Nuveen Real Estate is one of the largest investment managers in the world with $152bn 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 more than 820 employees* located across 30+ cities throughout the United States, Europe and Asia Pacific, the platform offers geographic reach, which is married with sector expertise.
For further information, please visit us at nuveen.com/realestate
* Includes 385+ real estate investment professionals, supported by a further 430+ Nuveen employees.
Source: Nuveen, 30 June 2023.
The industrial sector faces some short-term challenges, as weaker activity in manufacturing, trade and housing have affected demand for industrial space. At the same time, supply growth has accelerated noticeably, leading to a nearly 70bps increase in the sector vacancy rate over the past year. Despite recent increases, however, vacancy rates remain below historic norms in most markets, and the sector continues to benefit from long-term tailwinds from e-commerce and supply chain diversification. As a result, industrial properties are well positioned for outperformance in coming years, particularly in infill locations and supply-constrained markets.
Strong headwinds are showing no signs of easing. Decelerating job growth caused by a weakening economy compounds an already challenging environment. Structural shifts in office use caused by the widespread adoption of part-time remote working continue to put negative pressure on demand. Permanent hybrid scheduling will continue to reduce demand as legacy leases roll, keeping occupancy levels lower for longer. Modern office properties are best positioned for outperformance. With supply continuing to deliver for the next several quarters, it’s unlikely that the sector will stabilise in 2024.
Multi-family demand rebounded in the second quarter but remained 30% lower than the long-term average for previous second quarters. This pace of demand is not keeping up with new supply, causing rising vacancy rates and decelerating rent growth in most markets. This trend is prevalent across Sunbelt markets, which experience the strongest in-migration but face a significant influx of new supply. High mortgage rates and declining home affordability provide some support for multi-family demand, but intermediate-term risks remain in some markets due to a net population decrease of those in typical renter age brackets.
The retail sector overall continues to grapple with macroeconomic uncertainty and a shift in consumer preferences towards services, but neighbourhood, community, and strip centres have proven to be resilient to the fluctuations in the broader economy. Fundamentals in this segment of retail should remain strong, with low vacancy and solid demand outpacing limited supply growth in the near term. In addition, retail values have been comparatively less sensitive to rising interest rates than other core property types. As a result, select retail properties remain attractive investment options in coming quarters.
Demand for alternative property types has typically relied on longer-term demographic and technology trends, making them more resilient to shifting economic conditions. The demographic shifts of ageing millennials and baby boomers will fuel demand for alternative housing and office sectors like single-family rentals, senior housing and medical offices. Technology-centric alternatives, such as cell towers and data centres, benefit from an evolving digital economy, and next-generation demand drivers, such as increased mobile connectivity and artificial intelligence will increase the need for greater data storage capabilities.
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. Environmental and social governance 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:
- 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.
- 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.
- 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.
- 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.
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.
All information is as at 30 June 2023.
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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.