The checklist for identifying “institutional-quality” real estate once centered on large buildings in major gateway markets, recognizable tenants and a clear pool of potential buyers to provide exit liquidity. Think One Vanderbilt in New York City or Willis Tower in Chicago.
As capital continues to flow into alternative property sectors characterized by smaller transaction sizes and greater operational intensity, the traditional definition of institutional real estate is continuing to evolve. “The definition has certainly changed. It’s really about the quality of the investment ecosystem surrounding the real estate,” says Mike Gordon, global CIO at Harrison Street Asset Management.
Today’s checklist addresses questions such as: Do you have durable underlying demand? Do you have enough data to underwrite the investment with conviction? Do you have the right operating expertise? Can you create scale and liquidity over time? And are the governance, reporting a
