Institutional investors plan to rein in real estate investments in 2020

Global institutional investors, such as pension funds, endowments, and foundations, plan to reduce their new capital commitments to real estate by an average of 11 percent in 2020, according to the 24th annual Institutional Investors Real Estate Trends report, conducted by Institutional Real Estate, Inc. and Kingsley Associates. In addition, the survey reveals U.S. investors plan to commit $70 billion of new capital to real estate this year, down from $75 billion in 2019.

“Our survey is a little different in that it’s forward-looking,” explained Jim Woidat, executive vice president with Kingsley Associates. The survey is designed to identify institutional investors’ plans for real estate in 2020 and “helps us understand what investors are thinking about,” added Woidat.

The survey focuses, in particular, on the largest and most influential investors who are driving trends in the market. Responses were gathered between Nov. 12, 2019, and Feb. 4, 20