This is the fifth and final post on the 17th Annual Real Estate Trends conference organized by VCU and held at the Richmond Convention Center on October 9, 2007. It was my second time attending, and it was much more informative than the last. The final speaker was Bret Wilkerson, CEO of Property & Portfolio Research (www.ppr.info). Mr. Wilkerson presented a wealth of information, most of which is not easily disseminated without a master’s degree in economics. That said, most of his presentation revolved around the slides/graphs which, once one takes the time to study them, are very informative. I have included several of them in this post.
So what does this chart command us to do? I guess it orders investors to make real estate the 2nd or 3rd largest portion of their investment portfolios. Seriously though, I’m surprised that real estate doesn’t show a stronger return in the 5- and 10-year columns.
How about this one? I read that Richmond is perhaps building too much retail space.
This presentation didn’t include much on the office market in Richmond. Here is a graph with a projection for the industrial market.
So Mr. Wilkerson is projecting 15% NOI growth for industrial property in Richmond over the next 5 quarters…seems reasonable. I interpret the cap rate side of the graph to say that Richmond’s industrial property will command cap rates almost 50 basis points higher than the national average.
That’s it for my summary of the VCU Real Estate Trends conference. If you would like additional information on any of the speakers, I’m happy to provide it.