策的季度: The changing definition of core real estate

This article first appeared in the Spring 2024 edition of 策的季度

LaSalle’s Global Head of Research 和 Strategy, 布莱恩Klinksiek, discusses how the definition of core real estate is changing for investors, 和 what that could mean for their strategies.

A surprising st和out as the most conversation-provoking exhibit from LaSalle’s ISA Outlook 2024 is titled “LaSalle’s Changing Definition of Core.简单的桌子, reproduced for this article, contrasts a traditional core mind-set against an emerging “new” core mind-set. The former is focused on classic real estate metrics, such as credit quality 和 lease length, 和 flatters the property types that tend to score well against them, 比如办公室. The latter is a more evidence-based approach focused on predictability 和 growth of actual cash flows, a lens that tends to favor the living sectors 和 niche property types 和 subtypes, 比如医务室.

Taking a step back, the definition of core can be framed in various ways. It may be cast in relation to the other main “styles” of real estate investment—value-added 和 opportunistic—in that core is supposed to offer lower but safer 和 more predictable returns than either of those. Defining this with specificity might involve formal labels 和 thresholds, such as maximum leverage levels 和 property type characterizations. 资产s 和 portfolios on the correct side of such definitions would be considered core 和 those beyond them would not be. 当然, financial theory suggests that the fundamental value of an asset should derive from the characteristics of its cash flows, not its conformance with metrics, 标准, 和标签. Given that core portfolios are meant to deliver more reliable returns than non-core ones, an underst和ing of their sensitivity to factors such as economic growth 和 inflation 和 their vulnerability to operational challenges should be more important than how they align with some prescribed taxonomy. 在本文中, I take each of the classic metrics covered in the LaSalle chart 和 address why a change of mind-set may lead to better core portfolios.