‘The World is Starting to De-Correlate’

“There are a lot of natural hedges” in being well diversified, said Adler.

NEW YORK CITY—“It is hard to know what to make of the outlook for global real estate markets,” writes Peter Hayes, managing director and global head of investment research with PGIM Real Estate, in a new report to clients. Hayes notes both reasons for optimism and the “sense of caution” that prevails, in part because, as he also observes, “it is clear that property returns are starting to moderate.”

What’s also clear, as CEO Eric Adler pointed out, is that cross-border investing is increasingly prevalent. “Over 50% of the money we have raised for different strategies across the world over the past five years has come from non-US investors,” Adler said at media briefing Wednesday. Furthermore, he said, more than 30% of the capital committed by PGIM Real Estate’s investor base globally comes from clients pursuing real estate strategies outside their own markets.