
Pent-Up Capital Demand Swells to $540B
Globally, investors hold $2.7 trillion of real estate assets under management, but have an appetite for more. Investors are seeking to place roughly $540 billion of capital into commercial real estate, according to an analysis completed by JLL.
An investment chasm is being driven by high demand from investors across the globe who seek the stable cash flow and low interest rates compared with volatility inherent in alternative investments. Yet, property opportunities just aren’t as readily available today in the U.S. market.
JLL’s Jonathan Geanakos says, “There is a wide gap between the current-to-target allocations of funds into commercial real estate, and many remain below their intended investment levels. The amount of pent-up demand in Europe and Asia should drive mid-term liquidity from those regional investors in the U.S. market, and has the potential to positively impact asset pricing in the mid-to-long-term.”
Europe holds the largest amount of capital targeted to invest in the sector at $274 billion (US) of capital demand, followed by Asia Pacific at $103.4 billion, the Americas at $63.1 billion and the Middle East at $39.6 billion.
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