Sam Zell recently spoke at the CFA Institute's 62nd Annual Financial Analysts Seminar.
“I’m a student of demand and when demand is there, I look at the cost of fulfillment.”
Sam isn't upbeat about US commercial real estate:
“Last year, I was saying that the CRE industry was relatively benign and supply and demand was in balance,” he said. “In the last 18 months, however, there has been an enormous increase in supply.”
Both multifamily residential and office space in the US are seeing strong supply growth while occupancy rates are on the decline. “We are behind the rest of the world in terms of adapting to shrinking office space.”
Zell is more focused on opportunities in emerging markets.
Full blog post here: