Commercial property

Meeting CRE’s Investment Challenges: Highlights from the DLA Piper Summit

Panel on Capital Markets at the DLA Piper Summit. From left to right, Anar Chudgar, Brian Kavoogian, David Lentz and James Reynolds.

Challenges not seen for generations, higher operating costs and a fluid global situation: these issues shape all financial market trends and strategy. But at the DLA Piper Global Summit, industry leaders offered the public new strategies to overcome a variety of obstacles.

Inflation was a topic on the minds of all panelists during the Tuesday morning discussion moderated by Todd Rich, founder of Statement Partners. James Reynolds, Chairman and CEO of Capital Loopnoted that it takes an industry veteran to remember the inflationary climate of the late 1970s and early 1980s. But no one alive, he added, is likely to remember the times of 8%, 9% or 10% inflation and whether the actions of the Federal Reserve will make matters worse.

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As a result, investors are looking in new directions. “We are seeing a resurgence of interest in fixed income investing,” Reynolds added. “The fact that you’re in bonds and can get your principal and interest back is an attractive offer after you’ve just lost 30% of your equity.”

Asked if companies can take operational measures to deal with higher costs, David B. Lentz, chief executive of Green Court Partners LLC said his company is using technology in a new way: to create a dynamic pricing approach to airport parking, which hadn’t had such a model before. “It’s made a huge difference to our business,” he said.

Brian Kavoogian, Managing Partner at national development, noted that he and his colleagues believe the ability to add value at the property level will prove increasingly vital. But panelists agreed that value-added capabilities will ultimately come down to solving the staffing challenges faced by so many employers.

Noting that foreign investors have long been attracted to the stability of the US housing market, Rich asked what impact the war in Ukraine has had on US real estate. Artemis real estate partners Co-chairman Anar Chudgar noted that international investors – whose office holdings in their home countries have been relatively less affected by Covid than the office sector in the United States – remain interested in buying buildings. offices in the United States.

Reynolds said he’s seen less “swinging towards the fences,” as well as investors moving away from stocks and moving from risk to risk. Both Kavoogian and Chudgar have expressed faith in bottom-up industrial development.

For Kavoogian, political trends in major cities present a major challenge. Another is the growth in rents. “As these cities get bluer, we’re not the city’s heroes and we’re easy to beat,” he said. “I am very worried about the growth in rents, which will cause even more backlash in our cities.”