- November 1, 2016: Vol. 28, Number 10

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Initial reports indicate 2016 continues to trail 2015

by Sheila Hopkins

Early numbers are in for real estate investment funds closing in third quarter 2016 — and they continue to point to a slowing fundraising climate, according to Institutional Real Estate, Inc.’s FundTracker database. Fewer funds have closed, and less capital has been raised, in each of the three quarters completed so far in 2016 compared with the same three quarters in 2015. At this point in 2015, 107 funds had closed with a total of $89 billion raised. Preliminary numbers for funds closed by Sept. 30, 2016, indicate only 82 funds have closed this year with a total of $65 billion.

The number of funds closed in third quarter 2016 is about 25 percent below the number closed in third quarter 2015 — 20 and 26, respectively. The difference in the amount of capital raised is even greater, with $14.7 billion raised in third quarter 2016 versus $25.5 billion raised in the same period last year.

Year-over-year, funds took a little less time to close — 16.25 months on ave

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