Barings’ John Lippmann and CBRE Investment Management’s Elisabeth Troni share strategies for navigating risk and unlocking value in core real estate investment portfolios. From alternatives to secondary markets, top funds are adapting to outperform in a shifting landscape.
Key takeaways on evolving investor strategies:
· Alternatives are reshaping core portfolios, with newer funds allocating heavily to data centers, seniors housing and single-family residential.
· Operational expertise is a performance driver, particularly in shorter-lease-term asset types that require service-oriented models.
· Smaller markets offer strategic upside, with investor focus shifting to high-growth, affordable areas like El Paso and West Palm Beach amid demographic and affordability trends.
· Flexible fund structures allow managers to hold through market cycles and avoid forced sales in illiquid environments.
· Benchmarking tools enhance insights into income vs. appreciation return potential and help investors measure returns.
