Viewpoint | Intelligent Investment
Conformist, Contrarian or Vintage? Selecting Real Estate Investment Strategies for 2023
November 10, 2022
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Strengthening macroeconomic headwinds caused by rising inflation, higher interest rates and geopolitical conflict have caused Asia Pacific investment activity to enter a holding pattern after a strong start to the year.
As investors prepare to navigate what are expected to be increasingly choppy waters, at least in the short-term, CBRE has identified a range of strategies for investors to consider based on their investment approach and risk appetite. These include:
Conformist Investment Strategies, featuring the purchase of high-quality prime office properties, driven by occupier flight to quality and a lack of supply; logistics assets, which continue to report strong rental growth and low vacancy; and multifamily properties in major Japanese cities, which offer attractive cash-on-cash yield.
Contrarian Investment Strategies, involving the early disposal of logistics and multifamily investments to lock-in profits; the purchase of hotels, which are poised to benefit from a gradual recovery in international tourism; and the acquisition of retail properties, rents for which have largely bottomed-out.
Vintage Investment Strategies, including acquiring assets on the public market, such as REITs trading below their NAV and other listed vehicles that are undervalued; debt investment and distressed opportunities, which are available in selected markets; and blue-chip assets, for which the window of opportunity to capture discounts is minimal.
This Viewpoint explores each of these strategies in detail by identifying what CBRE believes to be the most attractive opportunities in individual sectors and markets together with the most viable entry routes.
As investors prepare to navigate what are expected to be increasingly choppy waters, at least in the short-term, CBRE has identified a range of strategies for investors to consider based on their investment approach and risk appetite. These include:
Conformist Investment Strategies, featuring the purchase of high-quality prime office properties, driven by occupier flight to quality and a lack of supply; logistics assets, which continue to report strong rental growth and low vacancy; and multifamily properties in major Japanese cities, which offer attractive cash-on-cash yield.
Contrarian Investment Strategies, involving the early disposal of logistics and multifamily investments to lock-in profits; the purchase of hotels, which are poised to benefit from a gradual recovery in international tourism; and the acquisition of retail properties, rents for which have largely bottomed-out.
Vintage Investment Strategies, including acquiring assets on the public market, such as REITs trading below their NAV and other listed vehicles that are undervalued; debt investment and distressed opportunities, which are available in selected markets; and blue-chip assets, for which the window of opportunity to capture discounts is minimal.
This Viewpoint explores each of these strategies in detail by identifying what CBRE believes to be the most attractive opportunities in individual sectors and markets together with the most viable entry routes.
