2022 Why Private Real Estate?

Contributors

Will McIntosh, Ph.D
Global Head of Research

Jay Johnston
Senior Associate, Research

Greg Stark
Executive Managing Director, Private Wealth

Jeff Holland
Managing Director, Private Wealth

April 2022

Executive Summary

  • Commercial real estate (CRE) represents a significant portion of the global universe of investable assets and should be viewed as a critical building block in portfolio construction for both individual and institutional investors. As such, private real estate should be considered as the third leg of the stool in a traditional stock and bond portfolio.
  • CRE is comprised of equity and debt investments through public and private markets. An allocation to private real estate can provide attractive risk-adjusted returns, excellent portfolio diversification, and a hedge against inflation; while maintaining or enhancing levels of current income for investors.
  • When building a private real estate allocation, it is critically important that investors have a firm understanding of what they own and disciplined focus on selecting an investment matching their primary goals.