October 24, 2019 Comments Off on Institutions’ CRE Appetite Reaches 7-Year High Views: 1084 National News, Top National

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.

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Tags: Acquisition, Research

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Institutions’ CRE Appetite Reaches 7-Year High

Paul Bubny