Defined contribution (DC) plans, the 401(k)s and similar accounts, now hold considerably more assets than the traditional defined benefit pensions they have gradually replaced. For most of their history, though, they have had little interest including private real estate in the investment programs they’ve been crafting for their participants.
The reason: Participants who expect daily pricing and ready liquidity sit awkwardly beside buildings that are appraised periodically and sell over months.
But lack of interest is changing. A new industry survey puts DC capital invested in private real estate above $51 billion, and Washington is writing rules that could promote significantly more interest in including the asset class in DC investment programs for their part
