Estimated $26.8 T U.S. CRE investable universe
- Institutional-quality represents $11.7 T (44%).
- Residential sectors dominate.
- Alternative sectors represent over 30%
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WHY MEASURE THE INVESTABLE UNIVERSE?
The objective of this analysis is to offer investors with a benchmark for the size and scale of the U.S. business property (CRE) market, private residential or commercial property sectors and the "institutional" quality portion of the market. Up to this point, released estimates on the size of the industrial realty investable universe mainly concentrate on country-level global contrasts, taking a top-down approach to estimate the size of the total business genuine estate market in each region. Existing literature does little to estimate the worth of specific residential or commercial property types, not to mention alternative residential or commercial property sectors. This report aims to fill this space in the industrial real estate details landscape. Focusing specifically on the United States, this report takes a bottom-up approach, aggregating price quotes for the size of private business genuine estate residential or commercial property types to show up at a value for the total commercial realty market. This technique enables for segmentation between traditional and alternative residential or commercial property types, along with the ability to estimate the share of "institutional" property by sector.
Just how huge is the U.S. industrial realty market? Although an apparently uncomplicated concern, estimating the size of the market is challenging for a number of reasons: absence of information and transparency (particularly for smaller sized, less-liquid and historically tracked residential or commercial property sectors), the extensively varied nature of the variety of investible residential or commercial property types, and inconsistent market definitions/classifications.
This analysis tries to address the question through a two-step procedure: first, approximating the gross possession worth of each residential or commercial property sector despite ownership, occupancy, period, size, place, and quality. After showing up at an estimate for the overall size of each sector, the second action is to apply filters based on assumptions for constructing class, vintage, size and/or market to further narrow the investable universe to only include institutional properties - a subsegment of the investable universe that is restricted to residential or commercial properties that fit the normal requirements of institutional investors.
Sector sizes are estimated using the most trusted personal and public data sources for business genuine estate readily available, while likewise leveraging the understanding and insights generated by Clarion and Rosen Consulting Group (RCG)'s experience in the market. For most sectors, the technique to calculating the total worth includes approximating the physical size of the sector, be it square video footage, units, spaces, or beds
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The U.S. Commercial Real Estate Investable Universe
jennasteffen82 edited this page 1 week ago