The Employees Retirement System of Texas (ERS) has proposed a pacing plan of $450 million in target commitments to private real estate in the 2026 fiscal year, according to meeting materials. As of May 31, 2025, ERS had a 9 percent real estate allocation target and $4.1 billion in total real estate assets.
ERS’ portfolio is composed of 33 percent core commitments and 66 percent noncore commitments, and is significantly diversified, as 34 percent is allocated to residential assets, 18 percent to industrial, 21 percent to office, 6 percent to retail, 7 percent to hotel and 14 percent to other property types.
The current portfolio is underweight in the industrial sector as the residential category is overweight. The pension fund will place an emphasis on investing in industrial and residential opportunities moving forward.
