Videos and Interviews
Dec 5, 2018
Green Street Says Retail Real Estate Gaining Validation from Digitally-Native Brands
Spenser Allaway, retail analyst at Green Street Advisors, participated in a video interview at Nareit’s REITworld: 2018 Annual Conference in San Francisco. Allaway highlighted the efforts underway by retail landlords to remain competitive in the current evolving environment. “Improving the overall look and feel of the mall is certainly key, but there needs to be just as much emphasis placed on the social offering of the mall as there is on its overall functionality,” she said. Turning to the benefits of densification projects, which add in non-retail uses, Allaway noted that they allow REITs to shrink underproductive retail space and increase foot traffic. She said Green Street expects more of these projects in the future as REITs have been successful in finding partners to help mitigate development risk. Allaway also discussed net lease REITs and the benefits they are seeing from portfolio diversification and more service-oriented concepts. Looking more broadly at the retail real estate sector, Allaway said the biggest trend seen in 2018 has been the more positive overall sentiment. This reflects an improving retailer base, a significant slowdown in store closures relative to 2016 and 2017, and a healthier consumer. “Not only are we seeing the overall narrative begin to improve but we’re also seeing actual validation by way of these digitally-native brands for the relevance of higher-end retail real estate,” Allaway said.
Nov 21, 2018
The Growth of REITs Around the Globe
Justin Brown, Senior Vice President, Advisory & Consulting, explains how REIT markets are “poised for growth” around the world. India, for example, recently finalized REIT legislation, offering investors the chance “to invest in stabilized, institutional-quality real estate.” Justin describes some of the challenges global REIT portfolio managers face when comparing the relative attractiveness of REITs across borders including tax structures, the treatment of capital expenditures, and sovereign risk.
Jul 18, 2018
European Real Estate Returns Outpace U.S. Returns Compared to Local Bond Rates
Cedrik Lachance, director of REIT research, compares real estate returns in Europe and in the U.S. and finds Europe more attractive. Although comparing real estate valuation globally is widely challenging, Cedrik leans on Green Street’s unique ability to spot investment opportunities to identify three sectors that stand out as having the best risk-adjusted return expectations.
Jun 21, 2018
Craig Leupold Expects Increased M&A, Privatization Activity
In a recent interview, CEO Craig Leupold shares views on valuation, interest rates, and activism. He describes Green Street’s evolving valuation approach with the addition of implied IRRs made possible by the new Real Estate Analytics product line. On the topic of rising rates, Craig notes that while real estate can be a decent inflation hedge, higher rates have recently proven to be a relative headwind for REITs and real estate. Finally, Green Street sees rising M&A and privatization activity reducing the number of REITs in the short-term.
Jun 19, 2018
Increased M&A and Spectacular Tailwinds for Industrial
Eric Frankel, lead analyst on Green Street’s Industrial team, discusses how increased M&A activity in industrial real estate speaks to amazing institutional investor demand. Green Street’s outlook remains bullish as ecommerce continues to produce some pretty spectacular tailwinds. On the supply side, Eric anticipates challenges developing properties in large population centers, buffeting the team’s rent growth forecast.
Apr 23, 2018
Managing Director DJ Busch on How Retail REITs Can Distinguish Themselves
DJ Busch, lead analyst for Green Street’s retail team, said that owners of retail real estate with ample access to capital will be better positioned to separate themselves from the rest of the pack for the changes to come. In general, the bar is getting higher on what qualifies as quality in the retail space.