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




WHY MEASURE THE INVESTABLE UNIVERSE?
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The goal of this analysis is to provide investors with a criteria for the size and scale of the U.S. industrial realty (CRE) market, specific residential or commercial property sectors and the "institutional" quality part of the marketplace. As much as this point, released price quotes on the size of the commercial real estate investable universe primarily concentrate on country-level worldwide contrasts, taking a top-down method to approximate the size of the total commercial realty market in each region. Existing literature does little to estimate the value of particular residential or commercial property types, let alone alternative residential or commercial property sectors. This report aims to fill this gap in the industrial genuine estate information landscape. Focusing specifically on the United States, this report takes a bottom-up method, aggregating price quotes for the size of private industrial property residential or commercial property types to come to a worth for the total commercial realty market. This technique enables division between standard and alternative residential or commercial property types, along with the ability to estimate the share of "institutional" realty by sector.

Just how huge is the U.S. commercial realty market? Although an apparently simple concern, approximating the size of the marketplace is challenging for several factors: absence of data and openness (especially for smaller, less-liquid and historically tracked residential or commercial property sectors), the extensively diverse nature of the variety of investible residential or commercial property types, and irregular market definitions/classifications.

This analysis attempts to respond to the concern through a two-step procedure: initially, estimating the gross property value of each residential or commercial property sector regardless of ownership, occupancy, period, size, location, and quality. After coming to an estimate for the total size of each sector, the second action is to use filters based upon assumptions for building class, vintage, size and/or market to further narrow the investable universe to only consist of institutional assets - a subsegment of the investable universe that is limited to residential or commercial properties that fit the normal criteria of institutional financiers.

Sector sizes are approximated utilizing the most reliable personal and public data sources for industrial genuine estate readily 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 technique to calculating the overall worth involves approximating the physical size of the sector, be it square video footage, units, spaces, or beds