The 3rd Annual Survey of Institutional Real Estate Allocations has been released by Cornell University’s Baker Program in Real Estate in partnership with Hodes Weill & Associates.
Key Findings:
1. Target allocations continue to increase, albeit at a moderating pace.
2. Investors remain significantly under-invested in real estate.
3. Institutional real estate portfolios have generated an average annual investment return of 10.9% over the past three years, with annual returns increasing substantially year-over-year since 2012.
4. Institutions are increasingly concerned about asset pricing, rising interest rates and geopolitical risks.
5. While appetite for core investments remains robust, investors are increasingly emphasizing value-add strategies.
6. Institutions in APAC are focused on cross-border investments, while institutions in the Americas and EMEA continue to prioritize their home markets.
7. Institutions remain cautious about allocating capital to emerging markets, given global market and currency volatility, an overall flight to safety and commodity price fluctuations.
8. ESG plays a more prominent role in the investment process for institutions in EMEA relative to institutions in APAC and the Americas.
See the Full Report Here
Press Coverage:
o Bloomberg Brief – Investors Want More Property and Closed-End Funds; Some Accept Risk for Returns
o PERE – Hodes Weill: RE target returns likely to decline
o Pensions & Investments – Real estate continues strong performance despite lower expectations — report
o Estates Gazette – Institutions fret over property
o Property Investor Europe – Global property allocations could reach 15% in 10yrs – Cornell/Hodes Weill
o Property Funds World – Institutional property portfolios averaging 10.9 per cent annual return
o Benefits and Pensions Monitor Online – Institutions Look To Increase Allocations
o PREA Industry News – Inclusion of IPE Real Estate article in news blast
o REIT Zone – 2015 Survey Says
o Property Week – Institutional allocations to real estate continue to climb
o IPE Real Estate – Institutions to increase target real estate allocations for 2016
Download the Press Coverage Here
