Mackenzie Minute: September 29, 2017
Phil Taller, Head of the Mackenzie Growth Team, says real estate is opening up to new business models, creating investment opportunities.
PHIL TALLER: We are seeing two interesting trends going on in real estate, which we find pretty exciting right now. One is the fact that people aren’t shopping in physical locations anymore and so that’s opening up real estate as stores close down. Many retailers are closing down brick-and-mortar locations. The other one is real estate as an asset class. More and more investors are looking at real estate as just another asset class to invest in and they need services around that.
So given that more and more retailers are shutting down physical locations, it’s opening up real estate for new business models. One, for example, that we are involved in is Bright Horizons Family Solutions, which offers childcare and daycare to parents who work for corporations. Corporations are sponsoring these daycare centers to open up and help employees remain more engaged and more at work.
So as real estate gets looked at as an asset class for investment, the people that are going to invest need services to do that. CoStar Group is a company we own that dominates commercial real estate data. People need that to understand what they are investing in. CoreLogic in the mortgage market. And then Kennedy Wilson, who is a portfolio manager in real estate in the US and globally. I think as real estate becomes an asset class for investment, it becomes an area where real estate companies can grow beyond their traditional markets.