Top 20 firms control 53% of industry assets
Post–global financial crisis, investors have gained a new appreciation for the real estate asset class. It not only provides a healthy yield in today’s low yield investment environment, but real estate also can generate steady income, deliver portfolio diversification and serve as a potential hedge against inflation. This enhanced appreciation has seen institutional investors around the globe direct more capital to the real estate asset class in recent years.
With more capital coming into the market and properties in many markets registering capital gains, real estate investment managers worldwide are seeing growth in their asset base. In fact, the gross asset value of the top 100 investment managers increased by 10 percent in 2013, according to Global Investment Managers 2014, an annual survey conducted by Property Funds Research and Institutional Real Estate, Inc. The aggregate total assets under management for the largest 100 firms reached $2.14