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



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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, individual residential or commercial property sectors and the "institutional" quality part of the marketplace. Up to this point, released estimates on the size of the industrial property investable universe mostly focus on country-level international contrasts, taking a top-down method to estimate the size of the total commercial property market in each area. Existing literature does little to estimate the worth 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 exclusively on the United States, this report takes a bottom-up approach, aggregating quotes for the size of individual industrial property or commercial property types to reach a worth for the overall commercial property market. This approach enables for division in between standard and alternative residential or commercial property types, along with the capability to approximate the share of "institutional" genuine estate by sector.
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Just how big is the U.S. industrial real estate market? Although a seemingly uncomplicated question, estimating the size of the marketplace is challenging for several factors: absence of information and openness (particularly for smaller, less-liquid and historically tracked residential or commercial property sectors), the widely diverse nature of the series of investible residential or commercial property types, and inconsistent industry definitions/classifications.

This analysis attempts to answer the question through a two-step procedure: initially, approximating the gross property value of each residential or commercial property sector no matter ownership, tenancy, tenure, size, location, and quality. After getting to a quote for the total size of each sector, the 2nd action is to apply filters based on assumptions for constructing class, vintage, size and/or market to further narrow the investable universe to just include institutional possessions - a subsegment of the investable universe that is restricted to residential or commercial properties that fit the common criteria of institutional financiers.

Sector sizes are estimated using the most trusted private and public information sources for business property offered, while also leveraging the knowledge and insights generated by Clarion and Rosen Consulting Group (RCG)'s experience in the market. For a lot of sectors, the method to computing the general worth involves approximating the physical size of the sector, be it square video footage, systems, rooms, or beds