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%



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WHY MEASURE THE INVESTABLE UNIVERSE?

The goal of this analysis is to offer financiers with a criteria for the size and scale of the U.S. industrial property (CRE) market, specific residential or commercial property sectors and the "institutional" quality portion of the marketplace. As much as this point, released quotes on the size of the industrial property investable universe mostly focus on country-level international contrasts, taking a top-down method to approximate the size of the overall commercial realty market in each area. Existing literature does little to approximate the value 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 industrial realty information landscape. Focusing specifically on the United States, this report takes a bottom-up method, aggregating estimates for the size of specific business property residential or commercial property types to come to a value for the total commercial genuine estate market. This approach enables segmentation in between conventional and alternative residential or commercial property types, along with the capability to estimate the share of "institutional" genuine estate by sector.

Just how big is the U.S. business genuine estate market? Although a relatively straightforward question, estimating the size of the market is challenging for numerous factors: absence of information and openness (specifically for smaller, less-liquid and historically tracked residential or commercial property sectors), the widely varied nature of the variety of investible residential or commercial property types, and inconsistent market definitions/classifications.

This analysis tries to respond to the question through a two-step procedure: initially, estimating the gross asset worth of each residential or commercial property sector despite ownership, tenancy, period, size, area, and quality. After getting here at a price quote for the general size of each sector, the 2nd step is to apply filters based upon presumptions for constructing class, vintage, size and/or market to more narrow the investable universe to just include institutional assets - a subsegment of the investable universe that is limited to residential or commercial properties that fit the normal criteria of institutional financiers.

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