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



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WHY MEASURE THE INVESTABLE UNIVERSE?

The objective of this analysis is to supply investors with a standard for the size and scale of the U.S. business property (CRE) market, individual residential or commercial property sectors and the "institutional" quality portion of the marketplace. Approximately this point, released quotes on the size of the commercial property investable universe mostly focus on country-level global contrasts, taking a top-down method to estimate the size of the general industrial property 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 aims to fill this space in the industrial property information landscape. Focusing exclusively on the United States, this report takes a bottom-up approach, aggregating price quotes for the size of specific business realty residential or commercial property types to get to a value for the general industrial property market. This approach enables segmentation between standard and alternative residential or commercial property types, as well as the capability to approximate the share of "institutional" real estate by sector.

Just how huge is the U.S. business property market? Although an apparently straightforward concern, approximating the size of the marketplace is challenging for numerous factors: absence of data and openness (specifically for smaller, less-liquid and traditionally tracked residential or commercial property sectors), the extensively varied 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: initially, approximating the gross property worth of each residential or commercial property sector despite ownership, occupancy, tenure, size, place, and quality. After getting to an estimate for the total size of each sector, the 2nd action is to use filters based upon presumptions for developing class, vintage, size and/or market to further narrow the to only consist of institutional possessions - a subsegment of the investable universe that is limited to residential or commercial properties that fit the typical requirements of institutional financiers.

Sector sizes are estimated using the most trustworthy personal and public information sources for commercial property readily available, while also leveraging the understanding and insights created by Clarion and Rosen Consulting Group (RCG)'s experience in the market. For most sectors, the technique to determining the overall worth involves approximating the physical size of the sector, be it square video, units, rooms, or beds