Survey Highlights:
Investor appetite for real estate in 2021- 96% of surveyed investors plan to add commercial real estate (CRE) to their portfolios this year, beating out both stocks and bonds.
- Investors reported they’re planning to temper their exposure to the stock market–only 31% plan to invest more in stocks and only 7% plan to invest more in bonds. Of those surveyed, 48% actually plan to invest less in bonds.
- Among investors who have never invested in real estate, 95% intend to make their first CRE investment in 2021.
- Diversifying their portfolio and preserving wealth or capital were the two main reasons respondents were looking to add CRE to their portfolios.
- Investors reported they also value sponsor experience over targeted IRR when evaluating a potential opportunity.
- The Southeast was the clear region winner in real estate investing, beating the Midwest and Mountain Region by 13 percentage points.
- The effects of the pandemic showed through in investors’ opinions on their preferred asset classes, with multifamily and industrial topping the most-favored asset classes
