Commercial real estate investors weigh their options

The current environment offers many strategies for real estate investment. But with a wide array of available options, investors need to consider the desirability of different real estate strategies, such as core versus value-added or debt versus equity.

One piece of evidence for investors’ opinions on core property investing are the long redemption queues for the open-end core funds of the NCREIF Fund Index – Open-end Diversified Core Equity (NFI-ODCE). Does this mean investors are looking to shift away from core to other private real estate? Are they moving out of real estate entirely? Or is the concern overblown?

Jennifer Stevens, co-founder and managing partner at Alliance Global Advisors, thinks that despite recent headlines highlighting redemption activity in the open-end commingled funds and private nontraded REIT space, core real estate will remain a significant allocation in a private real assets investment program.

“In addition to the diversifica