A global perspective on capital markets



The Sept. 13 “Industry Insights” event from The Real Estate Council and Real Estate Deal Sheet offered a global perspective on capital markets. Keynote speaker Jimmy Hinton, managing director of HFF, kicked things off with an overview of market trends and the factors enticing foreign investors into U.S. real estate. Following his presentation, real estate experts took a deeper look at international capital in a panel moderated by CBRE’s Jeanette Rice. Here are some of the takeaways: 

JIMMY HINTON, HFF

Certainly you’ve seen Chinese capital come into multifamily development projects here in Dallas and elsewhere in the U.S. There’s a lot of concern on whether that funnel’s going to stop, and my answer is, ‘no it’s not.’


 

JACK FRAKER, CBRE

Our asset class [industrial] is finally one of the most popular asset classes in the world. All of the foreign investors that we’ve worked with are very interested in getting into this sector. … 

The thing about industrial real estate these days is the fundamentals are at an all-time high so you’re seeing very tangible examples of rental rate growth. 


 

MICHAEL ZIETSMAN, JLL

There is a significant amount coming out of Asia — about 50 percent of capital at the moment — but Canadians make up a big chunk as well, they’re about 30 percent of capital coming into the U.S.


 

SABINE STENER, GAEDEKE GROUP

The underlying fundamentals are such that people who do look at them will realize that Dallas has become not only a primary market, but a very lucrative one. I think we will see over the next five to 10, maybe 15 years, this image will change. A large part of that is that Dallas, because of many factors, has been able to attract so many companies.


 

TAL PERI, UNION INVESTMENT REAL ESTATE

It is easier to go to a New York or a San Francisco, but many of these markets have seen rent growth slow down. … Dallas benefited from the primary markets being priced out and having more people coming and looking in the secondary markets.