because we’re seeing the innovation economy doing miraculously well,” said Joel Marcus, founder and CEO of Pasadena, Calif.-based Alexandria.

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Delta Associates Executive Says Economic Expansion Stimulating Real Estate Deals

Sandy Paul, executive vice president with Delta Associates, discussed real estate transaction volume in the latest edition of the NAREIT Podcast.

Transactions are up across all major property types in the United States in the last five years, according to Paul. Deals involving office assets are up nearly 500 percent in 2014 from 2009, while apartment transaction volume has grown more than 400 percent in that same timeframe.

“The market has come back pretty strongly,” Paul said. “What we’ve seen over the past year is that there has been some plateauing of volume.”

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PwC Survey Shows Consistent Signs of Strength in Office, Health Care Real Estate

Real estate investors remain bullish, especially regarding the office and health care sectors, according to a survey conducted by consulting firm PwC.

PwC’s survey of real estate investors in the third quarter of 2014, released Sept. 15, indicated that the office sector is showing consistent signs of strengthening. Most geographic markets are expected to be in either the recovery or expansion phase of the real estate cycle during the next four years.

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Survey Finds Commercial Real Estate Executives Overwhelmingly Optimistic About Next Year

Commercial real estate executives are overwhelmingly bullish on the outlook for their industry through the next 12 months, according to a survey conducted by international law firm DLA Piper.

DLA Piper’s survey, which was conducted in August, showed 89 percent of executives are upbeat for the coming year, compared with 85 percent a year ago and 30 percent in 2011. The survey was completed by 158 respondents, including CEOs, COOs, CFOs and other senior executives and real estate professionals.

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