Real estate redefined: exploring the hybrid future of real estate

Hybrid value

Real estate redefined: exploring the hybrid future of real estate

Hybrid value

Real estate is undergoing a fundamental redesign. Disruption to how we work, live and play is expanding the traditional parameters of real estate from physical structures to service-centric propositions. As a result, the value base is shifting.

Over

£8.5

billion

invested in operational real estate in 2021

(Source: CBRE)

0%

Digital implementation can increase net operating income (NOI) by 10% (Source: McKinsey)

0%

More than half of occupiers have paid a premium for green buildings (Source: JLL)

What do we mean by hybrid value? New ways to generate value afforded by radical change. Looking beyond capital appreciation and rental income and towards operational real estate, data-rich assets, branded developments, and ESG performance.

Today, questions of value need not focus solely on occupation but on how space is being used. Can we make spaces more productive, engaging and sustainable? What new levers can we pull to optimise returns?

Value drivers and income streams

Property

  • Rental income
  • Occupation
  • Covenant strength
  • Square footage
  • Capital appreciation

Experience

  • Operational real estate
  • Digital and physical amenities and services
  • Brand

Productivity

  • Asset management and operational efficiency
  • Data monetisation
  • ESG

Value drivers and income streams

Property


  • Rental income
  • Occupation
  • Covenant strength
  • Square footage
  • Capital appreciation

Experience


  • Operational real estate
  • Digital and physical amenities and services
  • Brand

Productivity


  • Asset management and operational efficiency
  • Data monetisation
  • ESG

Student accommodation and senior living: a hedge against volatility

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A data dichotomy

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Branded property has the edge

Learn more

ESG has currency

Learn more

Student accommodation and senior living: a hedge against volatility

Learn more

A data dichotomy

Learn more

Branded property has the edge

Learn more

ESG has currency

Learn more

Sector spotlight

Hotels: the mixologists are here

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Sector spotlight

Hotels: the mixologists are here

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Need to know

When tax and hybridity meet

Author: Liz Wilson, Partner, Taylor Wessing

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Need to know

Property data and the law

Author: Jo Joyce, Senior Counsel, Taylor Wessing

Read more

Need to know

When tax and hybridity meet

Author: Liz Wilson, Partner, Taylor Wessing

Read more

Need to know

Property data and the law

Author: Jo Joyce, Senior Counsel, Taylor Wessing

Read more
Part two: Hybrid strategy
Part three: Hybrid assets
How can we help you?

Get in touch to discuss how we can help you

A.lewington@taylorwessing.com

Get in touch to discuss how we can help you

A.lewington@taylorwessing.com