Brief Archives - Bluerock

Industrial Property Sector Overview

Bluerock — Tue, 28 May 2024 21:19:27 +0000

2 min read – Industrial buildings are critical in the nation’s storage and distribution of goods. There are approximately 19 billion square feet of industrial space of all types in the United States. Subtypes include bulk distribution, light industrial (including “last-mile” facilities), truck terminals, flex, cold storage, outdoor storage and manufacturing. We explore the unique characteristics of these structures including physical attributes, demand drivers, locations, and tenancy types.

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Overlooked Opportunities in the “Small Bay” Light Industrial Real Estate Subsector

Bluerock — Tue, 28 May 2024 21:18:55 +0000

2 min read – The industrial sector’s best-kept secret may be the light industrial, small-bay property subsector. Light industrial properties are distinguished by, in part, their smaller sizes compared to large, bulk distribution properties. These property types generally comprise 50,000 - 100,000 square feet.

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In Pursuit of High Income, Without Undue Risk?

Bluerock — Mon, 27 Nov 2023 16:52:11 +0000

Individual investors frequently seek high-yield strategies but aim to mitigate potential downside risks of high-yield investments such as defaults, drawdowns, and volatility. Investors may be somewhat relieved today as risk-free U.S. Treasury yields offer more meaningful yield than they have in over 15 years.

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Long-Term Real Estate Investors Don’t Need to Call the Bottom

Bluerock — Mon, 18 Sep 2023 16:34:19 +0000

1 min read – Institutional real estate, a long-coveted asset class, was first officially measured in the U.S in 1978 by the NCREIF Property Index (NPI). The NPI has an enviable 45+ year track record with a nearly 9% total annualized return, an average of nearly 7% annual income returns, 41 of 45 positive returning years, and lower volatility more akin to the investment grade bond market than to equity markets. These characteristics have long drawn interest from pension funds and endowments as a key component in a well-diversified portfolio.

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Strong Projected Growth Among Bluerock High Conviction Sectors

Bluerock — Mon, 21 Aug 2023 14:28:05 +0000

1 min read – For institutional real estate investors, sector allocation is critical. There was a minimum of 1,150 basis points in return difference from the highest and lowest performing sectors in the NCREIF Property Index in the last five years.1 Real estate net operating income (NOI) (or simply property revenue minus property expenses) is akin to earnings in the corporate world and ultimately drives values, thus identifying sectors with the highest potential for net operating income gains is critical to outperformance.

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Public REITs’ Predictive Power of Private Real Estate Values Might be Weaker Than You Think

Bluerock — Tue, 25 Jul 2023 15:28:26 +0000

3 min read – A widespread school of thought suggests that public REIT performance is a leading indicator of private real estate values. However, our analysis shows a very weak relationship between the two and fluctuations in private real estate values can be best explained by other factors.

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What’s the Best Method to Broadly Access Real Estate? Interval Funds Might Have Cracked the Code.

Bluerock — Tue, 21 Mar 2023 14:50:02 +0000

4 min read – Many investors are aware of the attractive benefits of investing in real estate such as income, capital appreciation, and potential tax advantages. However, investors struggle with the myriad of vehicle types to access real estate, all with their pros and cons.

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Why Individual Investors Should Consider Seeking Alternative Credit

Bluerock — Wed, 15 Feb 2023 21:07:16 +0000

5 min read – Traditional fixed income failed to deliver positive returns in 2022. Headlines have been reporting that bond returns delivered the worst year in U.S. history with a return of -13.0%1 for the Bloomberg US Aggregate Bond Index, which is a widely used measure of the publicly traded bond market.

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Contrasting CLOs to CDOs and CMBS

Bluerock — Wed, 15 Feb 2023 17:47:50 +0000

Collateralized loan obligations offer significant differentiators over other structured credit instruments: mainly structural safeguards, mandatory diversification, and active management.

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Long-Term Structural Tailwinds Favor Specific Sectors Despite Current Macro-Economic Challenges

Bluerock — Thu, 10 Nov 2022 22:37:37 +0000

Strong market fundamentals and sector specific structural drivers point to a bright future for a well-constructed institutional real estate portfolio. We believe investor concerns about the impact of rising interest rates on institutional private real estate values may be overstated given the strong market fundamentals and structural tailwinds that exist today.

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