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Real Estate and CRE Debt in 2018: A Global Perspective

The Commercial Real Estate Debt Market

Commercial Real Estate debt is an asset class with the potential to deliver higher risk-adjusted returns than corporate bonds, benefiting from an illiquidity premium, low loss rates and low correlations with other asset classes. 

Below we feature two types of paper; half cover the topic of CRE debt and financing in specific regions, while the other half provide expert opinion on the outlook for the global real estate market.

Savvy Investor

US Commercial Real Estate Debt Outlook (TH Real Estate, Apr 2018)
In their latest THINK US CRE debt report, TH Real estate discusses the reasons behind CRE debt's stable returns (despite the particular RE/market cycle), and why they consider it to be a 'superfood' for investment portfolios.

European Commercial Real Estate Finance: 2017 Update (CBRE)
This CBRE paper identifies key trends within the real estate debt market in Europe, as well as some of the features affecting the market for European loans.

UK Commercial Real Estate Debt - An introduction and the market opportunity (TH Real Estate)
The return profile of CRE Debt is similar to other bonds, and the risks entailed are driven by a multitude of loan attributes as well as macro-economic factors. Herein, TH Real Estate delves further into the CRE debt market in the UK.

Why invest in Australian CRE debt? (TH Real Estate, Mar 2018)
Martin Priestley, Head of Debt, Asia Pacific at TIAA, gives his view on why now is the right time for investors to engage in commercial real estate (CRE) debt in Australia.

Commercial Real Estate Debt in the European Economy 2016 (CREFC Europe)
This detailed 53-page paper examines the role of commercial real estate in the European real economy, starting with an explanation of what defines commercial real estate in Europe.

Real Estate Summary: Opportunity amidst converging returns and shrinking risk premia (UBS AM, Mar 2018)
The broad economic environment is still strong in 2018, which is supportive of real estate, but how will risk premiums react as monetary policy continues to become tighter?

THINK: Global Cities: Picking Winners and Regional Overviews (TH Real Estate, 2018)
A range of papers from TH Real Estate, focusing on the outlook for Real Estate investment in the world's major cities in Asia, North America and Europe.

2018 Global Real Estate Market Outlook (CBRE)
Innovation is rampant in real estate markets, with occupiers now using technology in order to provide more services and greater flexibility. CBRE reports on this trend and others within the industry in 2018. 

Thoughts on the "Retail Apocalypse" (Cambridge Associates, Apr 2018)
This paper has been authored by Cambridge Associates. In it, the authors argue that while retail is changing and some companies face challenges, this theme has probably been overhyped and implications for investors are limited.

Emerging Trends in Real Estate: The global outlook for 2018 (PwC)
Real estate has rewarded investors with strong returns in a world of falling interest rates and established business models. The positive outlook for the global economy is an encouraging sign.

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