Heitman

In the new AFIRE Summit Journal Mid-Year Almanac, Heitman’s Head of European Investment Research, Zubaer Mahboob, highlights the growth potential we anticipate for the self-storage sector in Europe. “Our experience with other specialty property types in Europe shows that those investors who engage with the sector today will stand to benefit from strong fundamentals and attractive returns, all while the sector moves along the path to institutionalization.” For our complete insights, read the full piece here: https://lnkd.in/gaNmgk7e

As part of #PrideMonth, Heitman’s EPiC (Equality, Pride, Inclusion, and Community) group hosted events honoring and supporting the #LGBTQ community and their history, resilience and ongoing efforts for equality.   ·  Heitman helped pack over 3,500 hygiene kits at Howard Brown Health’s Kiki event, benefiting the Broadway Youth Center. ·  Partnered with Out in Finance to host Steve Yacovelli, Ed.D. (he/him) —a.k.a. “The Gay Leadership Dude” — in our Chicago headquarters where he discussed the Top Three Strategies to be Resilient in Times of Change. (Photos by Steven M. Koch ) ·  Celebrated with Pride Month Happy Hours featuring treats from local LGBTQ owned businesses in our Chicago and London offices.   At Heitman, we recognize the importance of creating an equitable and inclusive workplace that we can take pride in, and we are excited to share the ways we continue to learn about the community and further support our LGBTQ colleagues and allies.   #Equality #Pride #Inclusion #Community #TransformTomorrowToday #LoveIsLove

“Curiosity and a desire to learn and improve are in our DNA,” Maury Tognarelli, CEO Heitman, believes the foundation of Heitman’s culture is providing an environment of transparency, integrity, and commitment. “Limitations extend only to what our people are capable of evolving to.”

Despite muted transaction activity across the real estate sector, Portfolio Manager of Heitman’s High-Yield Debt Strategy, Jon Lindell, sees growing opportunity for private lenders. “The market is still in the early stages of digesting the impact of elevated interest rates and deleveraging by traditional lenders. We think the dislocations created by those trends will continue to provide attractive investments for lenders with creative capital solutions.”

“With prevailing market conditions and Heitman’s track record in alternatives, attractive opportunities are being found in student housing, medical office, self-storage, and manufactured housing,” says Ashish Karamchandani, Co-Head of North American Acquisitions, at Heitman’s 2024 Investor Conference. "Additionally, leveraging Heitman’s structuring expertise, select opportunities in traditional property types like apartments and industrial are also being uncovered.”

"Heitman’s ability to find value in investments at any point in the cycle has been a key driver of success for its private real estate value add strategies,” says Mike Trench, Co-Portfolio Manager of Heitman’s North American value strategies. “It is important to have processes in place to recognize changes in a dynamic market environment and have the foresight to shift focus to capitalize on new opportunities that present themselves."

Gordon Black, Portfolio Manager of Heitman’s Global Real Estate strategy stated, “Diversification is especially helpful in private real estate markets, which are generally less correlated with one another than are public equity markets. We moreover observe that correlations between real estate markets have fallen over the past five years, increasing these benefits from diversification.”

“We believe today’s market environment provides an attractive entry point for value-add investments,” says Thomas McCarthy, Co-Portfolio Manager of Heitman’s North American value add fund series, as he discusses Heitman’s philosophy for finding attractive investment opportunities. “This includes, but isn’t limited to, executing through the firm’s diverse set of operating partners, leveraging our past successes, and identifying ways to repeat them, and leaning into thematically driven delinked sectors, such as alternatives and living strategies.”

Reviewing the state of the property sectors Emi Adachi, Co-Head of Heitman’s Global Research concluded, “We believe most property sectors are quite healthy today and despite some near-term challenges, what remains intact are our investment themes that favor resilient sectors benefitting from diversified demand drivers and structural tailwinds that will continue to support demand.”

Despite a reshaping of interest rate expectations over recent months, Co-Head of Heitman’s Debt Business, David Maki, still sees opportunity. “Banks share of the lending market has retreated from 39% to 20%, we believe this is creating opportunity in the market for lenders like Heitman.”