Autumn Conference 2024: Highlights

Andrew Angeli, Global Head of Real Estate Research & Strategy at Zurich Insurance, shared an optimistic yet measured outlook on real estate markets, emphasising opportunities amid ongoing challenges. Historically, real estate returns in the U.S. have shown only minor differences under Republican and Democratic administrations. However, longer-term risks are increasingly environmental, requiring investor focus on climate adaptation. 

Transaction volumes remain subdued, forecasted at $1 trillion for 2024—lower than recent peaks but healthy compared to historical levels. Liquidity is improving, with lenders re-entering the market and ODCE funds balancing net outflows with growing inflows. Listed real estate (REITs) had a strong year, with valuations stabilising, while secondaries in U.S. and non-core European markets may offer compelling opportunities. 

In the office sector, low new supply and a push for workers’ return highlight evolving dynamics. Angeli stressed the importance of core office locations and noted a repricing trend across Europe, which he prefers over U.S. markets for current investments. Swiss real estate stands out as a safe haven with low inflation and attractive yield spreads, though hedging costs are a barrier for non-Swiss investors. 

While data centres appeal due to AI investment potential, their high carbon intensity challenges Zurich's focus on reducing portfolio emissions. Investors are also underallocated in green infrastructure, presenting another area for growth. 

Concluding, Angeli pointed to cautious optimism for the sector, noting that it could be a fine vintage in the making. 

Audience poll: 

How confident are you about the prospects of the European non-listed real estate market over the next 12 months? 

• Very confident - 6% 
• Somewhat confident - 64% 
• Neutral - 14% 
• Somewhat pessimistic - 13% 
• Very pessimistic - 2% 
• Don’t know - 1% 

How has the current macroeconomic environment most influenced your organisation’s non-listed real estate investment strategy in Europe? 

• Increased focus on core assets - 9% 
• Exploring higher-yielding alternative assets - 28% 
• Delaying/reducing new acquisitions - 9% 
• Prioritising asset disposals - 14% 
• Focusing on operational improvements in existing assets - 28% 
• No significant changes - 14% 

Click here to view and download the presentation by Andrew Angeli

In this session, our guest experts examined how the real estate sector can adapt to systemic challenges through sustainability, innovation, and profitability. Presentations and discussions by Suzy Glass (Brae), Sasha Silver (Redevco), and Rune Kock (NREP) offered insights and actionable strategies for transformation.

Suzy Glass, Co-CEO at Brae, highlighted the critical need for corporate transition plans to address current global challenges:

• Systemic crises: Climate change, biodiversity loss, water challenges, geopolitical tensions, and social instability.
• Regulatory push: Frameworks like SFDR and CSRD are embedding ESG disclosure and sustainable practices into business operations.

Glass stressed that these chaotic times offer opportunities for adaptive companies to thrive, with decarbonisation, social inclusion, and other measures unlocking significant potential. Transition plans must incorporate culture, governance, and stakeholder engagement across value chains to drive meaningful transformation.

The panel discussion centred on transition planning and business transformation.

Actionable takeaways included:

1. Embed ESG into core business practices: Integrate decarbonisation and other ESG priorities into operations, using them as a third dimension in risk-return frameworks and fiduciary duties.
2. Prioritise collaboration and partnerships: Align with tenants, partners, and stakeholders to co-develop solutions and drive collective sustainability efforts.
3. Leverage innovation for transition: Pursue investment opportunities in eg. CO2-neutral buildings, brown-to-green lending, and affordable housing, using tools such as carbon pricing to guide decisions.
4. Adopt an agile and experimental mindset: Embrace iterative approaches like agile project management, encourage experimentation, and remain open to reinvention to adapt to evolving challenges.
5. Take immediate, scalable action: Start with knowledge sharing, set clear targets (e.g., board-level emission pathways), and focus on scaling proven initiatives while investing in R&D to identify impactful innovations.

Audience poll:

Which external factor do you think will most drive business model transformation in the next decade?

• Geopolitical tensions – 13%
• Macroeconomic conditions – 8%
• Regulation (focus on climate, nature, social) – 18%
• Cultural norms (changing expectations) – 5%
• Changing market demand – 19%
• Technology – 35%
• Other – 1%

Where do you think your company will be in 10 years’ time?

• An industry leader – 67%
• Consolidated into another company – 14%
• Still a smaller/niche player – 14%
• No longer in existence – 5%

Click here to view and download the presentation by Suzy Glass

In this keynote presentation by Jahkini Bisselink, Youth Participation & Gen Z expert from Whetston, she began with an interactive question: “What do you associate with Gen Z?” Audience responses were largely negative, including terms like “lazy,” “demanding,” and “self-focused.” The speaker then presented magazine covers from the past, showing similar criticisms directed at Millennials, Generation X, and Baby Boomers during their emergence. She emphasised that negative perceptions often stem from life cycle biases rather than generational traits.

