Making Sense of the Private Real Estate Market Environment

Aaron Quach helps institutional investors make sense of the valuations for their private real estate investments in the current interest rate environment.

Pandemic Hit All Sectors; REITs Gained but Trailed Equities

COVID-19 continues to affect the real estate market, with the impact varying depending on the property sector.

Pandemic Reshapes the Outlook for Farmland Investments

View Newsletter There may never be another global event akin to the COVID-19 pandemic in our lifetimes that more clearly tests the investment thesis for farmland as a component of a diversified institutional investment portfolio. Investors make strategic allocations to farmland for its diversification potential, low correlation to more traditional asset classes, and inflation-hedging properties. […]

Private RE Returns Positive; Global REITs Underperform

View Newsletter Private real estate results positive due to income Initial impact of pandemic reflected in 1Q20 results Positive return due to income Industrial real estate performed well. Retail depreciation accelerated this quarter. The dispersion of returns by manager within the NCREIF ODCE Index was due not only to the composition of underlying portfolios but […]

Toughest Quarter Since GFC for Real Assets

Real asset returns were significantly challenged during the first quarter of 2020, March in particular, as almost the entire space (except gold and TIPS) experienced performance not seen since the Global Financial Crisis. The MLP space (Alerian MLP Index: -57%) and energy-related stocks (S&P 1200 Energy Index: -44%) were among the worst hit as Russia […]

NCREIF Property Index Chugs Along; REITs Hit Hard

The NCREIF Property Index gained 1.7% during the first quarter (1.1% from income and 0.6% from appreciation). This marked the 33rd consecutive quarter of positive returns for the Index. Industrial (+3.3%) was the best-performing sector for the eighth consecutive quarter with Office (+1.8%) and Apartments (+1.5%) also posting strong returns; Retail (+0.7%) was the worst […]

4th Quarter Update on Commercial Real Estate

View Market Review The NCREIF Property Index advanced 1.8% during the fourth quarter (1.2% from income and 0.6% from appreciation). This marked the 36th consecutive quarter of positive returns for the Index. Industrial (+3.3%) was the best-performing sector for the seventh consecutive quarter. Office (+1.7%) and Apartments (+1.6%) also did well. Hotels (+1.0%) were the […]