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



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WHY MEASURE THE INVESTABLE UNIVERSE?

The objective of this analysis is to offer investors with a benchmark for the size and scale of the U.S. commercial genuine estate (CRE) market, individual residential or commercial property sectors and the "institutional" quality portion of the marketplace. Approximately this point, released estimates on the size of the commercial real estate investable universe mainly focus on country-level worldwide contrasts, taking a top-down approach to estimate the size of the total industrial genuine estate market in each region. Existing literature does little to estimate the worth of particular residential or commercial property types, let alone alternative residential or commercial property sectors. This report intends to fill this space in the industrial genuine estate details landscape. Focusing solely on the United States, this report takes a bottom-up approach, aggregating quotes for the size of private business real estate residential or commercial property types to get here at a value for the total commercial genuine estate market. This method enables segmentation between traditional and alternative residential or commercial property types, as well as the ability to estimate the share of "institutional" property by sector.

Just how huge is the U.S. commercial property market? Although a seemingly uncomplicated concern, estimating the size of the marketplace is challenging for numerous factors: lack of information and transparency (particularly for smaller sized, less-liquid and traditionally tracked residential or commercial property sectors), the extensively diverse nature of the variety of investible residential or commercial property types, and irregular industry definitions/classifications.

This analysis tries to answer the concern through a two-step procedure: first, estimating the gross value of each residential or commercial property sector regardless of ownership, occupancy, period, size, place, and quality. After coming to an estimate for the total size of each sector, the 2nd action is to use filters based upon presumptions for building class, vintage, size and/or market to more narrow the investable universe to just include institutional properties - a subsegment of the investable universe that is restricted to residential or commercial properties that fit the common requirements of institutional investors.

Sector sizes are approximated utilizing the most reliable personal and public data sources for business realty available, while also leveraging the knowledge and insights generated by Clarion and Rosen Consulting Group (RCG)'s experience in the market. For many sectors, the method to determining the general worth involves estimating the physical size of the sector, be it square footage, units, spaces, or beds