Griffin Partners: Maximizing the Value of Real Estate Assets
Announcement posted by marcus evans, summits division 28 Nov 2011
Private wealth managers looking at real estate investments should make sure they understand the exact leverage characteristics of the investment, fund and manager, advises Edward Griffin, President, Griffin Partners. They must avoid the pitfalls that were exposed in the recent economic downturn, Griffin adds.
A commercial real estate investment, management, development and leasing company, Griffin Partners is a solution provider at the marcus evans Private Wealth Management Summit Fall 2011, which will take place in Las Vegas, Nevada, December 5-7. Ahead of the event, Griffin shares his outlook on real estate markets and how to maximize the value of assets.
What are your projections for the US real estate market, and how would that impact the private wealth management space?
Edward Griffin: I expect the US real estate market to improve gradually, but that will be geography-specific. Real estate demand is a function of job growth, so the markets that have the most job growth will experience the largest increase in demand. This will bring about opportunities for successful investment in both opportunistic and value-added investment strategies. The improvement in the capital markets is allowing liquidity back into the commercial real estate market, facilitating a larger volume of investment opportunities.
How do you identify the real estate projects that can grow in value?
Edward Griffin: It is important for family office directors to consider the investment basis as a function of replacement cost. One should always look for opportunities to acquire assets at a basis that is below replacement cost. With a few exceptions, this can be done in most markets.
Tenant diversification in the portfolio or asset is another issue that investors should pay attention to; there should not be an asset where the failure or departure of a single tenant can create distress for the entire asset.
How could private wealth managers maximize the value of their clients’ real estate assets?
Edward Griffin: The most significant impact on private real estate investment is the use of leverage. Private wealth managers must understand the exact leverage characteristics of the investment, fund and manager. They must avoid the pitfalls that were exposed in the downturn. They need to understand the leverage profile whether it is a direct investment or through a manager. It is always best to be on the conservative side.
Investors should also consider working with managers who have a successful track record of proactively managing real estate assets, as these assets typically require the re-investment of capital and an active management strategy to ensure they continue to be as functionally efficient as possible and suitable for the needs and demands of their users.
Are there countries or types of real estate assets that you would particularly recommend to investors?
Edward Griffin: Demand for real estate is always a function of demographics. Investors might want to look at some of the opportunities in the Latin American countries, due to their rapidly growing populations or towards Asia for the massive rural to urban migration.
What are the trends related to the industry that you see playing out in the near future?
Edward Griffin: One macro trend that is significantly impacting real estate is that of maximizing efficiencies; a function of being in a low growth environment, where businesses are keen to operate at maximum efficiency.
Real estate is a large component of operating costs, so corporate managers are very focused on maximizing the use of existing space. A theme in the office market today is having more people in less space. In the industrial market it means having assets as close as possible to the major distribution points.
Contact: Sarin Kouyoumdjian-Gurunlian, Press Manager, marcus evans, Summits Division
Tel: + 357 22 849 313
Email: press@marcusevanscy.com
About the Private Wealth Management Summit Fall 2011
This unique forum will take place at the Red Rock Casino, Resort & Spa, Las Vegas, Nevada, December 5-7, 2011. Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The Summit includes presentations on unconventional investment strategies, Federal Tax Policy challenges, risk management strategies and the family office governance structure.
For more information please send an email to info@marcusevanscy.com or visit the event website at www.privatewealthsummit.com/EG_PR
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About Griffin Partners
Griffin Partners is a commercial real estate investment, management, development and leasing company. With more than three decades of experience, the firm’s principals have the skills and knowledge to evaluate a property or project and create the right strategy to maximize its value or result. Griffin Partners specializes in acquiring and managing key commercial properties that increase value and provide attractive returns for investors. Our team offers a full range of services to corporate and institutional real estate owners, including development, investment management, acquisition and disposition, asset and property management, marketing and leasing.
About marcus evans Summits
marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-on-one business meetings. For more information, please visit www.marcusevans.com