[Asia Economy Reporter Minji Lee] Maston Investment Management presented five trends in the global commercial real estate market this year and announced investment strategies to respond to them on the 20th.
According to the report "2022 Global Investment Environment: Beyond the multi-edge player," released by Maston Investment Management's research division R&S, the five trends in global commercial real estate this year are ▲ interest rate hikes ▲ ESG ▲ Build to Core (acquiring buildings or land in prime locations and developing them into core assets) ▲ hybrid ▲ speed.
Regarding interest rate hikes, the report advised investing in multi-tenant assets or assets rented at low costs compared to market prices. For ESG, it explained that investments should be made in renewable energy or that the proportion of social housing should be considered when investing in multifamily (luxury rental apartments).
For Build to Core, it mentioned that to mitigate development risks, overseas joint ventures (JV) or constructive partnerships should be considered. Regarding hybrid, attention should be paid to work environments where various services can be enjoyed in one space. In terms of speed, it emphasized the importance of rapid investment through local presence or M&A.
Jihyojin, team leader of the Global Research Team, said, "This year, it is more important to make investment decisions based on fundamental analysis such as industry and employment rather than short-term expectations for valuation," adding, "In particular, it is necessary to closely examine the scale of facility investments in line with the ESG and hybrid trends."
Meanwhile, Maston Investment Management's R&S Global Research Team plans to continue publishing in-depth reports for investors interested in the overseas commercial real estate market.
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