Key Takeaways
- • Heitman, a Chicago-based real estate investor with exposure to student housing, senior housing, and self-storage assets, operates a dedicated in-house European research function led by director Zubaer Mahboob to inform investment decisions across its portfolio.
- • In-house research teams provide distinct analytical capabilities that investment teams cannot deliver internally, including the ability to conduct deep-dive investigations in opaque real estate markets and gather on-the-ground intelligence that shapes capital allocation decisions.
- • Alternative data sources and methodologies play an increasingly important role in private market research, enabling firms to navigate information asymmetries and validate investment theses in markets where traditional data availability is limited.
- • Heitman's research function has demonstrably influenced investment outcomes, suggesting that institutional real estate investors are increasingly investing in proprietary research infrastructure as a competitive advantage in the alternative asset class.
Summary
Heitman, the Chicago-based real estate investment firm, has built a dedicated in-house research capability to enhance decision-making across its diversified portfolio of real estate assets. Zubaer Mahboob, director of European Research at Heitman, recently discussed the strategic role of proprietary research teams in navigating private markets during an interview with Private Equity Wire's "Alternative Views" program.
The firm's investment mandate spans multiple real estate verticals, including student housing, senior housing, and self-storage facilities—asset classes that vary significantly in market transparency and data availability. According to Mahboob's discussion, the primary value of dedicated research teams lies in their ability to perform analytical functions that differ fundamentally from the work of investment teams. Mahboob highlighted that research professionals can conduct investigations into opaque markets where institutional information gaps are significant, gathering on-the-ground testimony and primary-source evidence that investment committees require for thesis validation.
The use of alternative data represents another key differentiator for Heitman's research approach. As traditional market data in private real estate remains fragmented and incomplete, alternative data sources and methodologies enable firms to build proprietary information advantages. Mahboob's perspective underscores the increasing importance of research infrastructure in private markets, where information asymmetries create both challenges and opportunities for well-resourced investors.
Heitman's decision to maintain research functions in-house, rather than relying on third-party providers, reflects a broader institutional trend among large alternative asset managers. The firm's research output has directly influenced investment decisions and capital allocation, demonstrating measurable value creation. This approach positions Heitman competitively within the real estate investment landscape, where proprietary research capabilities increasingly function as a material source of alpha in private markets.
The firm's investment mandate spans multiple real estate verticals, including student housing, senior housing, and self-storage facilities—asset classes that vary significantly in market transparency and data availability. According to Mahboob's discussion, the primary value of dedicated research teams lies in their ability to perform analytical functions that differ fundamentally from the work of investment teams. Mahboob highlighted that research professionals can conduct investigations into opaque markets where institutional information gaps are significant, gathering on-the-ground testimony and primary-source evidence that investment committees require for thesis validation.
The use of alternative data represents another key differentiator for Heitman's research approach. As traditional market data in private real estate remains fragmented and incomplete, alternative data sources and methodologies enable firms to build proprietary information advantages. Mahboob's perspective underscores the increasing importance of research infrastructure in private markets, where information asymmetries create both challenges and opportunities for well-resourced investors.
Heitman's decision to maintain research functions in-house, rather than relying on third-party providers, reflects a broader institutional trend among large alternative asset managers. The firm's research output has directly influenced investment decisions and capital allocation, demonstrating measurable value creation. This approach positions Heitman competitively within the real estate investment landscape, where proprietary research capabilities increasingly function as a material source of alpha in private markets.
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