makaan.com
Estimated $26.8 T U.S. CRE investable universe
- Institutional-quality represents $11.7 T (44%).
- Residential .
- Alternative sectors account for over 30%




WHY MEASURE THE INVESTABLE UNIVERSE?

The objective of this analysis is to offer financiers with a standard for the size and scale of the U.S. commercial property (CRE) market, private residential or commercial property sectors and the "institutional" quality portion of the marketplace. Up to this point, published estimates on the size of the commercial property investable universe mostly focus on country-level international comparisons, taking a top-down approach to approximate the size of the overall business realty market in each area. Existing literature does little to approximate the worth of particular residential or commercial property types, let alone alternative residential or commercial property sectors. This report aims to fill this space in the industrial genuine estate information landscape. Focusing exclusively on the United States, this report takes a bottom-up method, aggregating price quotes for the size of private commercial realty residential or commercial property types to get to a worth for the total commercial genuine estate market. This method permits division in 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. business genuine estate market? Although a relatively straightforward concern, estimating the size of the marketplace is challenging for several reasons: lack of information and transparency (especially for smaller, 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 industry definitions/classifications.

This analysis tries to answer the concern through a two-step procedure: initially, estimating the gross possession worth of each residential or commercial property sector regardless of ownership, tenancy, tenure, size, location, and quality. After reaching a price quote for the overall size of each sector, the second step is to use filters based on assumptions for constructing class, vintage, size and/or market to additional narrow the investable universe to just consist of institutional properties - a subsegment of the investable universe that is limited to residential or commercial properties that fit the typical requirements of institutional investors.

Sector sizes are estimated using the most trustworthy private and public information sources for industrial property readily available, while also leveraging the knowledge and insights created by Clarion and Rosen Consulting Group (RCG)'s experience in the market. For a lot of sectors, the technique to computing the total worth includes approximating the physical size of the sector, be it square video footage, systems, spaces, or beds