Sizing up McKinsey's advice for CRE investment managers with the benefit of hindsight
1. Create and implement a data plan
Gather property-level and market-level data with a focus on alternative data sources for novel investment insights.
2. Be a one-stop shop
Develop expertise in core, core-plus, value-add, and opportunistic strategies to attract a wider pool of investors.
3. Build anchor partnerships
Identify and nurture relationships with large institutional investors who can act as cornerstone partners for your funds.
4. Enter new geographies
Replicate successful domestic strategies in international markets by leveraging local partnerships and market expertise.
5. Adopt thematic investing
Focus on transformative trends, such as demographic shifts and the digital economy. Prioritize assets like data centers, senior housing, and e-commerce-driven industrial properties to align with emerging demand.
6. Vertically integrate where appropriate
Develop in-house capabilities for property sourcing, asset management, and operations. Use this vertical integration to differentiate your offering, generate alpha, and reduce reliance on external partners.
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Our chirps from the cheap seats...
1. Yup, everyone likes data and pretty charts.
2. This one didn't age well for most players.
3. Obvious but good point.
4. Going into unknown markets can be fatal for smaller players.
5. Themes are usually more obvious in hindsight.
6. Everyone wants to be an operator but very few are at scale.
Read the full report here.
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