According to the NAR’s Commercial Connection, Research Report, the Commercial Real Estate market is looking positive for the rest of the year. Net absorption is expected to increase for all property types with the exception of apartment markets where there is an increased supply. New commercial construction will also grow albeit at a slower rate.
Institutional investment companies once considered Commercial Real Estate an alternative investment, not anymore. It is now the fourth institutional asset along with the traditional three asset classes of stocks, bonds and cash.
Development Magazine of the NAIOP explores this in their Spring 2015 issue. They state that Commercial Real Estate represents nearly 10 percent of a portfolio for institutional investors.
Real Estate provides portfolio diversification and can be an inflation hedge and offer competitive returns.