Andy McCulloch, managing director of real estate analytics at Green Street Advisors, joined Nareit in New York for a video interview at REITweek: 2019 Investor Conference.
McCulloch said it’s easy to acquire data today, but it’s difficult to manage and digest it all, and that Green Street has been “forced to go much more granular in the analysis of the underlying real estate.”
“Green Street grades and scores the dirt under every single REIT-owned asset, and that takes a unique skillset,” he said.
McCulloch also discussed how Green Street provides buy, hold, and sell recommendations on all the REITs in its coverage universe. He said stock picking is harder today for three reasons: Subpar management teams are largely gone from the space; companies are more homogenous with their portfolios and capital structures; and the availability of data has improved the efficiency of the market.
“I don’t think that the REIT market is fully efficient [though],” he said. “You can still create alpha through active management.”
McCulloch called PropTech “incredibly hot” and said its outlook is bright, but stopped short of calling Green Street an all-out PropTech company.
“Traditional research and advisory is still a core focus for us. Being thought leaders has always been in the Green Street DNA,” he said.