Lauren O’Neil on How Institutional Investors Are Adapting to the New CRE Cycle, Part 2

AEW Capital Management, COO Lauren O’Neil: How are institutional investors driving returns in today’s higher-rate, more complex CRE environment?

Welcome back to Bridging the Gap: Commercial Real Estate Intelligence, presented by Accrete Advisors.

In Part Two, host Jennifer Robertson continues her conversation with Lauren O’Neill, Chief Operating Officer and Managing Director at AEW Capital Management, to explore how one of the world’s largest real estate investment managers is evolving its approach to yield, partnerships, and risk.

From separate account strategies to development, debt, and today’s macro headwinds, this episode offers a deeper look at how institutional capital is adapting to a new cycle defined by higher interest rates, tighter margins, and greater operational discipline.

In this episode, we cover:

• The role of separate account clients, which make up a significant portion of AEW’s business, and how mandates differ from commingled funds

• Why today’s environment requires a renewed focus on income durability and active asset management to drive returns

• How AEW evaluates and selects operating partners, with an emphasis on local expertise and execution

• AEW’s current stance on development and debt strategies, including where they are being selective and where opportunities still exist

• Key macro headwinds, including regulatory pressure, tax environments, and broader market uncertainty

• How AEW is rethinking hold periods, with more flexibility around 5–7 year exits versus traditional 10-year assumptions

• Lessons from recent cycles, including “sector tourists” and risks tied to COVID-era construction

If you’re looking to understand how institutional investors are generating returns in today’s environment — and what’s changed from the last cycle — this is a conversation worth paying attention to.

Missed Part One? Start there for AEW’s sector-level strategy, capital deployment, and where they’re finding opportunity in 2026. [HYPERLINK EP 1 LINK]

Guest Bio: Lauren O’Neill is the Chief Operating Officer of AEW Capital Management and Managing Director of the firm. She oversees AEW’s day-to-day operations, working closely with Investor Relations, Finance, Human Resources, and Information Technology. Lauren also plays a key role in developing and maintaining strategic relationships nationwide and is an active member of AEW’s Senior Leadership Team, contributing to the firm’s overall vision and direction. She also serves on AEW’s Risk Management Committee.

Connect with Lauren on LinkedIn

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