(Featuring Valeria Falcone, Managing Director, Portfolio Manager, Real Estate Country Head-Italy, Barings Real Estate, and Joe Gorin, Managing Director, Head of Portfolio Management and Value-Add Investing for the US Real Estate Equity, Barings Real Estate)
The pandemic altered assumptions about the real estate, including the shift in demand, location, and even the environment itself. Yet, at the center of the storm are the value-add investors who drive opportunity and risk when it comes to change.
https://www.afire.org/podcast/afirepodcast30-value-add
How is the value-add landscape changing because of the COVID-19 pandemic? It is evident that changes have been felt across product types and sectors like multifamily, industrial, office, retail, and e-commerce. In addition, the trends within these sectors accelerated quickly, proposing a new challenge for investors—meeting the demands that occupy the competitive industry to acquire value-add deals.
Despite the growing disparity between functional office spaces and obsolete office spaces, a disciplined approach to value-add investing is necessary to determine rent values for assets given the increase of population growth and migration patterns.
In this episode of the AFIRE Podcast, Joe Gorin and Valeria Falcone of Barings Real Estate discuss how the thematic approach in real estate is changing and what structural impacts it's having beyond the pandemic.