Impact real estate: Aiming to bridge investor and public-policy goals
The idea of achieving impact through real estate investments in the United States has taken many iterations or “flavours” over the years, from public-policy-aligned opportunity-zone investing to green real estate and more, all touting sustainability and community and economic development. However, “impact real estate” only accounts for about 10 percent to 15 percent (US$72 billion to US$107 billion) of total reported impact investing assets under management, despite the progress in this sector, according to a 2020 research paper by PGIM Real Estate. Many investors remain unaware of its full potential.
At a time when capital is vastly needed across the United States to support small businesses; improve and develop underserved, disadvantaged communities; and help the public and private sectors progress to achieve critical climate goals, impact real estate can prove to be an increasingly attractive asset class for the rare blend of quantifiable impacts, portfolio diversi