Value-add investing targets properties with improvement potential through physical upgrades, operational improvements, or lease-up. Active management creates returns beyond market appreciation.
Value-Add Strategies
- Physical renovation and modernization
- Operational efficiency improvements
- Lease-up of vacant space
- Below-market lease roll to market
Execution Requirements
Value-add success requires operational expertise, capital reserves, and realistic business plans. Basis and exit assumptions must support the investment thesis.