Current Practices in Benchmarking Real Estate Investment Performance (September 2018) Full Report
Benchmarks provide the basis on which performance is monitored and judged and can also be used to determine strategic asset allocation, as well as form the basis of and characterise investment mandates. This study examines the nature of benchmarks and investigates their range and application, predominantly in relation to the UK private real estate market but also extending to international investment practices. To identify prevailing approaches and understand the drivers of choice of benchmark, Heriot-Watt University undertook a survey of major institutional investors, with real estate assets under management approaching £180bn in the UK and £515bn overseas. Two case studies illustrate how benchmarks have evolved over the last three decades in the UK.