The next phase of alternative real estate investing is expected to be driven more by asset selection and execution than by broad sector exposure, according to a new paper by Mike Gordon, global CIO of real estate at Harrison Street Asset Management.
The firm said real estate outcomes are becoming increasingly divergent across sectors, markets, assets, operators and capital structures, even as the broader market recovery continues. Harrison Street said investors will need to focus more closely on entry basis, income growth, operational execution and downside protection rather than relying on improving market conditions or cap-rate compression.
The paper also emphasized the importance of operator quality and local market selection, noting that attractive sector-level fundamentals can mask significant differences at the asset and submarket levels. Harrison Street applies that approach across sectors including senior housing, student housing and self-storage.
The fi
