Specialty

Self-storage, data centres, senior housing, life sciences: operator-driven assets with demographic tailwinds.

Property Types

  • Self-storage (climate-controlled and drive-up)
  • Data centre (colocation, hyperscale, edge)
  • Senior housing (independent living, assisted living, memory care)
  • Medical office building (MOB) / outpatient clinic
  • Cold storage / temperature-controlled logistics
  • Life sciences (wet lab, dry lab, GMP manufacturing)

Physical Attributes

  • Climate control requirements: temperature, humidity, air changes per hour
  • Power density (watts per SF) and redundancy (N+1, 2N) for data centres
  • Acuity levels and licensing requirements for senior housing (IL/AL/MC)
  • Lab specifications: bench depth, fume hoods, biosafety level, vibration control
  • Vault and unit configuration systems for self-storage (unit mix by SF tier)

Value-Add

  • Occupancy optimization through dynamic pricing and revenue management (storage)
  • Unit mix reconfiguration based on demand analytics and seasonal patterns
  • Technology upgrade: building automation, access control, monitoring systems
  • Licensed care capacity expansion for senior housing (bed count, acuity mix)
  • Power and cooling infrastructure upgrade for data centre densification

Appraisal Approach

  • Income approach often combined with cost approach for specialized improvements
  • Going-concern allocation where operator value is material (seniors, hotels)
  • Replacement cost analysis critical for high-spec facilities (data, lab, cold)
  • Comparable transactions scarce; heavy reliance on income approach and DCF

Management

  • Specialized operators required for management-intensive asset classes
  • Regulatory compliance: healthcare licensing, food safety, data privacy
  • Clinical vs non-clinical management separation in senior and medical assets
  • Vendor management for specialized MEP systems and technology infrastructure

Strategic Concepts

  • Demographic tailwinds: aging population driving senior housing demand
  • E-commerce and cold chain tailwinds for temperature-controlled logistics
  • Power infrastructure availability as a competitive moat for data centres
  • Operator selection as the primary value driver in management-intensive assets
  • Barriers to entry from specialized construction, licensing, and entitlement

Related topics

Going Concern Value in CRE AppraisalHighest and Best Use in CRE ValuationProperty Condition Assessment in CRE Due DiligenceCapital Expenditure Planning in CRE Asset ManagementCore Strategy in CRE InvestingOpportunistic CRE Investing: Risk, Return, and Structure
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