Non-Core Real Estate Offers an Attractive Investment Opportunity
Many institutional investors access real estate through private investments but face the challenge of being underweight in non-traditional or non-core segments. As commercial real estate is experiencing a significant shift towards these areas, the listed real estate market offers investors the opportunity to achieve immediate access to non-core sectors.
The Duff & Phelps' Non-Core Real Estate Opportunities Strategy is a bespoke allocation that actively invests in non-core real estate companies and is designed to complement a private allocation.
Publicly listed real estate companies, as innovators in real estate investment, have consistently been pioneers on developing non-core commercial sectors, showcasing a forward-thinking approach. This expansion beyond conventional property types includes ventures into data centers, healthcare, and logistics. Such diversification is driven by the recognition of emerging trends and growing demands in the commercial real estate landscape.
For instance, the increasing reliance on technology, specifically artificial intelligence, has elevated the importance of data centers, while the aging population has amplified the need for senior healthcare facilities.
Non-Core Real Estate Universe Offers Breadth and Depth to Custom Tailor a Solution to Meet Client Needs
Dedicated investments in non-core listed real estate help achieve a balanced and dynamic investment allocation which is aligned with the evolving landscape of commercial real estate and the excess growth offered across these property types. The emerging, non-core property sectors offer diversification benefits, customized allocation to complete a real estate allocation, and immediate liquidity to buy and sell in the public markets.
Advantages of Listed Non-Core Real Estate
Potentially Higher Returns
Increased potential of total and risk-adjusted returns by leveraging the magnitude of non-core property sectors
Fully Customizable Portfolios
Bespoke portfolio construction addresses client specific needs and objectives
Liquidity
Listed real estate offers immediate access and liquidity to non-core markets relative to the private market
Diversification
Exposure to generally underrepresented, higher growth property sectors provides diversification for client real estate portfolios