Nuveen Chief Investment Officer Sees Widening Spread Between Property Sectors in Second Half

Against a backdrop of overall positive economic momentum, the performance gap between property sectors is likely to expand during the second half of the year, according to Carly Tripp, chief investment officer for the Americas at Nuveen Real Estate.

Speaking on the REIT Report, Tripp also discussed how to ideally go about positioning a portfolio amidst the current level of uncertainty.

“It’s really important to be disciplined and patient during times of uncertainty in order to not sacrifice long-term results or short-term gains,” Tripp said.

Tripp also commented on whether the pandemic will result in shifting views about what’s considered core and non-core real estate. She noted that ‘alternative’ real estate sectors, such as medical office, life sciences, and single family rentals, are becoming more institutional and have non-cyclical attributes that make them very resilient through cycles. These sectors will gain in popularity and in turn, will become more mainstream, thereby resulting in different definitions of core and non-core real estate over the longer term, she said.

Meanwhile, Tripp also highlighted the importance of focusing on assets that can be adaptable during times of rapid technological and regulatory change. She also stressed that, given all the factors currently in play right now, “investors really should focus on being very good at individual asset selection.”

Turning to ESG matters, Tripp said ESG is “an integrated part of everything we do. Right now we’re at a pivotal point in history when it comes to several ESG-focused considerations. So yes, I do anticipate that role increasing.”