PRE Returns from Annual Conference
On October 13-14, real estate industry leaders, faculty, and students gathered at JP Morgan’s conference center in Manhattan for the Cornell Real Estate Council’s 29th annual Real Estate Conference. The theme of this year’s Conference was “The Wide World of Real Estate: Globalization of Investment and Development.” The conference was chaired by Allen Smith (Cornell ‘80), CEO of Prudential Real Estate Investors, and was coordinated by Mark Foerster, the C. Bradley Olson Real Estate Faculty Fellow at Cornell. Given the timeliness of this topic, and the outstanding line up of speakers assembled for this event, seating at the Conference was sold out.
Pre-conference events began with a Career Summit luncheon on Thursday. The Career Summit was led off by David Funk, Director of the Cornell Program in Real Estate (PRE), who delivered the PRE’s annual Job Barometer Report on the commercial real estate industry, which is done in conjunction with employment search firm Select Leaders. Anthony J. LoPinto, Senior Client Partner and Global Sector Leader for Real Estate at Korn/Ferry International, discussed career trends and strategies for real estate professionals in the midst of challenging market conditions. Following the luncheon, two panels of industry experts discussed topics in hiring and human resources, allowing students and real estate professionals to gain greater insights on a number of employment related issues. Finally, 12 leading companies participated in an Employer Showcase, providing these companies with an opportunity to explore available employment opportunities with Cornell real estate students.
The Conference officially kicked off Thursday evening with an opening reception, dinner, and Keynote Address by Jonathan Gray, Senior Managing Director and Co-Head of Real Estate at Blackstone. Hamza Bennani, PRE Class of 2013, stated that he was “impressed by Mr. Gray’s insights and seemingly contrarian views on investment opportunities in the real estate market.”
The Conference continued on Friday morning, as the stage was set with a review of economic fundamentals affecting demand for commercial real estate, at home and abroad, by Mark Zandi, Chief Economist of Moody’s Analytics. Viewing domestic as well as international fiscal policy and monetary conditions, Mr. Zandi’s remarks were both cautionary as well as optimistic.
A significant part of the annual Conference is the participation of industry leaders on panels that focus on pertinent topics, and on Friday three panel discussions took place. The first panel on “Global Capital in North America” focused on the magnitude of capital flows, and the extent to which international investors are playing a role in North American real estate markets. The second panel, on “International Investing,” focused on where substantial debt and equity is being deployed elsewhere, how investors deal with fiscal and political uncertainty in more volatile markets abroad, and investor sentiment in executing those investments. The recurring theme among panelists was “Brazil”, as they extolled the virtues of the Brazilian economy and real estate market and emphasized its competitive advantages over other BRICS countries. Panelists encouraged the conference attendees to also consider distressed opportunities in Europe as a huge deluge of loans mature and bulk dispositions are pursued.
As the group transitioned to lunch, Abby Joseph Cohen (Cornell ‘73), President of the Global Markets Institute at Goldman Sachs, delivered further insights on the current real estate market. Ms. Cohen stated that although we are in a challenging market, developers must be willing to face dynamic, challenging projects head on. More specifically, these projects might increase density, have nearby transit options, and address education reform issues, among a host of other considerations. Ms. Cohen’s economic data highlighted the overarching themes of the conference – most notably the strong growth in the BRIC countries over the past 10 years – and offered a refreshing macro-economic perspective on the state of the major global economies. Ms. Cohen also offered insight with respect to the realm of public construction, where state and local spending has increased 25% over the past decade and remains a bright spot against an otherwise challenging construction environment.
The Conference wrapped up with a final panel discussion on “Development and Construction Abroad.” Here, developers and architects shared their successes, as well as the challenges that they have faced when entering into development opportunities in unpredictable international markets.
Mr. Smith thanked JP Morgan for hosting the Conference and stated that “our 2011 conference continues a long tradition of assembling a strong group of thoughtful, forward thinking speakers in a conference atmosphere where participants enjoy a great learning and networking experience.”
Cornell’s Program in Real Estate offers a comprehensive, professional graduate level curriculum that educates the next generation of real estate industry leaders taught by the largest on-campus real estate field faculty in the country. Cornell is also home to the Cornell Real Estate Council, an extensive network of industry leaders, the Cornell Real Estate Review, conferences, research and industry news, and more. Further information regarding the Cornell Program in Real Estate and the 2011 Cornell Real Estate Conference can be found at www.realestate.cornell.edu. Visit often to discover real estate at Cornell.