USAA Real Estate releases 2022 outlook for North America and Europe

USAA Real Estate has developed several investment themes, which present attractive investment opportunities both in the near term and over the long run.

The slow-growth, low-yield environment that persisted before the pandemic had already set the stage for lower commercial real estate returns, and COVID-19 was originally thought to exacerbate the situation. However, commercial real estate returns are in-line from a historical perspective, as measured by the NCREIF Property Index (unlevered), and remain attractive today on a relative basis. The NCREIF ODCE Fund Index (levered) performance reached 21.1 percent in 2021. Given the recent rise in inflation, real estate is expected to play an increasingly important role in multi-asset portfolios in the years ahead.

In addition to providing an inflation hedge, the commercial real estate sector provides stable income and compelling total return prospects at a time when the traditional “60-40” portfolio (comprising 60 perce