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%




WHY MEASURE THE INVESTABLE UNIVERSE?

The goal of this analysis is to supply investors with a benchmark for the size and scale of the U.S. industrial property (CRE) market, specific residential or commercial property sectors and the "institutional" quality part of the marketplace. As much as this point, released quotes on the size of the industrial genuine estate investable universe mainly focus on country-level worldwide comparisons, taking a top-down approach to approximate the size of the total business property market in each area. Existing literature does little to estimate 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 business realty info landscape. Focusing solely on the United States, this report takes a bottom-up approach, aggregating price quotes for the size of private commercial real estate residential or commercial property types to get to a worth for the overall industrial realty market. This technique enables division in between standard and alternative residential or commercial property types, along with the ability to approximate the share of "institutional" genuine estate by sector.

Just how huge is the U.S. commercial property market? Although an apparently straightforward concern, approximating the size of the marketplace is challenging for a number of reasons: absence of data and transparency (especially 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 irregular market definitions/classifications.

This analysis tries to address the concern through a two-step procedure: first, approximating the gross asset value of each residential or commercial property sector no matter ownership, occupancy, period, size, area, and quality. After coming to a price quote for the total size of each sector, the 2nd action is to apply filters based upon presumptions for developing class, vintage, size and/or market to additional narrow the investable universe to just consist of institutional possessions - 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 personal and public data sources for commercial real estate offered, while also leveraging the understanding and insights generated by Clarion and Rosen Consulting Group (RCG)'s experience in the market. For most sectors, the approach to computing the overall value includes approximating the physical size of the sector, be it square video footage, systems, rooms, or beds