Core traditional real estate has struggled to maintain capital inflows in recent years, as once critical investable sectors face secular demand challenges and investors remain uncertain on the near-term macroeconomic outlook. The current market dynamic is reflected in the performance of the NCREIF Fund Index – Open-end Diversified Core Equity (NFI-ODCE), a private index of open-ended core real estate funds predominantly invested in traditional sectors, which has acutely felt these pains in recent years. The index experienced a rise in redemption requests and slowing contributions for its constituent funds in first quarter 2023. Since 2016, the net investor cash flow has averaged –$1.4 billion annually compared with +$3.3 billion historically. However, investors are not signaling a lack of faith in commercial real estate, but rather a need for near-term liquidity and hesitancy for some sectors within commercial real estate that are vulnerable to macro trends, a slowing economy an