blurred motion of airport moving walkway, blue toned blurred motion of airport moving walkway, blue toned

Broader Horizons - the Attraction of Alternative Real Estate

Greg Mansell • 11/07/2019

Investors - keen to increase yields and deliver portfolio returns - are focusing on a broader range of property investment types. 

Investing in the UK property market beyond the three main sectors - offices, retail and industrial – means diversifying into hotels, student living, residential, healthcare, data centres, self-storage and car parks. 

In 2018 28% (£17bn) of all commercial real estate investment in the UK was in alternatives - the highest level on record. 

Over the last decade (2009-2018) we’ve seen the attractiveness of alternatives grow to deliver impressive performance.
View the key highlights:

 

Drivers to Alternatives

Institutional investors are seeking sustained income streams. The combination of decreasing lease lengths and fierce competition for prime assets in mainstream sectors has made low-yielding alternatives look competitive, particularly over the long term.

Alternatives Investment Strategy 

Alternative property types are distinct specialist sectors that have varied demand drivers and investment traits, so investors should avoid a combined investment allocation.

Portfolio acquisitions are the most common way to access the best assets and strongest covenants. Investors are acquiring, or partnering with, dominant operators to quickly gain specialist knowledge and economies of scale. 

"Investors are seeking better yields and are increasingly prepared to consider a wider range of property types, different financing options and adjusted risk returns to achieve their goals.” David Haynes, UK Capital Markets.

More Insights

eye in blue duotone
Insights • Forecast / Outlook

Outlook 2020

Addresses key challenges and opportunities that will define the future of European commercial real estate in 2020 and beyond.

Andrew Phipps • 03/12/2019
dark haired woman sitting on desk talking to coworkers
Insights • Office

Coworking UK Report

In 2019 we can look back on 2 generally positive years for the UK office market, despite the political headwinds. Our UK Coworking 2019 report explores how the flexible workspace trend has evolved since the end of 2017 and looks to the future for what we can expect from a sector that has continued to dominate headlines.
Christopher Dunn • 09/09/2019

RELATED SERVICES

Offices - Capital Markets

Our market leading national Office Capital Markets team creates strategies which empower our clients to reach their goals whether buying, selling or developing office properties.

Learn More
Central London Offices - Capital Markets

Our Central London Capital Markets team provides a range of investment advisory services to an array of domestic and overseas clients engaged in buying, selling, investing in, financing, or building real estate in London.

Learn More
Industrial & Logistics - Capital Markets

Whether you are looking to buy, sell or develop industrial property, our Industrial and Logistics Capital Markets team provides expertise and insight that will help maximise the value of your portfolio or individual assets.

Learn More
Retail - Capital Markets

Our leading Retail Capital Markets team provides advice, execution and investment services to a vast network of national and international clients involved in buying, selling, financing or developing retail real estate.

Learn More
Residential - Capital Markets
Our national Residential Investment & BTR team leads the UK market in providing expert advice to investors and developers looking for new residential investment opportunities, or who wish to acquire, develop or dispose of rented portfolios. 
 
Learn More
Alternatives
Investing in the UK property market beyond the three main sectors: offices, retail and industrial – means diversifying into hotels, student living, residential, healthcare, data centres, self-storage and car parks.
Learn More
EMEA Structured Finance

In an increasingly competitive and complex environment for real estate investment, financing structures and deal terms that maximise value are more important than ever. With deep domain expertise in financing and a strong track record of completing transactions at exceptional terms, Cushman & Wakefield can help you find the right solution.

Learn More
EMEA Cross-Border Capital Markets

In 2018, global real estate investment volumes hit record highs of US$1.75 trillion. Cross-border investment now continues to flourish, and EMEA remains a top target for investment.

Learn More
Greg Mansell

Research

Greg Mansell

Head of UK Research & Insight
London, United Kingdom


+44 203 296 4684

Greg.Mansell@cushwake.com

Download VCard

WANT TO KNOW MORE?

If you would like to find out more about our specific expertise, or discover how we could work with your company, please contact a member of our team – we’d be delighted to hear from you.