News

The recently released The Wealth Report 2016 by Knight Frank reveals some interesting CRE trends that wealthy foreign investors may keep in mind when deciding where to invest. Over a decade, Knight Frank has provided a unique perspective on the interaction between wealth and the world’s prime property markets like Miami.

Experiential real estate

Successful investors must be attuned
to how the occupier will use the real estate asset they are renting or buying. It is the key to income generation. No longer can the office be viewed simply as a container for staff. Similarly, the modern retail
unit is today about much more than the throughput in the cash register. Real estate is increasingly about the user experience. Best performing retail assets will support retailers indirectly in driving increased. Office buildings will be central to driving occupier efficiency, productivity and talent retention. Understanding these changing dynamics will be pivotal in stock selection and investment return.

Innovative access to real estate product

We live in an era of crowd-sourcing and crowd-funding and these collaborative models will develop in commercial real estate. We will see greater tie-ups between private wealth and real estate expertise in joint venture structures and anticipate syndicated approaches that use strata title in office buildings. This will enable the wealthy to invest in lot sizes that would have otherwise been difficult to access.

Specialist sectors move further into the vanguard

Specialist commercial real estate sectors such as student accommodation, automotive, healthcare and hotels have become an established favorite of high net worth individual investors over the past decade. But wider socio-economic and demographic dynamics mean that the opportunity has been barely exploited. For example, demographic upheaval caused by an ageing population will serve to create future market opportunity in the healthcare sector.

Read The Wealth Report here: www.knightfrank.com/wealthreport