The glare of scrutiny: Steps to improve real estate portfolio performance
A central benefit of the real estate asset class is the potential to generate alpha from effective portfolio and asset management. But navigating through the current environment poses investment challenges. Strong recent performance has contributed to a surge of capital toward the asset class. The growing scale and importance of real estate as an asset class has been accompanied by a desire for greater scrutiny of the actual exposure, from investors, regulators and managers.
This scrutiny is part of broader moves for greater transparency, as well as increasing concerns over the pricing of real estate across most markets. It is in this context that “benchmarking” is coming to represent a powerful tool in helping provide this scrutiny and, as such, a central activity to help manage risk and return within the investment process. Moreover, real estate benchmarking can function as a crucial nexus between the shifting winds of a global marketplace and the on-the-ground local de