SPONSORED: PATRIZIA — The great real estate reset

The real market is undergoing a significant shift, which will require active asset management for investors to be successful, especially to reap value-added returns, according to a report by Christie Wright, managing director of fund management with PATRIZIA, which was published in the March issue of Institutional Real Estate Americas. “From a real estate perspective, the two main catalysts for change are the drive toward decarbonization and changing financial dynamics,” says Wright. “Real estate is being impacted by a double hit from the debt funding gap and the green funding gap. Borrowing costs have significantly increased, multiplying interest costs and depleting cash assets. Leveraged core simply no longer works.” To access a pdf of the Sponsored Section, click here.