{"id":11212,"date":"2022-10-03T14:47:53","date_gmt":"2022-10-03T14:47:53","guid":{"rendered":"https:\/\/www.yardiinvestmentsuite.com\/?p=5802"},"modified":"2022-10-03T14:47:53","modified_gmt":"2022-10-03T14:47:53","slug":"new-re-investment-insight-in-yardi-wmre-report-2","status":"publish","type":"post","link":"https:\/\/www.yardiinvestmentsuite.com/en-gb\/blog\/new-re-investment-insight-in-yardi-wmre-report-2\/","title":{"rendered":"New RE Investment Insight: Yardi\/WMRE Report"},"content":{"rendered":"\n

Real estate represents stability and remains a cornerstone investment option in an era of increasing economic uncertainty, according to the inaugural WMRE Institutional Investor Survey of real estate industry participants across the U.S. The survey was sponsored this year by Yardi and originally published<\/a> by WMRE magazine.<\/p>\n\n\n

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As a measure of the industry\u2019s standing as an investment asset, more than 90% of respondents to the survey \u2013 which canvassed high-net-worth family advisors, private real estate investors, pension fund managers, institutional investors and life insurance companies \u2013 anticipate holding or increasing their real estate allocations. Just 7% anticipate that institutions will reduce such allocations.<\/p>\n\n\n\n

Instability in the stock and bond markets has spurred investors to value real estate for its status as a stable asset, a portfolio diversifier, a hedge against inflation and a steady source of income. \u201cReal estate tends to be less volatile and more consistent\u201d than stocks and many other assets, the report notes.<\/p>\n\n\n\n

Multifamily, industrial widely favored<\/h2>\n\n\n\n

The survey also reveals institutional investors\u2019 favored real estate markets, with multifamily (preferred by 67% of respondents), industrial (47%) and data centers (36%) leading the way. The $154.6 billion in multifamily sales in the first half of 2022 represented about 41% of all property transactions in that period, with industrial coming in second with $74.6 billion.<\/p>\n\n\n\n

The office and retail sectors were rated favorably by 14% and 12% of survey respondents, respectively, reflecting the reduced need for central physical work locations during the pandemic.<\/p>\n\n\n\n

Broadening geographic focus<\/h2>\n\n\n\n

Whereas institutions traditionally favored the six gateway cities \u2013 San Francisco, Los Angeles, New York, Boston, Washington and Chicago \u2013 investment activity now encompasses some 25 other top markets, principally Sun Belt areas with more affordable living. Growing metros previously considered secondary, such as Phoenix, Seattle and Denver, are receiving more attention from investors.<\/p>\n\n\n\n

\u201cWhat COVID did was really rip off the cover and accelerated the movement of \u2026 institutional money to those places where people were already moving,\u201d Jeff Adler, vice president of Yardi Matrix, notes in the report.<\/p>\n\n\n\n

Investment tech\u2019s role expands<\/h2>\n\n\n\n

Although only 35% of survey respondents use an investment management system to calculate promotes, waterfalls and other structures, \u201ca number of factors are driving technology further into the industry,\u201d the report says, including growing demand from institutional clients for real-time data and analytics.<\/p>\n\n\n\n

This set of expectations has given rise to automated investment management systems that connect information from the asset level through the investment structure to the investment with a previously unattainable degree of efficiency.<\/p>\n\n\n\n

Other topics covered in the report include:<\/p>\n\n\n\n