Nuveen Real Estate is one of the largest investment managers in the world with $145bn of assets under management.
Managing a suite of funds and mandates, across both public and private investments, and spanning both debt and equity across diverse geographies and investment styles, we provide access to every aspect of real estate investing.
With over 85 years of real estate investing experience and 795 employees* located across 30+ cities throughout the United States, Europe and Asia Pacific, the platform offers unparalleled geographic reach, which is married with deep sector expertise. For further information, please visit us at nuveen.com/realestate
*Includes 360+ real estate investment professionals, supported by a further 420+ Nuveen employees.
Source: Nuveen, 30 September 2024.
Sector forecasts
INDUSTRIAL:
Global logistics markets continue to benefit from re-shoring of industrial activity as well as increased stock keeping. Take-up is normalising from record highs and rental growth is slowing after big increases over the past two years. The upcoming development crunch should support structural rental growth going forward. Focus on supply constrained cities, especially urban logistics and broaden out to light industrial. Consumer led logistics in secondary cities and Southern Europe still have very sizeable online growth catch up potential. Fundamentals and tailwinds remain strong but beware of ESG challenged buildings with prohibitive capex.
OFFICE:
With construction activity being cut back and projects delayed, vacancies are set to peak on a (historically) moderate level for a market down turn. Despite rising vacancies, rental growth is still in positive territory in most locations along with increasing incentives. Investment markets remain sluggish and an absence of forced sellers means the situation will improve only gradually and yields may have a bit further to rise in some markets. Pronounced local market differences give investors the opportunity to play the market cycle and provide the best buying opportunity since the global financial crisis. A focus on buildings with strong ESG credentials close to public transport networks should secure attractive returns.
RESIDENTIAL:
The residential market continues to benefit from significant supply and demand imbalance. Higher interest rates, wage inflation (albeit abating), limited new development and retraction of private landlords constraining supply resulted in significant rental growth across most European cities. Rate cuts will improve access to home ownership, but barriers remain high ensuring demand for build to rent will remain strong over the medium term. Residential remains a top pick for investors and stabilised pricing has seen a pick-up in investment activity. Multifamily continues to dominate the investment market but we see increasing opportunities in nascent residential sectors such as single family, purpose-built student accommodation and affordable housing which provide more attractive entry yields and strong occupier fundamentals.
RETAIL:
Across the retail spectrum, Nuveen has greatest conviction within the European retail parks market which has the potential to provide investors with the opportunity to access improving retail market fundamentals in smaller and liquid lots sizes with strong, stable and diversified income. Retail parks provide omnichannel retail opportunities, inflation linked leases, higher income returning assets, low capex and sustainable compatible real estate. This is a rhetoric shared by the investor market, and in the UK in particular, we have already seen a reversal in pricing along with increased investment volumes.
OTHER:
We believe the self-storage sector is bottoming out as occupancy rates have found a floor. With more rate cuts on the horizon, a more favourable mortgage rate environment is set to boost housing transactions and consequently, storage demand. European student housing has continue to demonstrate strong performance following consecutive years of stellar demand, and has led the CRE investment, as transaction volumes in H1 2024 have already reached 75% of full-year 2023 levels. The growing appetite for student housing is echoed in fundraising activity, with record numbers of funds targeting the sector.
Investment principles & strategy
A client-focused culture is at the core of who we are and what we believe our clients expect from us. We take a stable, risk-aware investment approach to our business, which places our clients and investment teams at the heart of our process. Our fund management teams work closely with our clients to deliver investment performance that meets their objectives. The teams operate within a defined investment process with established risk controls, accompanied by investment committee oversight. Our tomorrow’s world investment philosophy incorporates strategic insights on megatrends throughout every stage of the investment process, looking beyond market cycles to assess how structural trends can best inform long-term real estate investments. Sustainability is embedded into everything we do for the enduring benefit of clients and society.
Strategic corporate development
We work closely with our clients to develop long-term strategic relationships, to understand their goals and meet their requirements. To ensure we provide each investor with a tailored solution, made up of a range of products and strategies, we have developed our range of solutions to offer the resilient, enhanced, debt and impact series.
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Our resilient series is designed for investors who are focused on diversification, income and long-term capital growth. Our strategies focus on investing in high-quality assets in leading cities that are well positioned in terms of long-term structural trends, including demographic change, urbanisation and technology.
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Our enhanced series applies strategies that work within market cycles, use a more active asset management and repositioning approach, and/or invest in emerging sectors and locations. These strategies are designed for investors that are looking for an enhanced level of capital growth.
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Our debt series is designed to provide investors with access to secure, income-focused returns. Our strategies may suit cautious investors seeking attractive levels of income with a measure of downside risk mitigation against short-term capital cycles.
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Our impact series is the newest addition to the offerings and is designed with the intention to generate positive social and environmental impact alongside a financial return. Our strategies are focused on developing solutions for people and the planet.
Performance verification
Nuveen Real Estate’s Performance Team has over 50 years of applied real estate performance and risk management experience. Applying strong auditable control risks, and adopting applicable real estate industry standards, the team operates independently of fund and account teams.
COMPLIANCE STATEMENT
All information is as at 30 June 2024.
These materials are only for use by the intended party and may only be circulated only to persons whom they may lawfully be distributed. Any entity responsible for forwarding this material to other parties takes responsibility for ensuring compliance with local laws, and in particular any applicable financial promotion rules. The information presented in these materials is believed to be materially correct as at the date hereof, but no representation or warranty (express or implied) is made as to the accuracy or completeness of any of this information. Data was taken from sources deemed reliable, but cannot guarantee its accuracy. The statements contained herein reflect opinions as of the date written and are subject to change without further notice. Nothing set out in these materials is or shall be relied upon as a promise or representation as to the past or future. This information does not constitute investment research as defined under MiFID. Nuveen, LLC provides investment solutions through its investment specialists.
