60 seconds with Tom Walker on the importance of GDP growth in real estate investing
Whether you are running a global real estate fund, a UK real estate or even a European real estate fund, the one key ingredient you have got to find is GDP growth.
Without economic growth you are not going to be able to charge your tenant a higher rent, whether they are an office company, or a shop, or an industrial unit.
So that’s the key thing that we look for – effectively we’re all GDP junkies in the real estate world.
We believe that there are certain cities around the world – and we refer to these as global cities, such as Los Angeles, New York and London – that are detaching away from the countries and regions they are in.
These very powerful global cities will continue to perform very well by virtue of their high quality infrastructure, very diversified economies, and talented workforces.
That is why we try and gain as much exposure as we can to these global cities.
The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.