Agenda- Eastern Standard Time

Sam Zell is the Chairman of Equity Group Investments (EGI), the private investment firm he founded more than 40 years ago. The firm’s investments span industries and continents, and include interests in finance, energy, transportation, communications, healthcare and real estate. Zell is recognized as a founding father of today’s public real estate industry after creating three of the largest real estate investment trusts (REITs) in history.

CRE industry forecasts are predicting that global investment volume for 2022 will fall short of the record-high levels achieved last year. The main headwinds to growth include rising interest rates and high inflation, as well as uncertainty fueled by geopolitical issues related to Russia’s invasion of Ukraine. At the same time, there continues to be strong liquidity and plenty of dry powder targeting real estate assets. This panel will explore the near-term challenges and opportunities within the U.S. commercial real estate market. Some of the key topics to be discussed include:

• How are higher interest rates impacting cap rates and valuations?
• Fundamentals remain sound, but is the double-digit rent growth seen in some sectors sustainable?
• How are buyers and sellers adjusting expectations and investment strategies in a higher rate environment?
• For those looking for a hedge against inflation, what sectors represent the best buying opportunities?
• What are the biggest near-term risks on the horizon that investors need to watch?

In March, the Fed introduced its first rate hike since December 2018 and has indicated that it plans to continue raising the federal funds borrowing rate over the next 12 months to battle inflation. Investors that have enjoyed a long-run of incredibly cheap capital are bracing for higher costs ahead. What are the implications of higher interest rates for CRE investors? Some of the topics to be discussed include:

• What’s the near-term outlook for rising rates and lender spreads?
• How are higher rates impacting financing strategies and capital stacks?
• What are strategies borrowers can use now to mitigate rate risk and lower cost of capital?
• Are lenders tightening credit? What are the latest trends in underwriting and debt service coverage ratios (DSCRs)?

Although people are returning to the physical workplace, there are dramatic changes in worker behavior and expectations for the workplace experience. Office owners also are battling a heavy volume of sublease space along with tepid leasing activity. This panel will discuss some of the changes afoot in the office sector, and how that is influencing near, mid- and long-term investment strategies. Some of the key topics that will be discussed include:

• Office has traditionally been a staple within investment portfolios. How are investors viewing office allocations in the post-pandemic market?
• Is the flight to quality creating a bifurcated market of haves and have nots?
• How has the pandemic changed the amenities race? What are “must have” amenities for owners and tenants in the post-COVID market?
• What to do with obsolete office buildings? Can assets be cost-effectively renovated to fit demands of today’s occupants, or do they need to be repurposed to alternative or mixed-use assets?
• Suburban vs urban assets: where is office thriving?