Forecasting

Forecasts of the real estate markets are combined with our estimations of market capitalisation and market risk to produce strategies that are developed and implemented through a careful interactive, multi-level process: 

• “Top-down” strategies for funds and clients are developed on a global, regional and local basis. We follow a standard process to establish bespoke strategies for portfolios and clients. This begins with a clear understanding of the objectives and constraints of investors to develop a strategic allocation sensitive to their unique situation.  A framework incorporating short, medium and long-term economic and real estate market characteristics and trends is used to provide both tactical and strategic recommendations. It also takes into account local real estate market regulations, taxes and structure.
  
• “Bottom-up” research helps analyse individual properties proposed for acquisition or disposition. Local market researchers evaluate supply and demand fundamentals; examine competitive properties, and forecast rental growth, vacancy rates and absorption by property type. All these elements are taken into account in evaluating property pricing.
• Research is also used in the evaluation of existing portfolios and an annual analysis is completed for each property held. These property-level studies examine the competitive position of the asset in its market and assess its future potential. They are fundamental to hold/sell decisions.

The investment management global research group also produces a number of publications which are intended to keep clients and colleagues informed of the latest trends and expectations.  These include Global Vision, US View, UK View, European View and Asia Pacific View and a range of research papers on specific topics such as Global Real Estate Market Risk, the Case for Real Estate, issues specific to each property type and other topical papers.