CBRE Investment Management’s Co-CEO and CIO, Adam Gallistel, offers insights on where real assets investors can find strong return opportunities in today’s market. He discusses shifting strategies amid higher interest rates, alternative asset classes, the role of operational expertise and why Europe offers attractive relative value right now.
Prioritize operations and asset selection: Gallistel emphasizes that “hope is not a strategy”—returns will come from income growth and strong asset selection rather than relying on market-driven cap rate compression.
Diversification matters: Niche sectors like data centers and student housing offer non-correlated income streams and resilience compared to traditional “big four” asset classes.
Europe looks compelling: Europe offers relative value and growth potential, making it an attractive complement to a U.S. property portfolio.
Infrastructure and power are critical: CBRE IM is investing in solutions like battery storage and renewable energy to capitalize on growing demand for power in the digital economy.
Overlooked markets show promise: Gallistel sees opportunities in U.S. Midwest real estate markets as supply dynamics shift.