Institutional investors increased their target allocation to commercial real estate this year to 10.6 percent from 10.5 percent in 2019 and are now 170 basis points higher than they were 12 years ago. But they largely remain under-allocated to the asset class, relative to their target allocations, which should help beef up what so far has been a lackluster year in terms of sales transaction volumes, which through October were down 40 percent from last year. That's according t

Uncertainties related to Covid-19 have not dampened global institutions’ confidence in commercial real estate. In fact, investor sentiment increased for the third straight year, reaching a seven-year high in 2020, according to Hodes Weill & Associates and Cornell University’s Baker Program in Real Estate’s eighth annual Institutional Real Estate Allocations Monitor. The “Conviction Index” in this year’s survey, which measures institutions’ view of real estate as an investment

Institutions are decreasing core and value add allocations to make room for distress in their portfolios. It is a truism that institutional investors in commercial real estate tend to play it safe, preferring core land value-add strategies and properties in gateway markets. In recent years many of these funds have pushed the envelope to consider secondary market investments but 2020 marked a significant pivot for these funds: a focus on distress. This, of course, is little su

Real estate allocations and institutional investor confidence in the asset class have both risen this year, despite the uncertainty and disruption wrought by COVID-19, according to a report. The eighth annual Institutional Real Estate Allocations Monitor survey by Hodes Weill & Associates and Cornell University found that investor sentiment rose for the third straight year in 2020. Its “conviction index”, which measures institutional investors’ view of real estate from risk-r