Excitement is building up to the kickoff of MIPIM 2012. Public sector leaders and private sector investors will converge on Cannes, France, next week to take the industry’s temperature, to get a glimpse into the near future, to ask questions (and hopefully find some answers), and to make valuable connections. Students in the real estate MBA program at the Wisconsin School of Business will be there as well.
This marks the seventh year that the school has brought a delegation to attend MIPIM. The trip is one dimension of the school’s commitment to global awareness. MIPIM is an amazing opportunity for our students to literally get outside the world of US real estate and see how property markets function in Europe. The students will be looking closely at how the practice of real estate differs due to cultural factors, space limitations, and zoning constraints (i.e., parking ratios, tenant mix of retail, density, etc.). It is also a chance to interact with leaders in real estate and related industries to determine trends, perceptions, operating strategies, and best practices.
As part of their preparation for the trip, students have been doing some research into the hot topics and big questions that are on everyone’s minds. First and foremost is the Greek debt crisis: what effect does it have on the Eurozone and the overall stability of Europe? Other public policy related questions include China and fears of a bubble in its property markets: have recent government measures been effective and does interference itself have consequences? And, Solvency II and other ECB banking regulations: will they have an effect on real estate lending?
MIPIM is also a great opportunity for students to get a feel for broad real estate trends. Recent years were marked by the flight of real estate capital towards core markets. This bout of risk aversion has greatly lowered yields in these safe markets and the temptation for investors to once again increase their exposure to riskier market is therefore growing. Which markets will benefit the most from investors’ thirst for yield? MIPIM attracts hundreds of opportunistic real estate investors and, under the same roof, representatives from many of the markets trying to woo real estate capital. It is the ideal environment to identify incipient global trends.
Describing these new trends is the number one goal of the wrap-up keynote address at MIPIM by François Ortalo-Magné, Albert O. Nicholas Dean of the Wisconsin School of Business. Students will be assisting Dean Ortalo-Magné to survey participants at the conference. The wrap-up keynote will take place on the last day of MIPIM at 10.30 on March 9, 2012. It’s one of the best ways to cap off your time at MIPIM!
About the Wisconsin School of Business
The Wisconsin School of Business is a global leader in real estate education and research. One of the oldest academic real estate programs in the U.S., the James A. Graaskamp Center for Real Estate offers top-ranked degree programs which uniquely challenge the next generation of leaders of the industry.
Image: Harald Groven