- Is the move into Operational Real Estate a market adjustment or paradigm shift for real estate?
This is a shift that is here to stay, with traditional lease lengths falling and core markets showing uncertain returns Operational Markets are where managers and investors can mark out territory and use expertise to drive performance.
- What are some of the fundamental shifts we’re seeing in real estate investment and the consequences of these reworkings?
The separation of bricks and brains has been the corporate mantra for 30 years. This is starting to change. In the digital marketplace controlling the bricks can be what secures your distribution network. We will see operational investors pricing this dimension challenging the traditional real estate valuation fundamentals.
- Where are the hot spots for real estate investors prepared to take operational risk?
This is the flip side of the digital dimension. Brands are no longer the gatekeepers for access to consumers. Markets where digital platform is the primary route to the consumer will be the focus, so currently it’s Student and Self Storage with Hotels close behind. One thing to think about is, what happens when digital healthcare evolves to the point where triage and primary care is delivered digitally?
- What are the funding implications for more operationally focused real estate?
The JV structure where the operator and real estate have meaningful skin in the game will grow. With more real estate capital looking for operational exposure expect increased capital availability for innovation and roll out of concepts. The 20’s will not be a time to be a traditional conservative operator, there will be new kids on every block!
The fundamental that runs through every debate is the changing relationship between real estate and operational capital and expertise. The two are comingled like never before. New forums, like Adjacent Spaces, are required to grow these networks, spark innovation and identify partnerships.
David will be delivering the opening presentation to launch Adjacent Spaces “Operating Real Estate: Beyond the Hotel Room” at 10:00 on Tues 3rd March at The Pullman Hotel Berlin Schweizerhof. This session will deliver an overview of the adjacent spaces market opportunities, where they fit in with other asset classes, which are growing fastest by market, performance overview.
Adjacent Spaces will explore investing beyond the hotel room and is open to all registered delegates of IHIF.
As the hospitality sector continues to evolve and expand, this highly focussed event will gather alternative hospitality asset brands, investors, brokers, law firms, consultants, designers and architects to meet, talk, exchange ideas, share knowledge and shape the future of the industry.