Perhaps location is overrated. The increasing demand for operational real estate suggests that the company running an operating business is an increasingly important consideration, beyond where a property asset is, who the tenants are and what condition it is in.
Operational real estate is a broad category, with no hard and fast definition as to the scope and boundaries of the segment. But we can consider any operationally intensive real estate assets as qualifying. Demand is certainly on the rise.
Investors currently prefer property assets that require higher operational intensity, such as data centers or specialty residential, certainly when compared with traditional assets in sectors such as office and retail.
There’s a macroeconomic driver, says Uma Moriarity, senior investment strategist and global head of sustainability at CenterSquare Investment Management. In this new market cycle, interest rates are structurally resetting at higher levels than applied
