Global core-plus real estate is increasingly attractive for long-term investors, particularly at this stage of the market cycle. The core argument is that global diversification helps insulate portfolios from local economic and sector-specific downturns, while allowing investors to pursue higher-conviction opportunities within individual markets, says Gordon Black, executive vice president and portfolio manager of Heitman Global Real Estate Partners II, in an interview with IREI.
Black notes that pricing corrections across many countries — driven by higher interest rates —have created a more favorable entry point for new investment compared to recent years. As a result, expected long-term returns have improved, while overall risk levels appear broadly similar to those seen before rate hikes. He outlines how global core-plus fits into institutional portfolio construction by offering both income durability through diversification and upside optionality through access to str
