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 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 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 fundamentals continue to normalise as a combina- tion of elevated supply growth and macroeconomic headwinds have pushed vacancy rates in the sector close to historical norms and sapped momentum from rent growth. Supply is likely to remain elevated through 2024 as the existing construction pipeline is exhausted but should slow noticeably in 2025 and 2026 given the recent reduced pace of new development. Much of the recent surge in industrial supply growth and vacancy rates has been concentrated in larger building sizes, however. Light industrial vacancy rates are considerably lower and are expected to remain lower in upcoming years, providing opportunities for owners and landlords in this size range.
OFFICE:
Fundamentals continue to deteriorate as tenants look to ‘right size’ their portfolios. Despite broader sector headwinds, the highest-quality assets are taking market share as many tenants are using the cost savings from reduced space needs to upgrade space. Looking ahead, high interest rates and the sector generally being out of favour are all driving developers to the sidelines resulting in record-low construction starts. Scant new supply for the next several years should benefit existing high-quality assets, as tenants will have limited options.
RESIDENTIAL:
The multifamily sector is demonstrating its ability to absorb record levels of new supply as evidenced by several quarters of above-average demand. Supply growth is highest across Sunbelt markets, which are generally experiencing the strongest job growth and in-migration compared to markets in other US regions. The cost of homeownership will remain unaffordable in the near term for many US households which should translate to sustained, consistent rental demand.
RETAIL:
Retail property fundamentals continued to show signs of resiliency in the second quarter of 2024. Vacancy rates for open-air retail remain historically low and tenant demand continues to be healthy. Meanwhile, the overall vacancy rate for malls of all classes masks the outperformance of the most productive malls rated class A and higher. These properties will continue to capture a larger share of sales compared to lower-quality counterparts. Retail construction activity remains suppressed and will help to keep vacancy rates below average even if demand pulls back.
ALTERNATIVES:
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. 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.
- 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, particularly 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.
