PWC Report Expects Investable Real Estate to Grow

PricewaterhouseCoopers (PWC) released its latest report that anticipates global investable real estate to grow by more than 55% to around $45.3 trillion by 2020 (from a 2012 total of $29 trillion). The report, Real Estate 2020, suggests that these expansions will be greatest in emerging economies, where economic development should lead to better tenant quality and, in some countries, clearer property rights and will play out across housing, commercial real estate and infrastructure.

"Demographic shifts will affect demand for real estate fundamentally in 2020 with the aging Baby Boomers creating an increase in demand for specialist types of real estate like senior and intergenerational housing, while there will be a rise in micro-units for the younger population," said Mitch Roschelle, partner, U.S. real estate advisory practice leader, PWC. "As the real estate industry and environment evolves, there are certain risks that market participants should be aware of so they can navigate those challenges thoughtfully, while also being able to jump on the increasing amount of opportunities in the space. This is how we help our clients at PWC – and we’re working with them now so they will be fully prepared in 2020 and beyond."

An excerpt of other changes in real estate the report expects by 2020:

• A huge expansion in cities, with mixed results. By 2020, the 21st century’s great migration to the cities will be well underway. Cities are expected to swell across the fast-growing countries of Asia, Africa, the Middle East and Latin America. Even the developed Western countries will be urbanizing, albeit at a slower pace. By 2020, cities will be competing fiercely with each other.
• Growth in emerging markets is anticipated to ratchet up competition for real estate assets and competition between real estate organizations.
• Sustainability will transform design of buildings and developments, presenting opportunities and risks for real estate asset managers.
• Technology will disrupt real estate economics: growth in online shopping will continue to reduce the need for retail space, but shorter delivery times increase the need for warehouse space close to customers. As workers increasingly work from home or satellite offices, the need for office space will decrease. For developers, technology advances will make eco-efficient building more practical. Real estate capital will take financial center stage. Private capital will play a critical role in funding the growing and changing need for real estate and its supporting infrastructure. Real estate managers will need to leverage the full range of financing possibilities to take on new types of risk, often with long-term investment horizons.

For more news and information visit Blumberg Capital Partners.

PWC Takes 140,000 SF in Atlanta

PricewaterhouseCoopers (PwC US) has announced that it will be moving its Atlanta office to a new midtown location at 1075 Peachtree, assuming 140,000 square feet of space at the 18-story building. PwC signed a 16 year lease deal for the office space at the mixed use development of 12th & Midtown and expects to move in mid-2012 according to an Atlanta Journal-Constitution article. The company currently occupies roughly 112,000 square feet at the Millennium in Midtown located on the northeastern corner of 10th and West Peachtree Streets, less than five minutes from its new location. The full terms and costs of the lease were not disclosed, but it was noted that PwC will be represented with marquis signage at the top of the 1075 building. Other major tenants include The Boston Consulting Group Inc. and Seyfarth Shaw LLP.

"Our business and culture are based on building relationships, delivering value and winning in the global marketplace. 1075 Peachtree supports those elements locally for both our clients and our people," said PwC Market Managing Partner Gary Price. "The new building's impressive amenities and features, stunning architecture and prime Midtown location were too compelling to pass up," Price added.

"PwC embodies the international leader we envisioned occupying the space in 1075 Peachtree," said Doug Guedry, vice president of office leasing for Daniel Corp. "The firm's reputation for outstanding performance and exceptional innovation is in line with our mission to bring value to Midtown, and we look forward to collaborating with PwC as they build out a world-class office environment."

For more news and information visit Blumberg Capital Partners.