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?

The objective of this analysis is to offer investors with a benchmark for the size and scale of the U.S. business realty (CRE) market, individual residential or commercial property sectors and the "institutional" quality part of the market. Up to this point, released quotes on the size of the business genuine estate investable universe primarily focus on country-level international comparisons, taking a top-down method to approximate the size of the general commercial property market in each region. Existing literature does little to estimate the value of particular residential or commercial property types, not to mention alternative residential or commercial property sectors. This report intends to fill this gap in the industrial property details landscape. Focusing specifically on the United States, this report takes a bottom-up approach, aggregating price quotes for the size of individual industrial property residential or commercial property types to show up at a value for the total business realty market. This technique permits division between standard and alternative residential or commercial property types, in addition to the capability to approximate the share of "institutional" property by sector.

Just how huge is the U.S. commercial realty market? Although a seemingly straightforward question, estimating the size of the market is challenging for a number of factors: lack of information and transparency (particularly for smaller, less-liquid and traditionally tracked residential or commercial property sectors), the extensively diverse nature of the series of investible residential or commercial property types, and inconsistent industry definitions/classifications.

This analysis tries to respond to the question through a two-step procedure: initially, approximating the gross asset worth of each residential or commercial property sector despite ownership, tenancy, period, size, location, and quality. After showing up at a quote for the overall size of each sector, the 2nd action is to apply filters based upon presumptions for building class, vintage, size and/or market to more 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 investors.

Sector sizes are approximated utilizing the most dependable private and public information sources for industrial realty available, while likewise leveraging the knowledge and insights generated by Clarion and Rosen Consulting Group (RCG)'s experience in the market. For the majority of sectors, the method to calculating the overall value includes estimating the physical size of the sector, be it square video, systems, rooms, or beds