Private, direct U.S. real estate investments are expected to outperform publicly listed real estate companies, including real estate investment trusts (REITs); homebuilders; publicly listed non-real-estate securities; commercial mortgage-backed securities (CMBS); and investment-grade corporate bonds in 2015, according to real estate market experts surveyed by the Urban Land Institute and PwC, the accounting and consulting firm.
“Last year, we indicated that active management could bring success and profits to those with real estate operating and management skills. Market evolution over the last 12 months has elevated that trend to “best bet” level for 2015. Asset selection and market timing may be regarded skeptically by efficient market portfolio theorists. But they are the raison d’être for those who make their reputations — and their profits — by outperforming market benchmarks.” (“Emerging Trends in Real Estate 2015”)
In it’s 36th year, the Urban Land Institute/PwC report is one of the most highly regarded and comprehensive macro overviews of U.S. commercial real estate markets. It’s always an interesting read for both industry insiders and real estate enthusiasts.