U.K. Quarterly Property Index

all property; standing investments; by lease length

Source: MSCI

Investors often think of their real estate exposure in terms of property type and geography, but there are many other potential factors that may help explain performance.

This analysis, using data from the MSCI UK Quarterly Property Index, shows lease length has historically been one such cyclical factor, with long leases having provided a performance boost during periods of weakening rental growth and short leases tending to out-perform during periods of stronger rental growth, an insight that may prove particularly relevant in today’s economic environment dominated by fears surrounding the potential impact of COVID-19.

Insights and data provided by MSCI Real Estate, a leading provider of real estate investment tools. A Vice President in MSCI’s global real estate research team, Reid focuses on performance measurement, portfolio management and risk related research for asset owners and investment managers. Based in Sydney, he covers APAC as well as global markets.