CBRE 4Q16 Earnings Call Notes

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Bob Sulenic

No material impact from higher interest rates

“Yes. David, it may have had a slight impact on the appetite in the pricing, but not a material impact. We still see a lot of capital that wants to go into real estate. If you look at last year, there was various press written about lower volumes, but it’s worth keeping in mind that, that’s relative to 2015, which was the strongest year in a decade and last year was still very, very good by comparison to the previous decade other than 2015. We are going into this year with the assumption that interest rates will go up modestly and that capital flows into real estate and trading velocity will be similar to last year.”

Generally expecting a good year in 2017

“we saw choppiness earlier in the year, but the fourth quarter was strong and the year as a whole looks strong and we expect that to be a similar circumstance in 2017. We expect to see volumes similar to what we saw in ‘16. We are hoping and expecting to take a little market share as we have over the past few years. And as I commented earlier, with regard to the interest rates, they will probably tick up a bit. That may put a little pressure on sales. But also, there is a circumstance out there where in general, institutions are under-allocated to commercial real estate by about 100 basis points relative to where they want to be. So that could be a positive impact. So in general, we are expecting a good year and we are expecting to perform well and take some more market share.”