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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 goal of this analysis is to offer financiers with a benchmark for the size and scale of the U.S. business property (CRE) market, private residential or commercial property sectors and the "institutional" quality part of the market. Approximately this point, published estimates on the size of the commercial property investable universe primarily focus on country-level international contrasts, taking a top-down approach to approximate the size of the total business property market in each region. Existing literature does little to approximate the value of particular residential or commercial property types, let alone alternative residential or commercial property sectors. This report aims to fill this space in the commercial property info landscape. Focusing specifically on the United States, this report takes a bottom-up approach, aggregating estimates for the size of private business realty residential or commercial property types to come to a value for the total commercial property market. This approach allows for segmentation between standard and alternative residential or commercial property types, along with the capability to approximate the share of "institutional" property by sector.

Just how big is the U.S. commercial realty market? Although a seemingly uncomplicated question, approximating the size of the marketplace is challenging for several factors: absence of information and transparency (particularly for smaller, less-liquid and traditionally tracked residential or commercial property sectors), the commonly varied nature of the series of investible residential or commercial property types, and irregular market definitions/classifications.

This analysis tries to answer the concern through a two-step process: initially, estimating the gross property worth of each residential or commercial property sector regardless of ownership, tenancy, tenure, size, area, and quality. After getting here at a 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 assets - a subsegment of the investable universe that is limited to residential or commercial properties that fit the common requirements of institutional investors.

Sector sizes are estimated using the most trusted private and public data sources for commercial genuine estate offered, while also leveraging the knowledge and insights created by Clarion and Rosen Consulting Group (RCG)'s experience in the market. For most sectors, the method to determining the general value involves estimating the physical size of the sector, be it square video, units, rooms, or beds