Mark Wojteczko, Deloitte’s national real estate funds co-leader, was a guest on the latest episode of Nareit’s REIT Report podcast. He reviewed findings from a recent Deloitte report into the rise of alternative property types and how upcoming changes in corporate leadership could accelerate that trend.
“We do believe that the emergence of these alternative property types is going to accelerate in the future and that many next-gen leaders are going to be a big part of that,” Wojteczko said, referring to an anticipated pick-up in c-suite retirements within the next decade. “We believe that the appetite for some of these younger executives to really continue to focus on the alternative property types as an investable universe is significant and something that we're certainly monitoring here.”
He added that fundamentals evident within sectors such as data centers, cell towers, life sciences, and senior living, alongside overall demographic trends, “are going to be really critical to the overall industry and growth of commercial real estate.”
According to Wojteczko, alternative property sectors have generally outperformed traditional property types over the past decade, with about 11% to 12% annualized returns versus 6%. Alternative property types are “clearly defined and well established on the public side,” he noted.