Elite Investors: Industrial and Multifamily are In, Net Lease is Out
New York (May 5, 2014) - United Realty, a leading sponsor of commercial real estate alternative investment programs that includes the $1 billion United Realty Trust, released the results of the first-ever United Realty/Zogby Real Estate Confidence Index, which indicates a strong view of the U.S. commercial real estate market despite expectations for rising rates, as well as a preference toward adding industrial and multifamily and unloading net lease properties.
The United Realty/Zogby Real Estate Confidence Index is designed to provide an inside look at how major institutional and elite real estate investors view the market.
Highlights of the Q1 2014 United Realty/Zogby Real Estate Confidence Index include:
- 96 percent of respondents view the current market as somewhat or very attractive.
- By a ratio of more than 4:1, respondents view the market as improving or staying the same over the next 12 months.
- 81 percent of respondents anticipate a 50-200 basis point increase in the 10-Year Treasury rate over the next 12 months.
- Industrial and multi-family are seen as most attractive sectors today and over the next 12 months.
- Nearly one in five respondents plans to reduce net lease property holdings over the next 12 months.
- Value-added and opportunistic properties are seen as more attractive than core properties over the next 12 months.
- Demand for commercial properties will exceed supply, and availability of financing is expected to improve.
"Despite predictions of rising rates, United Realty sees strong investment opportunities in the coming year," said Jacob Frydman, Chairman and CEO of United Realty. "The survey indicates a preference for multi-family, a smart investment in a rising interest rate environment."
Compiled from interviews with select institutional and elite commercial real estate investors, the United Realty/Zogby Real Estate Confidence Index will be released quarterly to provide real estate professionals with a detailed look at their peers' investment confidence and expectations.
"United Realty is pleased to partner with Zogby Analytics to provide this new data to the real estate investment community," said Frydman. "We believe that the United Realty/Zogby Real Estate Confidence Index provides a unique insight into the minds of elite real estate investors and will help managers and advisors make more informed investment decisions."
Full details of the United Realty/Zogby Real Estate Confidence Index can be found at www.unitedrealtycos.com. The United Realty/Zogby Real Estate Confidence Index is developed and conducted by United Realty in conjunction with the world-renowned Zogby Analytics Organization.
About The United Realty Group of Companies
The United Realty Group of Companies, established by veteran real estate investor Jacob Frydman, sponsors and manages a platform of commercial real estate investment programs, including United Realty Trust, an SEC registered public +$1 billion Real Estate Investment Trust (REIT) and other real estate based alternative investment products and funds.
Building on its founder's successful track record of investing and advising on more than $2 billion in commercial real estate transactions through multiple real estate investment cycles, United Realty leverages the experience and financial acumen of its management team to capitalize on investment opportunities in commercial real estate. Those opportunities involve numerous property types, including office, industrial, retail, hospitality, multifamily and age-restricted residences, and other real estate related assets.
United Realty strives to develop innovative, best-in-class, real estate financial services products that are generally not available from other firms. These investments are designed to meet or exceed the needs of investors and to rigorously protect invested capital, while generating above-market, risk-adjusted, returns. Through its United Realty Securities affiliate, United Realty distributes its products through a national sales team dedicated to the independent broker dealer community and RIAs across the country.
About Zogby Analytics
Zogby Analytics, founded by widely acclaimed pollster John Zogby, brings four decades of experience in measuring attitudinal behaviors of a wide array of sectors, target audiences and geographic locations all over the world.
Zogby Analytics is respected nationally and international for its opinion research capabilities. Its research teams understand the need to get the most out of every project for every client, utilizing time-tested techniques and methodologies. Specifically, Zogby Analytics empower their clients with powerful public and professional opinion-based information that provides knowledge and insights necessary for making strategic decisions.
The Zogby Analytics team has provided consulting services and conducted public opinion research that have covered various topics, including consumer and business behavior and preferences, political attitudes, international relations, financial outlook, career satisfaction, media consumption, social media usage, social change, cultural and social values, and health issues. Zogby Analytics' commitment to excellence is reflected in its devotion to precision in sampling, survey instrument design, and readable and actionable analysis.
Media Contact:
Greg Menken
201-465-8017