Saw this slide from BAML (on bond duration/convexity) and my academic inner-self overwhelmed me ... could not resist drawing on it ...

I have always felt that the appeal of value-add real estate is centred around the ability to improve the physical asset (changing expected duration) ... combined with .... the sectors capacity to capture GDP which is protection against adverse yield shift engendered by inflation risk .... this of course is predicated on selecting markets with favourable fundamentals of supply and demand ... the combined effect of which suggests that managers matter more in our sector that in other parts of the investment complex ... some people compare it to activists getting into "fallen angels" in the high yield bond market ... which is interesting in of itself as they often have similar capital structures to value-added real estate deals ...