Estimated $26.8 T U.S. CRE investable universe
- Institutional-quality represents $11.7 T (44%).
- Residential sectors control.
- Alternative sectors represent over 30%
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WHY MEASURE THE INVESTABLE UNIVERSE?

The objective of this analysis is to supply financiers with a standard for the size and scale of the U.S. business genuine estate (CRE) market, individual residential or commercial property sectors and the "institutional" quality portion of the market. As much as this point, released price quotes on the size of the industrial realty investable universe primarily concentrate on country-level worldwide contrasts, taking a top-down method to approximate the size of the overall industrial genuine estate market in each area. Existing literature does little to approximate the worth of specific residential or commercial property types, let alone alternative residential or commercial property sectors. This report intends to fill this gap in the commercial genuine estate info landscape. Focusing solely on the United States, this report takes a bottom-up approach, aggregating price quotes for the size of individual commercial genuine estate residential or commercial property types to get here at a worth for the total market. This technique enables division in between standard and alternative residential or commercial property types, along with the capability to estimate the share of "institutional" property by sector.

Just how huge is the U.S. industrial genuine estate market? Although an apparently simple question, approximating the size of the marketplace is challenging for a number of factors: lack of information and transparency (particularly for smaller sized, less-liquid and historically tracked residential or commercial property sectors), the extensively varied nature of the variety of investible residential or commercial property types, and inconsistent industry definitions/classifications.

This analysis attempts to respond to the question through a two-step procedure: first, estimating the gross property worth of each residential or commercial property sector no matter ownership, occupancy, period, size, place, and quality. After reaching an estimate for the total size of each sector, the 2nd step is to use filters based upon assumptions for constructing class, vintage, size and/or market to more narrow the investable universe to only include institutional possessions - a subsegment of the investable universe that is restricted to residential or commercial properties that fit the normal requirements of institutional financiers.

Sector sizes are estimated utilizing the most reputable personal and public data sources for industrial property available, while likewise leveraging the knowledge and insights produced by Clarion and Rosen Consulting Group (RCG)'s experience in the market. For the majority of sectors, the approach to determining the total value includes approximating the physical size of the sector, be it square footage, systems, spaces, or beds