Five principles: The role of strategy in getting investments to take off
At the start of my career in 1985, real estate was still somewhat of a regional business where capital was, in large part, guided by gut, instinct and familiarity. Things changed rapidly as banks followed the path of the insurers and solidified national lending platforms. The entry by tax-exempt investors into the real estate equity and debt markets was accompanied by the acceptance and elevation of the real estate academic within the industry.
In the mid-1980s there were only a handful of credible data vendors, but this market grew and now offers broad and global data sets from multiple sources. Yet, despite three decades of evolution, there is little consensus for the role of strategy in the asset class. Until the financial crisis, it appeared quantitative finance was becoming the predominant context for strategy with the apex, the short-lived market for real estate derivatives, overlapping the market top. Indeed, quantitative finance and real estate research — with only