To foster a better understanding of Gen Z in the workplace, she highlighted three key characteristics:

1. Entrepreneurial Spirit
   Gen Z’s entrepreneurial mindset is driven by fear of an uncertain future and the belief that a 9-to-5 job alone won’t ensure financial security. They also want to feel involved in shaping their work environment. Jahkini’s recommendation is to establish "shadow boards" for Gen Z employees to contribute ideas, embrace their side hustle culture and actively include them in decision-making processes.
2. Activist Mindset
   While Millennials focused on raising awareness in the 2010s, Gen Z is action-oriented, seeking alignment between brand values and tangible actions. They may appear radical but are pragmatic, understanding that meaningful change takes time. Jahkini advised leaders to share the full picture with Gen Z—the good, the bad, and the ugly—and prioritise action over rhetoric to build trust.
3. Focus on Mental Health and Wellbeing
   Growing up amid global crises, Gen Z faces declining mental health and is deeply concerned about the future. Over half of Gen Z believes the world is “doomed,” making them the most stressed generation. They value emotional intelligence (EQ) in leaders and colleagues over traditional intelligence (IQ). Jahkini suggested providing mental health support and fostering a work environment that prioritises empathy and emotional wellbeing.

The session concluded with actionable insights for leaders to make space for the side hustle culture, let the next generation in on the good, the bad and the ugly, and make sure that leadership prioritises both EQ and IQ. Doing that will create purpose-driven environments that align with Gen Z’s values and needs. 

Audience poll:

Which generation are you?

• Baby boomer (1940-1959) - 2%
• Gen X (1960-1979) - 47%
• Millennials or Gen Y (1980-1994) - 44%
• Gen Z: (1995-2010) - 7%

What do you think is the biggest challenge of working with Gen Z?

• Aligning expectations around work-life balance - 45%
• Addressing different communication styles - 13%
• Providing purpose-driven work - 15%
• Bridging gaps in industry knowledge and experience - 12%
• Managing flexible and remote work preferences - 9%
• Other - 6%

Click here to view and download the presentation by Jahkini Bisselink

In this keynote fire-side chat, Steven Cohen, Co-President and Co-COO at AEG and Ian Marcus, Senior Adviser at Eastdil Secured explored how the convergence of real estate and entertainment creates sustainable, long-term investment opportunities. They highlighted key drivers such as the growing demand for live experiences and the transformative economic impact of entertainment hubs.

Cohen shared the success story of The O2 in London, which evolved from the struggling Millennium Dome into the world’s leading music and entertainment venue. Acquired for £1, the redevelopment required significant investment and meticulous planning, integrating infrastructure like Thames Clippers for transit and focusing on community benefits. Similarly, the Uber Arena in Berlin emerged from an environmental disaster site, undergoing eight years of redevelopment to become a thriving entertainment campus. Both examples underscore the potential for revitalising urban spaces through thoughtful planning and collaboration with local stakeholders.

The speakers emphasised the importance of integrating entertainment projects into local economies and cultures to ensure they enhance rather than disrupt communities. They also stressed that a long-term vision, supported by sustainable practices and stakeholder cooperation, is vital for these ventures to succeed.

Looking ahead, Cohen noted the increasing influence of Gen Z, who prioritise experiences over material possessions, driving demand for live entertainment venues. Reliable infrastructure, such as innovative transport solutions, also plays a critical role in supporting these developments. Additionally, the rise of e-sports and large-scale events like “League of Legends” championships offers new, scalable investment opportunities.

Cohen and Marcus concluded that strategic investments in entertainment and real estate require balancing economic viability, technological innovation, and community integration. These projects not only yield financial returns but also foster cultural and economic growth, making them sound investments for the future.

Click here to view and download the presentation by Steven Cohen and Ian Marcus

In this final session of the conference, Nikodem Szumilo, Associate Professor at UCL and Director at Bartlett Real Estate Institute, showcased how artificial intelligence (AI) is revolutionising the real estate industry by moving beyond traditional software capabilities. With its ability to analyse vast datasets and adapt in real time, AI is driving innovation and efficiency across various facets of the sector.

Generative AI, a central focus of the session, demonstrated its capability to create content, identify patterns, and deliver actionable insights. Current applications include automating routine tasks like drafting emails, legal documents, and investment memorandums. AI is also enhancing data analysis by unlocking insights from unstructured data, optimising marketing, property searches, and planning for smart buildings. Emerging uses include improved valuations, construction management, debt financing, and negotiation strategies.

Szumilo brought these ideas to life through live demonstrations, showing how AI simplifies processes such as summarising reports, performing financial analyses, and visualising data with interactive tools. Real-world examples highlighted its role in understanding regulations and streamlining complex decision-making processes.

Ethical considerations were also addressed, with an emphasis on responsible AI implementation to maximise its benefits while minimising risks. Szumilo underscored the need for a balanced approach to avoid misuse and ensure fair opportunities across the sector.

AI’s influence is reshaping the way work is done, focusing on automating routine tasks while enabling strategic, high-value activities. It is also transforming the roles within the industry, offering new opportunities for creativity and innovation. Szumilo concluded that AI’s transformative potential makes it a vital tool for growth and innovation in real estate, ensuring the industry stays competitive in a rapidly evolving technological landscape.

Audience poll:

How is your organisation currently integrating AI in its real estate operations?

• For property and maintenance (e.g. predictive maintenance) – 0%
• Enhancing investment analysis and decision-making – 17% 
• Improving the tenant experience – 3%
• Generative AI (eg proprietary ChatGPT) – 36%
• Other use of AI – 5%
• Exploring AI but not using it currently – 36%
• No plans to incorporate in AI – 3%

Click here to view and download the presentation by Nikodem Szumilo

A special thanks to our conference moderator, Andrea Carpenter Founder of Diversity Talks Real Estate, who skilfully navigated the day's proceedings, engaging speakers with insightful questions and ensuring everything ran seamlessly.