NREI_INSTITUTIONAL OUTLOOK_ Penton Media January 28, 2010 If you want to view this on the web go to: http://enews.penton.com/enews/nrei/v/789 TOP STORY --Institutions Once Bitten, But Not So Shy By Ben Johnson Institutional investors are making big plans to invest more heavily in commercial properties in 2010, despite major write-downs that have left some portfolios worth half of their value since the market peak in 2007. Leading the way as one of the pension fund bellwethers is the California Public Employees' Retirement System (CalPERS), with $206 billion in total assets under management. Its chief investment officer, Joseph Dear, says he is not afraid to jump back into the steaming cauldron that is the commercial real estate investment market, even after being badly burned in the last two years. To view the full article go to: http://nreionline.com/finance/news/institutions_bitten_0128/ CAPITAL TRENDS --High-Beta Markets May Provide Opportunities as Market Recovers By David Lynn Real estate pricing is a function of supply and demand. Since each market has different underlying demand drivers and supply constraint characteristics, investment returns vary. Compared to the NCREIF Property Index (NPI), returns for some markets are historically more volatile than others. Market volatility, defined as beta (_), is not necessarily a negative feature. Markets with higher volatility often outperform the NPI index in an upturn of the real estate cycle. However, like leverage, this characteristic can also accentuate a market decline. Applying the financial concept of beta suggests a potential investment strategy during the anticipated real estate recovery, with an overweighting of high-beta property sectors and markets. To view the full article go to: http://nreionline.com/finance/news/high_beta_markets_opportunities_0128/ ONLINE EXCLUSIVE --Distress Investors Say Real Estate Offers Best Opportunities in 2010 By Denise Kalette Institutional and hedge fund investors in distressed debt say real estate offers the greatest opportunities for investment this year, according to a new survey, the North American Distressed Debt Market Outlook 2010. Commercial real estate, in particular, was named a top investment choice. However, respondents note that as the market recovers, yields may not be as high as they were when distress was more severe. A steady flow of workouts as commercial leases expire and investors fall into delinquency and default is expected to continue to provide distressed investment opportunities in commercial real estate, according to the survey. The largest group of respondents (41%) singled out real estate as offering the best investment opportunities, while the second-largest group (33%) gave equal weight to consumer products, financial services and the stock of large industrial companies. The interest in real estate represents a departure from last year, when just 19% of respondents indicated they would focus on real estate investment. To view the full article go to: http://nreionline.com/finance/news/distress_investors_best_opportunities_0128/ Advertisement ---------------------------------------- Join the leading players in US and international real estate for a concentrated day of over 25 discussions addressing the most pressing issues driving the business today. There will be no speeches, no panels, no presentations. 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