Prentiss Feagles, partner at Hogan Lovells and the Nareit 2024 Industry Achievement Award winner, sat down for a video interview during Nareit’s REITworld: 2024 Annual Conference in Las Vegas, Nevada on Nov. 18-21.
Feagles discussed his career and the evolving REIT industry, reflecting on his nearly 30 years of experience. He highlighted the significant transformation of the industry since the 1990s, from a focus on office buildings and garden apartments to the rise of sectors like data centers. He emphasized the dynamic nature of the REIT industry, which has kept him engaged. As a tax lawyer, the industry's constant changes have made it particularly interesting, he added.
Regarding the current state of the REIT and publicly listed real estate sectors, Feagles expressed cautious optimism. He noted that interest rates are easing, leading to expectations of a soft economic landing, which is beneficial for the industry overall. However, he emphasized that sector performance varies widely, with data centers and high-end retail performing well, while commercial office buildings face challenges as market values reset.
Looking to 2025, Feagles anticipates an uptick in M&A activity. He also expects more IPOs toward the end of 2025, as public market valuations become more competitive with the private market, which had previously dominated. He concluded by noting that, as in the past, periods of industry activity will lead to a "sorting out" of winners and losers, creating a busy and dynamic environment in the coming year.