The Pricing of Non-Core Real Estate Ventures

摘要

For those familiar with institutional investment in commercial real estate, it comes as no surprise that the last five or so years have borne witness to a significant shift in focus—from so-called "core" properties to "non-core" properties. The former are generally characterized by low-leverage investments in fully leased apartment, industrial, office, and retail properties that are located in large metropolitan areas, whereas the latter essentially represent everything else. A recent survey of institutional investors indicates that more than two-thirds of their private domestic real estate equity capital for 2007 will be in non-core investments, leaving less than a third allocated to core investments.