What Our Power 100 Honorees Think About New Asset Classes
In their own words ...
By The Editors May 15, 2024 8:30 am
reprints
“When you have disruption in the markets and excess supply, it tends to be an opportunistic time to invest.” —J.P. Morgan Asset Management’s Chad Tredway
“I think we will see more and more opportunities coming from the banks. There is going to be a lot of opportunity to buy things that are in distress.”
—Island Capital’s Andrew Farkas
“We believe that data center development will be a primary focus as the industry continues to experience a mismatch between supply and demand driven by growth of the cloud and AI applications.” —Affinius Capital’s Laurie Golub
“The city can’t just be a museum with building stock that’s 50 to 75 years old. [It] needs to reinvent itself with new product, and we and others have now shown that there is a significant demand and need in the market.” —SL Green’s Marc Holliday on new office development
“Many office owners are facing existential risks, given slow leasing and limited secured financing, and many institutional owners want to diversify away from the office asset class.”
—BXP’s Owen Thomas
“Critical to long-term success in CRE investment is not just dealing effectively with problems, but also seeing that crisis and opportunity are opposite sides of the same coin.”
—Savanna’s Nicholas Bienstock
“They don’t have to be new construction. They can be really great buildings that can be reconstructed or have outdoor spaces, amenities, great food options, and big floor plates.”
—CBRE’s Bill Shanahan on office buildings
“We have $38 billion worth of opportunity embedded in [our] land bank. We have entitlements. We have the teams. They’re all geared up, ready to start. We can literally pull the trigger on $10 billion, $12 billion of that tomorrow.” —Prologis’ Dan Letter on warehouse development
“Despite continued uncertainty with respect to the direction of the economy and turbulence across many sectors within commercial real estate, the demand-supply backdrop for senior housing gets better with each passing day.”
—Welltower’s Shankh Mitra
“We think there’s going to be enormous bifurcation in markets that have rental growth going forward and markets that don’t, and the only way in our judgment to understand those trends is through analyzing demographics and other structural market data, so that’s where we really invested heavily.” —BGO’s John Carrafiell on investing in logistics, data centers and cold storage
“I’m not one to be exclusive. Office is not a bad word here. … I’m happy to play wherever
somebody needs liquidity.”
—Oxford Properties’ Varuth Suwankosai
“I think building out [the] whole chip supply chain and then building out power and data center capacity in places around the world, inside the U.S. as well as other countries where it really makes sense, where you really have runway, is going to be key to our providing the supply that all of these customers … are indeed demanding.” —AWS’s Adam Selipsky on its strategy for data centers
“When we find the right opportunities, they could be mixed-use with a retail component. … But we also are looking across all asset classes where there might be an opportunistic play.”
—Thor’s Melissa Gliatta
“When you’re in the money, and you’re in a position to make a profit, you should do that.”
—Cabot Properties’ Franz Colloredo-Mansfeld
