Understanding The Value Of International CRE Data In The Micro-Macro Scale

There is a myriad of different levels and layers of data that go into commercial real estate analysis – almost too many if you’re looking to insert the value of international data in CRE. But rest assured, even on the smallest scale, international data can play a significant role. Depending on your individual goals, data suite, and investment strategy, you have the option to take pieces of your CRE data and examine it at the sector, industry, region, market, or even investigate individual properties themselves. And that’s just to start. But what role does international CRE data play in all these different viewpoints? We’ll dive deeper into answering that question in this blog.  

While the value of leveraging international CRE data on the macroeconomic scale is obvious, using its insights in your underwriting can give you an edge over the market (if used properly and timed right). For starters, this new data input gives you another opportunity to identify signals in the wider market to access new trends and new moves. It also gives you a different set of inputs: cultural values regarding investing and underwriting. For example, changes in tenant demand in one geographic region provides helpful readthrough for potential changes elsewhere. Further, monitoring changing environmental regulations provides readthrough for how local market regulations may evolve. 

Below are a few examples of insights focused on discrepancies between different countries/markets that may very well affect an investment strategy focused on international data inputs:  

1. Deceptive Optimism In CRE Office Vacancy
2. Energy In The Economy: Energy Is The Economy
3. Diving Into The Golden Age Of Data Centers

Consider the example of market specific density of data centers, where certain cities are already developing heavily with the booming sector ahead of other cities that are playing catch up as fast as they can. This can lead to shifts in your strategy regarding investing in certain supporting businesses related to data centers that have already been built as opposed to investing directly in the development of new data centers in other cities.  

You can check out our Global Property Allocator to see just how certain property sectors stack up against one another in terms of these varying investment opportunities.  

Green Street’s Global Property Allocator assesses the relative attractiveness of a wide variety of property types in the United States, United Kingdom, and Continental Europe across both private and public markets. The analysis, which is geared toward long-term, buy-and-hold investors, incorporates lessons learned about the big cross-sector differences that exist regarding growth potential and the true, long-term costs of ownership 

Just think of how much more informed your strategy would be by shaping a market-level strategy with additional insights from the surrounding region, or shaping a regional strategy with insights from the broader continent, or shaping your national strategy with expanded insights across international borders. 

Lastly, widening your data view to an international level comes with the usual investment benefits:  

• Portfolio diversification that can lower risk
• Broader set of opportunity that raises potential 
• More agility that can increase investment access  

In closing, the more thoughtfully comprehensive your CRE data inputs are for informing your investment strategy, the more prepared you are to drive returns and mitigate risk. Are you thinking about the broader macroeconomic drivers of CRE and how they flow down to the property-level, or do you currently have tunnel vision on your particular market of interest? Taking a multipronged approach to your investment strategy will give you insights that you may not have considered with just the micro focused eye. And the more empowered you are to see the trends, the more prepared you are to act on them.  

Green Street is waiting to show you how you can empower your strategies with CRE data, research, and news. When will you act on the opportunity? Join the other Green Street clients who are leveraging our industry-leading insights to drive alpha-generating returns. Read our testimonials and let our clients tell you for themselves.