{"id":181369,"date":"2024-09-26T19:28:45","date_gmt":"2024-09-26T19:28:45","guid":{"rendered":"https:\/\/capitalsq.com\/?post_type=expertise&#038;p=181369"},"modified":"2024-10-30T13:11:25","modified_gmt":"2024-10-30T13:11:25","slug":"present-drivers-of-real-estate-investment-demand","status":"publish","type":"expertise","link":"https:\/\/capitalsq.com\/expertise\/present-drivers-of-real-estate-investment-demand\/","title":{"rendered":"Current Drivers of Real Estate Investment Demand"},"content":{"rendered":"<p class=\"appear-on-scroll\">In the present market, real estate investment demand is an evolving story \u2013 a story we\u2019re living and a story we\u2019re dissecting in real time. Capital Square exists in a unique position to seize upon this moment, and the <a href=\"https:\/\/bluetoad.com\/publication\/?i=828400&amp;article_id=4832377\" target=\"_blank\" rel=\"noreferrer noopener\">2024 Outlook from Clarion<\/a>, recently shared on WealthManagement.com, identified several key structural themes that highlight Capital Square\u2019s competitive advantage.<\/p>\n\n<h3  class=\"appear-on-scroll wp-block-heading\" ><span class=\"text\">Three Themes of Real Estate Investment Demand in 2024<\/span><\/h3>\n\n<ol start=\"1\"  class=\"appear-on-scroll wp-block-list\" >\n<li><strong>Demographics<\/strong><\/li>\n<\/ol>\n\n<p class=\"appear-on-scroll\">The U.S. is expected to grow to 400 million people by 2060 with the strongest growth anticipated in the Sun Belt, Mountain region and urban fringe\/suburbs.<\/p>\n\n<p class=\"appear-on-scroll\">Capital Square focuses on submarkets showing the most favorable demographic fundamentals driven by several factors, most notably cost of living and quality of life. These structural trends are integral to Capital Square\u2019s market selection and steer our living investment thesis.<\/p>\n\n<ol start=\"2\"  class=\"appear-on-scroll wp-block-list\" >\n<li><strong>Housing Shortage and Affordability<\/strong><\/li>\n<\/ol>\n\n<p class=\"appear-on-scroll\">Over the past decade, the U.S. median home price has risen by 84%, attributable to a decade-plus of underbuilding following the Global Financial Crisis of 2007-2008. Over the next five years, the housing shortage is estimated to be 3-4 million homes, the majority of which are single-family homes.<a id=\"_ednref1\" href=\"#_edn1\">[1]<\/a><\/p>\n\n<p class=\"appear-on-scroll\">Capital Square addresses this gap through its living investments, most notably its recent investments in <a href=\"https:\/\/capitalsq.com\/expertise\/bfr-capitalizing-on-expanding-pockets-of-demand\/\">build for rent (BFR)<\/a>. Capital Square is building and acquiring single-family rental communities as homeownership becomes out of reach for countless households.<\/p>\n\n<ol start=\"3\"  class=\"appear-on-scroll wp-block-list\" >\n<li><strong>Resiliency<\/strong><\/li>\n<\/ol>\n\n<p class=\"appear-on-scroll\">Market and asset-level resiliency, impacted significantly by operational and environmental factors, is critical to providing consistent and repeatable cash flows through cycles to investors.<\/p>\n\n<p class=\"appear-on-scroll\">Capital Square\u2019s <a href=\"https:\/\/capitalsq.com\/development\/#case-studies\">opportunity zone developments<\/a> are premier, Class A mixed-use builds with environmentally conscious features that are expected to outperform in the long-term. In particular, the Scott\u2019s Addition amenity-rich neighborhood offers long-term growth potential for new developments in this burgeoning live\/work\/play community.<\/p>\n\n<h3  class=\"appear-on-scroll wp-block-heading\" ><span class=\"text\">Additional Considerations<\/span><\/h3>\n\n<p class=\"appear-on-scroll\">While less pertinent to investments in multifamily and build-for-rent, <strong>innovation<\/strong> and <strong>shifting globalization<\/strong> are also key to forming a diversified, durable real estate portfolio. Capital Square is investing in markets such as <a href=\"https:\/\/capitalsq.com\/expertise\/knoxville-an-emerging-city-on-the-rise\/\">Knoxville<\/a> and Chattanooga, where workforces are largely driven by tech and healthcare industries, and Glendale, where workforces are bolstered by over 20 million square feet of logistics space thriving on ecommerce growth and the U.S. government\u2019s CHIPS act, sparking Taiwan Semiconductor Manufacturing Company\u2019s $65 billion investment in semiconductor facilities in Arizona.<a href=\"#_edn2\" id=\"_ednref2\">[2]<\/a> <a href=\"#_edn3\" id=\"_ednref3\">[3]<\/a> <a href=\"#_edn4\" id=\"_ednref4\">[4]<\/a><\/p>\n\n<p class=\"appear-on-scroll\">In summary, Capital Square\u2019s investment thesis seeks to capitalize on the structural themes driving long-term real estate investment demand, as identified by Clarion Partners.<\/p>\n\n<p class=\"appear-on-scroll\">Ready to learn more? <a href=\"https:\/\/capitalsq.com\/contact\/\">Contact our team<\/a> today.<\/p>\n\n<hr  class=\"appear-on-scroll wp-block-separator has-alpha-channel-opacity\" \/>\n\n<p class=\"appear-on-scroll\"><sup>Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA\/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning\/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against losses. Private placements are speculative.<\/sup><\/p>\n\n<p class=\"appear-on-scroll\"><a href=\"#_ednref1\" id=\"_edn1\">[1]<\/a> Clarion and CBRE, 2024.<\/p>\n\n<p class=\"appear-on-scroll\"><a href=\"#_ednref2\" id=\"_edn2\">[2]<\/a> Bureau of Labor Statistics, 2024.<\/p>\n\n<p class=\"appear-on-scroll\"><a href=\"#_ednref3\" id=\"_edn3\">[3]<\/a> Phoenix Business Journal, 2022.<\/p>\n\n<p class=\"appear-on-scroll\"><a href=\"#_ednref4\" id=\"_edn4\">[4]<\/a> TSMC press release, 2024.<\/p>","protected":false},"excerpt":{"rendered":"<p>In the present market, real estate investment demand is an evolving story \u2013 a story we\u2019re living and a story we\u2019re dissecting in real time. Capital Square exists in a &hellip;<\/p>\n","protected":false},"author":[40],"featured_media":181374,"template":"","meta":{"featured_image_background_position":"","promoted":false,"priority":"","footnotes":""},"categories":[25],"tags":[37],"content-type":[39],"investment":[],"class_list":["post-181369","expertise","type-expertise","status-publish","has-post-thumbnail","hentry","category-investment-insights","tag-investor-education","content-type-article","author-capital-square-team"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Current Drivers of Real Estate Investment Demand - Capital Square - Raising capital, buildings and expectations<\/title>\n<meta name=\"description\" content=\"Capital Square\u2019s investment thesis seeks to capitalize on the structural themes driving long-term real estate investment demand.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/capitalsq.com\/expertise\/present-drivers-of-real-estate-investment-demand\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Current Drivers of Real Estate Investment Demand - 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