In a turbulent year with overall U.S. commercial real estate volume decline, increased activity in some alternative property sectors was a bright spot for the industry. Alternatives like self-storage, life sciences, manufactured housing communities, medical office and data center assets were collectively responsible for more than $47.9 billion in transaction volume in 2020, bringing these non-traditional real estate assets more into focus as investors sought yield, according to JLL.
“Prior to the pandemic, investors were already expanding their focus and allocation to alternative assets, with the alternatives sectors’ share of overall transaction volume rising to nine percent between 2017 and 2019 versus six percent from 2005 to 2007,” said Matthew Lawton, JLL Capital Markets co-head of investment sales advisory group. “Underpinned by secular and cyclical drivers, many of the alternative asset classes are expected to generate among the highest risk-adjusted returns on
