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



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WHY MEASURE THE INVESTABLE UNIVERSE?

The objective of this analysis is to offer financiers with a benchmark for the size and scale of the U.S. business genuine estate (CRE) market, private residential or commercial property sectors and the "institutional" quality part of the market. Up to this point, released price quotes on the size of the industrial realty investable universe mostly concentrate on country-level global comparisons, taking a top-down approach to estimate the size of the overall business real estate 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 intends to fill this gap in the business property information landscape. Focusing specifically on the United States, this report takes a bottom-up approach, aggregating price quotes for the size of specific commercial realty residential or commercial property types to show up at a worth for the total business realty market. This approach enables division between traditional and alternative residential or commercial property types, along with the capability to estimate the share of "institutional" realty by sector.

Just how big is the U.S. commercial property market? Although a relatively uncomplicated concern, approximating the size of the marketplace is challenging for a number of factors: lack of data and transparency (specifically for smaller, less-liquid and traditionally tracked residential or commercial property sectors), the widely diverse 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, approximating the gross property worth of each residential or commercial property sector regardless of ownership, occupancy, period, size, place, and quality. After getting to an estimate for the general size of each sector, the 2nd step is to apply filters based on assumptions for developing class, vintage, size and/or market to additional narrow the investable universe to only include institutional possessions - a subsegment of the investable universe that is limited to residential or commercial properties that fit the common requirements of institutional investors.

Sector sizes are approximated using the most reliable personal and public data sources for industrial property available, while likewise leveraging the knowledge and insights created by Clarion and Rosen Consulting Group (RCG)'s experience in the market. For most sectors, the method to determining the total value involves approximating the physical size of the sector, be it square video, systems, rooms, or beds