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dam Gallistel, Co‑CEO and CIO of CBRE Investment Management, spoke at an ION Influencers Fireside Chat about the future of global real‑estate investing. CBRE IM, a $150 billion manager inside CBRE, oversees real‑estate and infrastructure assets in both public and private markets worldwide. Gallistel, who joined in 2024 after a decade at Singapore’s sovereign wealth fund GIC, shared his view on opportunities, risks, and how to shape portfolios amid a changing landscape.

    **Key Themes**

    1. **Market Outlook**

     • Real‑estate has lagged tech and growth stocks over the past three years, yet infrastructure has performed better.

     • Gallistel remains upbeat for the next cycle, citing global valuation resets, attractive discounts to replacement cost, and a slowing supply pipeline that should boost pricing power.

    2. **Europe vs. the U.S.**

     • Europe offers deeper value: 25 % peak‑to‑trough decline versus 20 % in the U.S.; less capital chasing deals; spreads to risk‑free rates closer to historical norms; and stronger occupier‑market growth supported by limited new supply.

     • The U.S. remains the most liquid, least regulated market with execution advantages, but its valuation decline is smaller.

    3. **U.S. Value Pockets**

     • Essential retail/strip malls stand out: cap rates align with financing, supply‑demand dynamics are the best in two decades, and post‑COVID rents have reset, giving landlords pricing power.

    4. **Building Global Teams**

     • “Boots on the ground” are vital in Europe because of fragmented markets, languages, and regulations; CBRE IM maintains multiple offices across the continent.

     • Hiring focuses on forecasting skills (statistical thinking, adaptability), deal‑making ability (persistence, grit, empathy), and a blend of numerical rigor and people skills.

    5. **Signal vs. Noise**

     • Focus on long‑term fundamentals rather than daily macro headlines.

     • Teams assume fixed‑income markets correctly gauge risk‑free rates and then add risk premia.

     • Core priorities: rule of law, economic stability, and conditions for long‑term growth.

    6. **Data & Insights**

     • Data collection is improving but has yet to yield many counterintuitive insights.

     • The goal is systematic gathering that uncovers unexpected opportunities beyond traditional analysis.

    7. **Secondary Markets**

     • LP secondaries in real‑estate are underdeveloped compared to private equity; GP secondaries are growing due to capital‑raising challenges.

     • They provide liquidity for LPs and sustainability for managers but require careful governance to protect investors during exits.

    8. **Democratization**

     • Retail capital is a major growth frontier, helped by regulatory changes (e.g., 401(k) access in the U.S.).

     • Institutional allocations to real assets are near targets, but retail penetration remains low.

     • Retail inflows are procyclical, peaking at market highs; CBRE IM balances opportunity with fiduciary responsibility.

    9. **Future of Asset Management**

     • Middle‑market consolidation is accelerating; larger firms are gaining share.

     • Investors demand both capital‑allocation expertise and operational excellence.

     • The industry is moving toward scale, integration, and deeper property‑level capabilities.

    10. **CIO’s Evolving Role**

     • Gallistel sees his job as building and empowering a strong bench of talent, ultimately making himself redundant by developing the next generation of leaders.

    **Takeaways**

    - Real‑estate is emerging from a tough period, offering attractive opportunities through valuation resets and supply constraints.

    - Europe currently delivers stronger relative value than the U.S., though execution is more complex.

    - In the U.S., essential retail remains a compelling sector.

    - Data, democratization, and consolidation will shape the industry over the next decade.

    - Successful leadership balances long‑term vision, adaptability, and people‑centric deal‑making.

    **Key timestamps**

    00:07 – Intro

    00:39 – CBRE IM overview

    01:42 – Current state of real‑estate investments

    03:19 – Market positioning strategies

    07:11 – US vs. Europe regulatory comparison

    08:41 – Value in the US market

    09:53 – Building a diverse team for Europe

    12:27 – Key skills for professionals

    13:08 – Distinguishing noise from trends

    15:05 – Data insights

    16:31 – Secondary market exploration

    17:25 – GP secondary challenges

    18:56 – Shift toward private wealth

    20:20 – Retail capital challenges

    21:55 – Future of asset management

    23:02 – CIO’s evolving role