EXPERTS SHARE INSIGHTS ON INSTITUTIONAL CAPITAL



The May 24 “Industry Insights” event from The Real Estate Council and Real Estate Deal Sheet took a dive into institutional capital. Keynote speakers Michael Easson and Adam Geha, co-founders of EG, flew in from Australia to discuss their unique approach to risk management and their proprietary software they say analyzes data better than “misleading spreadsheets.” Following their talks, representatives of institutions discussed what they’re seeing in the current market and how they’re navigating the ever-changing real estate industry. Here are some of the takeaways: 


 

RYAN BAILEY — Children’s Medical Center
“In [fund managers’] personalities, we look for humility. I want an individual to know what he or she is good at and what they’re not. I also look for discipline. The discipline to say, ‘when the environment is not in my favor, I step down.’”


 

GREG KRAUS — Invesco Real Estate
“We’re seeing disruption in our industry. We’re seeing our tenants accessing real estate in a different sort of way. I think we’re all trying to be extremely thoughtful in pursuing the right assets.”


 

DAVID EVEMY — Sarofim Realty Advisors
“The big thing we look at is technological change and immediately there’s disruption … we’re going to have self-driving cars, we’re going to have robotics, we’re going to have all these things that are coming, and they’re going to transform how we use real estate.”



DAVID KELLY — Teacher Retirement System of Texas
“If you really want to get something done with us, come see us early, come see us often, and come see us with no agenda in mind other than to understand what it is we are attempting to do.”



ADAM CIBIK — Employee Retirement System
“Big picture, we use [CRE investment] as a diversifier because we have a lot of equities and bonds in the portfolio.”



MICHAEL EASSON — EG
“We’re biologically programmed to try to avoid [risk], the rich actively think it, but then only to minimize it.”


 

CHRIS NELSON — Goldman Sachs
“We’re much more focused on higher-quality assets, better locations, and we really focus on our downside cases.”



ROBERT CURRAN — J.P. Morgan
“The urban multifamily is currently at a supply demand imbalance with a lot of supply and hopefully continued demand.”


 

ADAM GEHA — EG
“If you’re not measuring timing risk, you’re not managing it.”