Nuveen Real Estate is one of the largest investment managers in the world with $143bn of assets under management.
Managing a suite of funds and mandates, across both public and pri- vate 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 755 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 360+ real estate investment professionals, supported by a further 390+ Nuveen employees.
Source: Nuveen, 30 June 2024.
Sector forecasts
INDUSTRIAL:
Industrial demand softened in H1 2024 as occupiers have taken a cautious approach to expansion following the unprecedented pan- demic boom. Vacancy rates have increased almost everywhere in Asia Pacific due to increased new supply, resulting in a gradual shift in the leasing market in favour of tenants. As a result, logistics rental growth has begun to taper off. Despite short-term cyclical challenges, investors remain eager to invest in industrial due to strong long-term demand bolstered by rapid expansion of the e-commerce market and lowering new supply pressure in the medium term.
OFFICE:
Weaker office fundamentals are in line with the ongoing economic and business uncertainty, alongside pressure to contain costs. Many occupiers have chosen to renew existing leases to save on relocation and fit-out expenses. Flight-to-quality demand persists but occupiers become more selective, primarily focusing on premium office buildings. As a result, rental growth is concentrated in well-located high quality offices. Cap rate expansion will continue in high vacancy risk markets, albeit at a slower pace than 2023. Seoul and Singapore offices remain appealing in the medium term, thanks to limited new supplies.
LIVING:
International student inflows to Australia continue to improve, with an increasing return of Chinese students. This trend is expected to persist as the country’s top universities report are record number of enrolments by Chinese students. This suggests that demand for student housing will remain robust, supporting student housing rents to rise. Meanwhile, Japan multifamily is buoyed by strong migration in major cities driven by solid corporate hiring and the phase-out of flexible work arrangements. Studio-type units continue to perform well as young professionals prefer to live closer to their workplaces. Similarly, Japan’s favourable demographic – more than 20 million people are aged 75 or above – strengthens the appeal of the senior living sector.
RETAIL:
Consumers have become more cautious since the beginning of 2024, with an increasing number of savings due to the current uncertain economic environment. Consumers have become more selective, placing a greater focus on affordability, such as shopping abroad where they can take advantage of weak currencies like Japan. This shift in consumer spending habits has resulted in uneven retail recovery, with Japan’s prime retail advancing thanks to strong rebound in visitor arrivals. Retail performance is likely to become increasingly bifurcated across the region. Tokyo, Osaka, Seoul and Singapore poise to demonstrate resilience.
OTHER:
Increased uncertainty about macroeconomic and real estate market prospects has continued to attract investors’ interests towards private commercial real estate debt. Banks have been increasingly cautious about property lending due to potential cap rate expansion caused by weakening real estate fundamentals. This will create opportunities for non-bank lenders to fill the funding gap, whether through refinancing senior loans or providing mezzanine loans. Investors will continue to benefit from strong risk-adjusted returns as interest rates remain high.
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 strat- egies,wehavedevelopedourrangeofsolutionstooffertheresilient,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.
