Office Product Severely Under Capitalized

LOS ANGELES—Office product is severely under capitalized in equity, according to Jim Hime, chief financial officer at USAA Real Estate Co., and as a result, the company incorporated office product into its current strategy. Hime sat down with us for an exclusive interview at RealShare NATIONAL INVESTMENT & FINANCE to discuss the firm's strategy and his outlook on the market. In the interview, he tells us:

• The firm's investment goals for the year
• Its recent partnership with Brackett Flagship Properties, and other partnerships it has planned
• Which geographic markets are offering the best returns

Hime spoke on the "Heavyweights: Institutional Investment Strategies" panel at the conference, where he and his fellow panelists talked about where we are in the cycle. The panel agreed that critically evaluating the market is integral to surviving the next cyclical downturn.