National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Institutions’ CRE Appetite Reaches 7-Year High
Despite concerns about asset valuations and weakening economic growth, the appetite for investment in commercial real estate among global institutions has reached its highest point in seven years, according to the seventh annual Institutional Real Estate Allocations Monitor from Hodes Weill & Associates and Cornell University’s Baker Program in Real Estate.
This marks the second consecutive year that confidence in the asset class has increased after five years of steady decline.
The 2019 survey’s “Conviction Index,” measuring institutions’ view of real estate as an investment opportunity from a risk-return standpoint, increased from 5.1 to 5.7. The rise reflects the fact that institutions continue realizing investment results well in excess of target returns.
“Globally, we’re in a yield-starved environment, and real estate has proven to be one of the few asset classes where investors can still find yield without exposure to excessive risk,” said Douglas Weill, managing partner at Hodes Weill.
For comments, questions or concerns, please contact Paul Bubny
- ◦Sale/Acquisition
