Why Operational & Infrastructure Assets Are Reshaping Real Estate Modelling

Let’s talk about why operational and infrastructure assets are booming…and how it’s changing how we model deals.

It’s becoming obvious that alternative assets are simply not “alternative” anymore.

Across CRE markets, investors are quickly shifting capital more towards operational and digital infrastructure – assets like data centres, cold storage, EV charging, and last-mile logistics.

These sectors intersect real estate, technology and operations, and all the latest market insights indicate they are growing faster than CRE’s more “traditional” asset classes.

But one point often gets overlooked: this shift isn’t just changing portfolios – it’s changing how we underwrite, structure and model deals.

What’s behind the shift?

We have broken it down into three major forces, which we believe are pushing capital and investments into these assets:

1. Sector demand growth

Advances in digitalisation, e-commerce behaviours and AI computing (to name a few) are driving longer-term demand that’s proving more consistent than that for office or retail assets. Great news for investors who love stability!

2. Income from alternative assets is starting to resemble that of infrastructure projects rather than property

There are many benefits of operational assets, including longer leases or service contracts – leading to stickier occupiers– and higher barriers to entry, with more investment needed to set up. In other words, again – these assets are becoming stable, more predictable options.

3. Structural undersupply

If you look across these key alternative assets there is one consistent factor: Due to under-investment, demand currently outweighs supply.

Digital infrastructure is leading the charge

The best example? Data centres.

You’ve seen the headlines:

• Data centre demand has become one of the strongest global real estate themes

• AI and cloud growth are driving unprecedented take-up

• Power availability is now the real limiting factor, not capital

CBRE, Equinix, JLL, and others have all reaffirmed the same trend: digital infrastructure is now a core allocation for global investors, (not a niche strategy).

This is why we’re now seeing more firms looking for modellers with infrastructure, energy, or operational backgrounds – not just traditional real estate experience.

Five reasons why this matters for modelling:

1. Revenue isn’t just rent anymore - Operational and digital assets generate income from power, utilisation, services, capacity, and contracts - so you need to think of it as modelling a business unit, not just a building.

2. OpEx becomes a core value driver - All operational costs, including energy, staffing costs, maintenance and tech costs can have a huge impact on margins, making operational modelling essential!

3. CapEx is ongoing, not one-and-done - These assets need upgrades, replacements and staged expansions, so CapEx becomes recurring and lumpy.

4. Sensitivities matter far more - You are no longer only testing exit yield & and rent growth. Power prices, utilisation curves, demand absorption and downtime risk - the variables that move value are different (and more volatile).

5. Deal structures get more complex - Joint ventures with operators, management contracts, revenue-sharing, and multiple financing layers mean models need to be built to handle many more considerations and players.

How EiP Helps You Get Ahead in This Shift

Within the EiP Academy, you learn exactly how to deal with these changes in the market, with expert-led sessions, deal-based case studies, and 1:1 mentoring from experts who have experience modelling for £3bn+ in real estate deals.

📌 Find out more about the Academy here → https://excelinproperty.com/eip-academy

📌 Want ready-to-use financial models? Join the Model Library waitlist → https://excelinproperty.com/eip-model-library

What are your thoughts? We’d love to hear how you’re seeing this shift play out.