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




WHY MEASURE THE INVESTABLE UNIVERSE?

The goal of this analysis is to supply investors with a criteria for the size and scale of the U.S. commercial real estate (CRE) market, private residential or commercial property sectors and the "institutional" quality portion of the marketplace. As much as this point, released estimates on the size of the industrial realty investable universe primarily concentrate on country-level global comparisons, taking a top-down method to approximate the size of the total industrial realty market in each area. Existing literature does little to approximate the value of specific residential or commercial property types, not to mention alternative residential or commercial property sectors. This report intends to fill this space in the commercial realty info landscape. Focusing specifically on the United States, this report takes a bottom-up method, aggregating estimates for the size of specific industrial property residential or commercial property types to get to a worth for the general industrial realty market. This approach allows for segmentation in between traditional and alternative residential or commercial property types, along with the capability to estimate the share of "institutional" genuine estate by sector.

Just how huge is the U.S. business realty market? Although a seemingly simple concern, approximating the size of the marketplace is challenging for a number of reasons: lack of information and transparency (particularly for smaller sized, less-liquid and traditionally tracked residential or commercial property sectors), the widely varied nature of the variety of investible residential or commercial property types, and inconsistent market definitions/classifications.

This analysis tries to answer the question through a two-step process: initially, estimating the gross possession value of each residential or commercial property sector regardless of ownership, tenancy, period, size, area, and . After getting to a price quote for the total size of each sector, the 2nd step is to apply filters based upon assumptions for developing class, vintage, size and/or market to more narrow the investable universe to just consist of institutional assets - a subsegment of the investable universe that is limited to residential or commercial properties that fit the common criteria of institutional financiers.

Sector sizes are estimated utilizing the most dependable private and public information sources for industrial property available, while also leveraging the understanding and insights created by Clarion and Rosen Consulting Group (RCG)'s experience in the market. For the majority of sectors, the method to computing the general worth includes approximating the physical size of the sector, be it square footage, units, spaces, or beds