Operational real estate (OpRE) represents a distinct segment of the property investment market where returns are directly linked to the revenues and profits generated by business operations within the asset. Unlike traditional real estate investments, where income streams come primarily from long-term leases, OpRE integrates real estate and business functions. Success in this sector depends on understanding both the physical asset and the underlying operational business.
As INREV notes:
"Operational Real Estate (OpRE) is a rapidly evolving component of the real estate market, as investors seek innovative ways to maximise value, mitigate risk, and hedge against inflation. OpRE has emerged as a strategic investment option, particularly in today’s dynamic landscape, where shifting consumer demands and expectations are reshaping the real estate industry."