The Bell Had Been Ringing; It’s only now that we can finally hear it
In this environment, global investors were asked to hold two opposing truths, with growth moderating and inflation remaining sticky. For me, it was remarkable to witness this turnaround firsthand. What started with confidence at the World Economic Forum in January had pivoted to concern by the Milken Institute Global Conference in May.
Hines has long believed that this cycle would be different. That valuations would reset not with a bang, but with a steady recalibration. That fundamentals would reassert themselves. And that real estate (especially private real estate) would emerge as one of the few places where long-term capital could find income, resilience, and strong relative value.
As the cycle progresses, we believe we will begin to shift to a building moment—an inflection point that many could miss.
David Steinbach
Global Chief Investment Officer
We have been watching the key themes of deglobalization, deleveraging, demographics, dispersion, data, and decarbonization. These are structural forces that we believe will shape the investment landscape for years to come. Practically, our key near-term conviction remains living, and how we tackle that space will vary by market. At the same time, we continue to lean in on retail and U.S. office credit. Our fast-follow strategies are industrial (which remains interesting on a selective basis) and office on the equity side (which we continue to monitor closely). Regarding data centers, we continue to focus on powered land aggregation globally.
We Can't Unring the Bell, but We Can Redefine the Echo
The lack of modern new supply is likely to be a significant market trend in the later years of this decade
Joshua Scoville
Senior Managing Director, Global Head of Research
Will there continue to be upward pressure on cap rates from persistent inflation and elevated interest rates? If we were to get into an extended period of rising cap rates, the historical experience suggests that real estate has plenty of potential to continue to perform, given a conceivable uplift in income growth. How real estate derives returns may differ from the last 40 years, but the oldest asset class in the world has historically thrived in many differing rate environments.
We remain in an evolving investment landscape that requires a patient, efficient, and methodical approach. In this environment, it’s especially important to avoid recency bias and keep a broader perspective because there are opportunities to be found in all markets. In fact, from our on-the-ground vantage point, we’ve been able to successfully execute a range of deals despite uncertain market conditions. Looking ahead to the second half of 2025 and beyond, I’m confident that our globally aligned platform, local execution capabilities, and strong capital position will power us through the current uncertainty and best position us for the road ahead.
2025 Key Investment Themes