Real Estate's Coming of Age Spreads to the Global Stage, but Requires Heightened Risk Awareness.Principal Real Estate Investors A real estate investor is someone who actively or passively invests in real estate. An active investor may buy a property, make repairs and/or improvements to the property, and sell it later for a profit. , Real Estate Research Corporation, and Torto Wheaton Research present Expectations & Market Realities in Real Estate: 2007 - No Stone Unturned, the Global Search for Real Estate Alpha DES MOINES, Iowa “Des Moines” redirects here. For other uses, see Des Moines (disambiguation). Des Moines (pronounced /dɪˈmɔɪn/ in English, -- The search for higher returns than can likely be generated by core real estate has led institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. to look under every stone and allocate significantly more capital to value-add, opportunistic and offshore real estate strategies. These and other findings are addressed in the fourth annual release of one of the real estate industry's most comprehensive annual forecast reports for the U.S. real estate market - Expectations & Market Realities in Real Estate: 2007 - No Stone Unturned, The Global Search for Real Estate Alpha. Unlike any other in the business, this report combines the qualitative and quantitative analysis Quantitative Analysis A security analysis that uses financial information derived from company annual reports and income statements to evaluate an investment decision. Notes: of two of the industry's foremost research firms - Real Estate Research Corporation (RERC RERC Rehabilitation Engineering Research Center RERC Real Estate Research Corporation ) and Torto Wheaton Research - with the extensive transaction, asset management and research expertise of Principal Real Estate Investors, the fourth largest real estate investment manager in the U.S. This year's report analyzes the forces driving investor migration up the risk spectrum in search of higher total returns and addresses key trends impacting real estate space and capital markets. In addition, following several years in which virtually all real estate volatility has been on the upside, the report cautions against risk complacency as investors search for real estate alpha. "In an era of post-cap rate compression, increased interest rates and slowing global and U.S. economies, the key to top-tier investment performance will be successful execution at the property level in the form of sustained rent growth and excellence in investment navigation," said Randall C. Mundt, president and chief investment officer of Principal Real Estate Investors. Kenneth P. Riggs, Jr., president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of RERC, agrees. "Moving up the risk spectrum in an attempt to exploit market inefficiencies makes sense in today's maturing real estate market," he said. "While the targeted total returns for value-add, opportunistic and off-shore strategies are more attractive than those from core real estate, measuring the degree of risk associated with these strategies is made difficult by lack of historical data and low market transparency." Noting that while caution in investing is advised, Raymond G. Torto, principal and chief strategist of CBRE/Torto Wheaton Research, said, "real estate today is priced for perfection, not for any type of correction." Specifically, the report addresses: * Capital continues to pour unabated un·a·bat·ed adj. Sustaining an original intensity or maintaining full force with no decrease: an unabated windstorm; a battle fought with unabated violence. into real estate, but underlying investor composition is changing * Continued cap rate compression and full pricing of core property types is driving U.S. investors to embrace a broader spectrum of value-add, opportunistic, specialized, property types and offshore real estate strategies * Increasingly global capabilities of investment managers, a proliferation of international and global fund offerings and gradually declining regulatory and tax barriers to foreign ownership of real estate have made it increasingly feasible for investors to search for best relative value on a global basis * Real estate appears to be positioned to perform well in the long run, in both an absolute and relative sense, but as investment strategies branch out into less familiar territory amid a slowing economy, heightened investor risk awareness is warranted. Individual copies of Expectations & Market Realities in Real Estate: 2007 - No Stone Unturned, The Global Search for Real Estate Alpha can be purchased for $195 each by contacting RERC at www.rerc.com or 319-352-1500. Members of the media, to request a complimentary copy of the report, please contact: * Principal Real Estate Investors: Laura Dunn, 515-246-4907, dunn.laura@principal.com; or Tina Marchetti, 515-248-0065, marchetti.tina@principal.com * Real Estate Research Corporation: Barb Bush, 319-352-1500, bbush@rerc.com * CBRE/Torto Wheaton Research: Katy McMahon, 617-912-5226, kmcmahon@tortowheatonresearch.com About Real Estate Research Corporation: Celebrating 75 years of service, RERC is recognized throughout the industry as one of the nation's longest serving and most respected authorities dedicated to independent real estate research and analysis, valuation, general real estate consulting, independent fiduciary services, portfolio services, and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. support. This is the twenty-sixth year RERC has produced an annual forecast report, beginning with Emerging Trends in Real Estate in 1980 (issued fall 1979) and continuing through Expectations & Market Realities in Real Estate: 2005 (issued fall 2004). More detailed information about RERC is available at www.rerc.com. About Torto Wheaton Research: Torto Wheaton Research, a business unit of CB Richard Ellis CB Richard Ellis Group, Inc. NYSE: CBG is a multinational real estate corporation currently based in Los Angeles, California, U.S.A.. On December 20, 2006, the corporation, also known as CBRE, completed acquisition of Trammell Crow Co. in a transaction valued at $2. , is the premier provider of real estate forecasting and investment strategy services. Founded in 1982, its research and investment strategy services cover all quadrants of the real estate markets, including public, private, debt and equity. Get more detailed information about Torto Wheaton Research at www.tortowheatonresearch.com. About Principal Real Estate Investors: Principal Real Estate Investors is the fourth largest institutional real estate manager in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. based on tax-exempt assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. 1 and manages or subadvises $36.2 billion in commercial real estate assets. The firm's real estate capabilities include both public and private equity and debt investment alternatives. Principal Real Estate Investors is the dedicated real estate group of Principal Global Investors. About Principal Global Investors: Principal Global Investors is a diversified asset management organization and a member of the Principal Financial Group[R], with expertise in equities, fixed income and real estate investments, as well as specialized overlay and advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal . Principal Global Investors manages $176.5 billion in assets primarily for retirement plans and other institutional clients.2 About the Principal Financial Group: The Principal Financial Group([R])(The Principal ([R]))3 is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance and banking through its diverse family of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. companies and national network of financial professionals . A member of the Fortune 500, the Principal Financial Group has $215.0 billion in assets under management4and serves clients worldwide from offices in Asia, Australia, Europe, Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors PFG PFG Principal Financial Group PFG Performance Food Group (Richmond, VA) PFG Pinnacle Financial Group PFG Plasma Flood Gun PFG Planning for Growth PFG Pasty Faced Geek PFG Perfluoroguanidine . For more information, visit www.principal.com. 1 As of June 30, 2006. Pensions & Investments magazine annual survey of real estate managers, Oct. 16, 2006. 2 As of Sept. 30, 2006. Principal Global Investors is the asset management arm of the Principal Financial Group[R] (The Principal[R]), and includes the global asset management operations of the following members of The Principal Financial Group: Principal Global Investors, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , its U.S. and foreign advisory affiliates, and the asset management operations of Principal International, Inc. and its member companies. 3 "The Principal Financial Group" and "The Principal" are registered trademarks of Principal Financial Services, Inc., a member of the Principal Financial Group. 4 As of Sept. 30, 2006 |
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