Wise Forecasting
The forecasting model developed by our team was created to predict and quantify the movement of rents and “cap rates” of class A office during the investment cycle. With this capability in hand, we believe we can offer greater visibility of the best timing to enter and exit an investment, and a clearer perception of what returns to expect and at which levels of risk.
The model is also an essential tool in the management of the rent revisions, as not always the best time to make the rent alignment to market for the next three years is at the lease contract clause due date.
The model is based on statistical regression analysis of macroeconomic and real estate market data and is updated quarterly.
Financial Modeling
Our modeling uses monte-carlo simulations, based on carefully researched projections for the main variables of the market and real estate (including the offer and the demand side). For each element we forecast a mean and a standard deviation, which combined will generate the most probable ex-ante scenario with its standard deviation. We also have a clear view of the most sensible variables that can impact the result which then are identified for constant monitoring during the period of the investment management.
Following this methodology, we believe we can offer the investors a brighter and more accurate picture of his investments’ risks and returns.Â
