Commercial & Infrastructure Real Estate
Real estate: no end in sight. Investments in Commercial Real Estate will continue to generate significant return and attract Foreign Direct Investments, as stated also by C&Z GLOBAL Advisors President and CBC Advisors CEO, Mr. Lew Cramer, in an interview for the recent article, ‘AN UNCERTAIN CERTAINTY, U.S. Commercial Real Estate Remains a Sound Investment’ (‘Advisors’ https://indd.adobe.com/view/0d49fc06-b749-48f6-9e8c-ec39dcb4f368). The global economy is on a robust upswing that should continue in the coming year with growth in the major economic regions likely to exceed potential once again in 2018. “Overall, global economic growth at nearly 4 % of GDP in 2018 should end up at roughly the same level as in 2017,” (© Ulrich Stephan, Global Chief Investment Officer at Deutsche Bank Private & Commercial Clients).
USA: strong growth with upside potential: likewise, as 2017 has come to a close, the U.S. economy clocked an annual average 2.3% climb for the year, its fastest pace since 2014. Midway through 2018, a stronger-than-expected domestic backdrop should also help ring in the 10th year of business expansion. According to a 2018 outlook from top financial institutions, this cycle shall still have room to run: “Though ultra-low unemployment, a positive output gap, and rising interest rates continue to suggest the U.S. is late-cycle, a general lack of overheating in key sectors such as housing, and rising suggest this late-cycle phase is likely to continue throughout 2018.” (© Morgan Stanley Chief U.S. Economist Ellen Zentner). The US economy is increasingly based on broad foundations: the traditionally robust consumption is being supplemented by rising corporate investments. “This upward trend will continue and become even stronger” (Ulrich Stephan, Global Chief Investment Officer at Deutsche Bank Private & Commercial Clients). Deutsche Bank forecasts that in the coming year the US economy will grow by 2.6 percent – compared with 2.3 percent for 2017. The 2018 outlook for the U.S. capital markets -encompassing debt and equity investment activity, pricing and performance, as well as investment strategy is largely favorable, across all CRE assets categories. It is anticipated that Investment opportunities will be generated from three primary sources: (1) acquisitions of quality assets, and (2) build-to-suit, or sale leaseback opportunities. Also, CBRE’s 2018 U.S. Market Outlook forecasts market performance in the year ahead for all major commercial real estate sectors. Beyond the fundamentals of supply and demand, certain macro factors that are likely to impact the industry, such as tax reform, infrastructure spending, health care policy, business spending and investment among others. CBRE’s 2018 U.S. baseline scenario “is for continued economic growth and rising employment in 2018, which should benefit all major asset classes”. The large size of the U.S. and its variety of economic drivers “provide both investment opportunity and diversification benefits to international real estate portfolios”. Infrastructure, Office, Industrial & Logistics, and Data Centers asset classes will continue to generate the highest ROI.
Specifically, Investment Performance by Property Sector and Subsector, published on December 29, 2017 (Source: FTSE ™, NAREIT®), highlights a 35.38% ROI for Infrastructure and 28.43% for Data Centers, in both 2016 and 2017.
Since the mid 80’s, C&Z GLOBAL Advisors Leadership has represented and been a trusted advisor to CRE investors, tenants, master and special servicers, portfolio lenders, and property developers and borrowers in connection with numerous high and low-profile CRE acquisitions, sales, lease, leaseholds, and “built to suit” transactions, financing and loan restructuring, globally and throughout the U.S. (see below, Schedule 3. INFRASTRUCTURE & CRE TRACK-RECORD: GEOGRAPHICAL MARKETS / SECTORS / DEAL-CATEGORY).
Further, C&Z GLOBAL Advisors' enjoys the unique position to access market and off-market pipeline of its preferred CRE partner and brokerage, zoning, construction management and asset-management service provider, CBC Advisors, a a full-service CRE professional firm, headquartered at 111 South Main, 22nd Floor, Salt Lake City, UT 84111, United States and operating under Mr. Lew Cramer’s management, also President of C&Z GLOBAL Advisors, in 30 offices nationwide and with a strategic partnership with CBC affiliates of Mexico, including the #1 office brokerage firm in Mexico City.
Over the past 20 years, CBC Advisors has evolved significantly to become a staple of responsiveness, professionalism, integrity and experience in the commercial real estate services industry. With an operating platform of ~$5 billion in transactional value and ~20 million square feet in AUM (“Assets under Management”), CBC Advisors was named by Real Estate Forum, at the end of 2016, the fastest-growing mid-size commercial real estate services company, for the 2nd straight year, and the Top Performing Affiliate in the Coldwell Banker Commercial global brand (Coldwell Banker Commercial ®) for the T14th straight year. Established in 1906, owned by Coldwell Banker Real Estate LLC., the Coldwell Banker Commercial ®) global brand is now among the most recognized and leading commercial real estate brands in the world, with over 300 offices globally.
An independently owned and managed company, CBC Advisors is a full-scope professional firm, providing multi-disciplinary services (including Brokerage & Capital Services, Market Research, Asset Management & Services, Client Accounting: Internal Control & Financial Reporting, etc.), providing expertise and high levels of sales, leasing and marketing service that today’s educated CRE investors, sophisticated landlords and tenants require, spanning all facets of major Commercial Asset Classes, including Office; Industrial & Logistics; Infrastructure Real Estate; Data Centers; Retail; Hospital, Medical Facilities, Assisted Living; Senior Living and Student Housing; Hotels & Hospitality; Land & Mining, Investment & Specialty Properties, etc..