In a sponsored report published in the June issue of Institutional Real Estate Americas, Nuveen’s Dan Manware, director of research, makes the case that institutional portfolios are still underallocated to alternatives, highlighting the diversification benefits and strong NOI growth they generate, which will be increasingly important as we head into a slow-growth cycle when investors can no longer expect cap rate compression to drive returns.
“Because alternative property types are driven by structural, long-term megatrends rather than near-term economic conditions, they are well-positioned for resilience and outperformance across market cycles. We expect their role in institutional real estate portfolios to grow significantly in the coming decades.”
To learn more, access a pdf of the report by clicking here.
