Estimated $26.8 T U.S. CRE investable universe
- Institutional-quality represents $11.7 T (44%).
- Residential sectors control.
- Alternative sectors account for over 30%




WHY MEASURE THE INVESTABLE UNIVERSE?

The goal of this analysis is to provide investors with a benchmark for the size and scale of the U.S. business property (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 property investable universe mainly concentrate on country-level worldwide comparisons, taking a top-down approach to estimate the size of the overall industrial genuine estate market in each area. Existing literature does little to approximate the value of particular residential or commercial property types, not to mention alternative residential or commercial property sectors. This report intends to fill this space in the commercial property details landscape. Focusing solely on the United States, this report takes a bottom-up method, aggregating price quotes for the size of private business real estate residential or commercial property types to reach a worth for the overall business real estate market. This method enables segmentation between conventional and alternative residential or commercial property types, as well as the capability to approximate the share of “institutional” realty by sector.

Just how huge is the U.S. industrial real estate market? Although a relatively straightforward concern, approximating the size of the market is challenging for several reasons: lack of data and transparency (especially for smaller sized, less-liquid and historically tracked residential or commercial property sectors), the commonly varied nature of the range of investible residential or commercial property types, and inconsistent market definitions/classifications.

This analysis tries to respond to the concern through a two-step process: initially, approximating the gross possession worth of each residential or commercial property sector no matter ownership, tenancy, period, size, area, and quality. After arriving at a price quote for the general size of each sector, the second step is to apply filters based upon presumptions for constructing class, vintage, size and/or market to further 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 typical criteria of institutional financiers.

Sector sizes are estimated using the most trustworthy personal and public information sources for industrial property 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 approach to determining the total worth involves estimating the physical size of the sector, be it square footage, units, rooms, or beds