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▶ 16:49 · Logistics Real Estate · Logistics shifts from overlooked sector to core portfolio pillar with massive cap rate compression
episode briefing
In Good Company with Nicolai Tangen

10 first years of real estate | Norges Bank Investment Management | NBIM Talk

2022-09-08 · 2 company · 5 thematic
sentiment
2 bull0 bear0 neu
speakers
mark burton

Five decades of real estate investing experience; previously led real estate for a major sovereign wealth fund; served on NBIM's real estate advisory board since 2010, providing perspective on strategy, market cycles, and partnership quality.

now playing · Logistics Real Estate
Logistics Real Estatetailwindscore 9/10mark burton
Logistics shifts from overlooked sector to core portfolio pillar with massive cap rate compression
Logistics real estate yields compressed from 7-8% to sub-4% over the decade, turning a 'poor third of the family' into a quarter of NBIM's portfolio; early conviction and scale with Prologi…
Macro & Ratestailwindscore 7/10mark burton
Long-term sovereign capital should exploit forced-seller opportunities with moderate leverage post-crisis
Mark Burton advises NBIM to take 15-20% leverage on deals and accept more leasing risk as forced sellers emerge, arguing rates won't rise soon and the portfolio's downside protection allows…
Private Marketstailwindscore 8/10carsten colwig
Concentrated city strategy with local teams beats broad diversification for sovereign-scale real estate
NBIM's focus on eight global cities with owned local teams (not third-party managers) enables deal access, specialized knowledge, and centralized discipline — accepting missed opportunities…
Private Marketstailwindscore 8/10carsten colwig
Partnership model requires dual alignment: economic (significant co-invest) and philosophical (shared horizon, no fee drag)
Over two-thirds of NBIM's investments are joint ventures; success hinges on partners investing meaningful equity (30-50% not 90-10) and sharing the same long-term view on buying, selling, a…
Office Market Transformationheadwindscore 7/10paul clark
Post-COVID office and retail demand requires granular tenant data platforms and operational agility
Owners must build digital platforms for granular relationships with all space users (work, live, shop, eat) and partner with tech operators to adapt buildings flexibly; COVID accelerated st…