Real estate companies have faced falling asset values, lower rents and banks’ nervousness to lend. They have many challenges to face, yet there are opportunities for those able to articulate strategies based on realistic views of the future.
Governance & risk management
The creation of ever larger real estate businesses has increased the risk of governance and risk management breakdowns. Underlying this is the danger of severe reputational damage.
Growth
Real estate’s nature as a tangible asset class may give it an advantage at a time when investors are shy of complexity. Institutional investors remain committed to the asset class and to those real estate vehicles with convincing strategies.
Human capital
With profitability under pressure, thought needs to be given to how performance can be appropriately measured and retaining the best people may entail creating a new set of benchmarks.
Market reporting
Investors are becoming more demanding and want greater consistency and transparency in valuation practices. Do you have access to the resources and expertise to provide this?
Regulation and compliance
Real estate is facing increased regulation. Firms need to understand their compliance requirements.
