For years, defined benefit plans have used private real estate to diversify their portfolios, reduce volatility and generate increased income. Defined contribution plans, however, have, for the most part, not introduced private real estate into their portfolios because this asset class doesn’t lend itself to the plans’ daily liquidity and pricing requirements. The Defined Contribution Real Estate Council (DCREC) and others currently are working on ways to overcome these challenges so private real estate can play a significant role in more defined contribution plans.

According to Scott Brooks, one of the founders of DCREC and managing director and head of client relations at Capview Partners, the council’s mission is “to promote the inclusion of investments in direct commercial real estate and real estate securities within defined contribution plans in order to improve participant outcomes.”

To date, early efforts have involved creating a fund of funds that ow