If one's portfolio is overweighted in a specific asset class two dominant strategies are needed:
1. Cost value strategy - i.e. buying more of said asset at discounted prices. Of course, time-cost is the bigger concern here. Consequently, the question that begs, per potential appreciation in property values is "is distributed work" a passing phenomena or are we at the center or a truly 4th transformational change with economic production: farm to factory to office and now home or anywhere? Base on our analytics we believe that by 2030 only 20% of workers from large enterprises will be working in large corporate building in cities. Furthermore, the % of fully distributed and decentralized startup and scaleup are adopting- at increasing levels a 100% distributed model. Accordingly, developers and owners adept at accomadating shift in use .i.e dual live/work etc models will do better.
2. The REIT Hedge:
Alternatively, capital markets need a REIT hedge instrument to mitigate against adverse price movements. Having done 15 years of site selection and corporate expansion advisory work for over 60 F 500 firms globally, we realize that direct players in the commercial property markets and CFOs who lease them need a tradable product at captures the price movement (+-) in the performance of the city itself. So while commercial real-estate + REIT prices go up or down, many other assets (public goods/policy design) directly affect the values of livable, workable (economic), sustainable (climate assets ) and governable (financial) assets of the city. Imagine all the features discussed about Detroit's performance - captured through a decentralized priced algorithm on its performance, and real estate operators and investors can purchase that instrument, generate yields (capital gains) or hedge to offset losses, what a joy it will be? We're working on it: www.zagada.com - Cheers -Phil
If one's portfolio is overweighted in a specific asset class two dominant strategies are needed:
1. Cost value strategy - i.e. buying more of said asset at discounted prices. Of course, time-cost is the bigger concern here. Consequently, the question that begs, per potential appreciation in property values is "is distributed work" a passing phenomena or are we at the center or a truly 4th transformational change with economic production: farm to factory to office and now home or anywhere? Base on our analytics we believe that by 2030 only 20% of workers from large enterprises will be working in large corporate building in cities. Furthermore, the % of fully distributed and decentralized startup and scaleup are adopting- at increasing levels a 100% distributed model. Accordingly, developers and owners adept at accomadating shift in use .i.e dual live/work etc models will do better.
2. The REIT Hedge:
Alternatively, capital markets need a REIT hedge instrument to mitigate against adverse price movements. Having done 15 years of site selection and corporate expansion advisory work for over 60 F 500 firms globally, we realize that direct players in the commercial property markets and CFOs who lease them need a tradable product at captures the price movement (+-) in the performance of the city itself. So while commercial real-estate + REIT prices go up or down, many other assets (public goods/policy design) directly affect the values of livable, workable (economic), sustainable (climate assets ) and governable (financial) assets of the city. Imagine all the features discussed about Detroit's performance - captured through a decentralized priced algorithm on its performance, and real estate operators and investors can purchase that instrument, generate yields (capital gains) or hedge to offset losses, what a joy it will be? We're working on it: www.zagada.com - Cheers -Phil
Strong optimistic take! And indeed that Draft vibe was unmatched.