Niche transaction activity has exploded in recent years and should continue to grow, according to Cushman & Wakefield.
While niche assets are less liquid than their conventional counterparts, the tremendous rise in capital allocated to commercial real estate (CRE) in recent years has made it harder for investors to identify opportunities, making investors more open to considering niche investments. Especially when in each of the last two recessions, niche assets outperformed the overall CRE benchmark, providing defensive exposure in a future downturn.
Niche asset volume in the first half of 2019 alone was more than in all of 2007, the previous cycle peak.
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