Investor strategy

Real estate portfolio success hinges on:

  • owner’s strategy
    • investment category
    • investment strategy
    • investment type
      • core investment
      • value-added investment
      • opportunistic investment
  • timing
    • market cycle of the moment, expectations – the real estate clock, in other words
    • length of ownership period
  • real estate characteristics
    • open spectrum, undesirable types of use
    • exploitation of special circumstances
      • low-quality properties in need of good management
        • vacant properties
        • auction properties
      • point in building life cycle
      • use-change property
        • from rental apartments into owner-occupied apartments / condos
        • change from office to residential space
        • change from hotels to other uses
    • conversion to multi-usage
    • demand analysis
    • benchmarking
    • performance index
  • location
    • city / suburban
    • preferred location
      • A locations
      • B locations
    • diversified locations
      • regional
      • national
  • specification
    • investment per property
      • minimum
      • maximum
    • minimum area
    • minimum yield
  • ratio of equity to debt
    • equity capital
      • high (investment-driven)
      • low
    • debt financing
      • high (leverage-driven)
      • low
    • long or short-term financing
    • return on capital
    • depreciation level and amount
    • interest-rate and currency hedges
    • private equity
    • multiple banks or other lenders
  • use strategy
    • tenant target group/quality
    • occupancy rate
    • tenancy profile – current, potential
    • rental agreement optimization
    • rental risks
  • management strategy
    • self-managed or outsourced facility management
    • self-managed or outsourced to property management company
  • period of ownership
    • limited or unlimited
    • exit strategies
  • fiscal strategy
    • legal entity
    • property
    • property tax, period of ownership
  • exit strategies

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