Perhaps the most important secular trend is new technology
An increasingly synchronized economic upswing, the first since the global financial crisis, continues to support real estate market fundamentals around the world. More markets are now doing well, notably several in Continental Europe. This is a great positive and is creating opportunities for real estate investors.
Pricing remains competitive, however. The weight of capital chasing income-producing assets has driven yields/cap rates to historic lows in many locations. There is concern in some places, particularly in the US, that we may be getting a little late in the cycle. This has focused our attention on the importance of two global execution themes:
• A focus on bottom-up, asset-level drivers of real estate returns
• Investing with tailwinds from secular trends
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