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News & opinion

16 MAY 2022

Commercial Real Estate can learn from Capital Markets data use

Venture capital and private equity have made significant investments in CRETech to support valuation but how has this investment improved our understanding of the value of commercial real estate?   How does the current focus on 'mark-to-market'; single point in time appraisal, limit our ability to support fund management and loan underwriting?  What are the broader questions that we need to answer using the concepts of value and volatility?  What can the valuation profession learn from the capital markets and their approach to portfolio management: correlation, diversification, risk-adjusted returns, maturity matching etc.?  Should valuers and the appraisal sector be thinking more about probabilities, rather than just the absolute value, and the shape of value distributions?

Howard Radley speaks with Andrew Knight as they discuss the opportunity to use data to improve our understanding of the relationship between value and risk for commercial real estate as an asset class.

More information regarding the Tech Partner Programme and Radley Associates can be found at www.rics.org/techpartner.

RICS Tech Partner discussion with Radley Associates