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 goal of this analysis is to offer investors with a criteria for the size and scale of the U.S. business real estate (CRE) market, private residential or commercial property sectors and the “institutional” quality portion of the marketplace. Approximately this point, published estimates on the size of the industrial real estate investable universe mainly focus on country-level global contrasts, taking a top-down approach to estimate the size of the overall commercial genuine estate market in each region. Existing literature does little to estimate the worth 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 commercial real estate details landscape. Focusing exclusively on the United States, this report takes a bottom-up method, aggregating estimates for the size of private industrial realty residential or commercial property types to get to a worth for the overall industrial realty market. This method permits segmentation between standard and alternative residential or commercial property types, as well as the ability to approximate the share of “institutional” realty by sector.

Just how huge is the U.S. industrial realty market? Although an apparently simple question, approximating the size of the marketplace is challenging for a number of reasons: absence of data and openness (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 property value of each residential or commercial property sector despite ownership, tenancy, tenure, size, location, and quality. After showing up at an estimate for the general size of each sector, the second step is to apply filters based on assumptions for constructing class, vintage, size and/or market to further narrow the investable universe to just consist of institutional possessions - a subsegment of the investable universe that is restricted to residential or commercial properties that fit the typical criteria of institutional investors.

Sector sizes are approximated utilizing the most trusted private and public data sources for commercial realty offered, while also leveraging the knowledge and insights created by Clarion and Rosen Consulting Group (RCG)’s experience in the market. For the majority of sectors, the technique to determining the overall value involves estimating the physical size of the sector, be it square video, units, spaces, or beds