Background Note | HBS Case Collection | June 2009 (Revised August 2010)

How Institutional Investors Think About Real Estate

by Arthur I Segel

Abstract

Real estate is an increasingly important component in the portfolios of institutional investors. This note discusses the issues these investors must consider when investing in real estate from the legal forms of ownership, to separate or commingled funds, to property type and geography, to broad or focused managers, to leverage, to the timing of investment, and finally, to the compensation paid to both external managers and internal staff.

Keywords: Investment; Investment Funds; Investment Portfolio; Property; Financial Services Industry;

Citation:

Segel, Arthur I. "How Institutional Investors Think About Real Estate." Harvard Business School Background Note 209-152, June 2009. (Revised August 2010.)