One of the most significant realizations that I will take away from my tenure as NAREIT Chair is the significant, ongoing growth of the REIT approach to real estate investment across the globe.
This edition of REIT magazine highlights some of the ways that we’re seeing securitized equity real estate investment spread internationally. More than 30 countries currently have REIT regimes in place. Importantly, as detailed in this issue, the governments of two of the world’s largest economies, China and India, are working to build solid foundations for REIT industries in their countries.
They might look to Mexico for guidance on establishing a functioning REIT market. The rise of FIBRAs, Mexico’s version of REITs, such as Fibra Inn, whose CEO Oscar Calvillo is the subject of this edition’s “One-on-One” feature, has helped facilitate institutional investment in real estate across the country.
While REIT regimes are taking hold in new markets, we’re also witnessing more cross-border investment in real estate. Sovereign wealth funds are looking to the United States real estate market for stable assets, supplying yet another source of fresh capital for U.S. REITs. Additionally, these large institutional investors are partnering with REITs on joint ventures, both in the U.S. and abroad.
NAREIT and its partners in the Real Estate Equity Securitization Alliance (REESA) have collaborated to support the growth and evolution of the global REIT industry along the way. Notably, REIT rules around the world are converging. Investors have more assurances than ever that REITs will operate under similar conditions from country to country. REESA has promoted that type of comity since its inception.
Globalization and convergence will continue to be major themes for the REIT industry as we head into the future. I feel confident that the efforts of NAREIT in the past year have helped to make that future a promising one, which is a credit to all the team at NAREIT. It has been my pleasure working with them for the last 12 months as NAREIT Chair.
I look forward to seeing all of you in November in Las Vegas at REITWorld 2015: NAREIT’s Annual Convention for All Things REIT.
President & CEO
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