Alternatives are not very “alternative” anymore; rather, they have become part of the main dish for institutional investors, due to their competitive performance, diversification benefits and resilience through market cycles, according to a report, “From niche to norm: The mainstreaming of alternative property sectors,” by Clarion Partners’ Indraneel Karlekar, managing director, global head of investment research, and Jeremiah Lee, senior vice president, research officer, which was published in the May issue of Institutional Real Estate Americas.
“Alternative properties have performed well historically, both on an absolute and risk-adjusted basis,” says Lee. “An indication of the sector’s resilience, counter-cycle demand drivers and lower sensitivity to the shifts in the economic cycle is demonstrated in performance: alternatives outperformed traditional property types during and following down periods in the economic cycle.”
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