Target allocations to real estate in institutional portfolios have continued to climb in 2018 and will increase further, according to the findings of the 2018 Institutional Real Estate Allocations Monitor from Cornell University’s Baker Program in Real Estate and Hodes Weill & Associates.

The report focuses on the role of real estate in institutional portfolios, and the impact of institutional allocation trends on the investment management industry.

Led by institutions in Asia Pacific and EMEA, institutions also are forecast to increase average target allocations over the next 12 months. In addition, the value of institutional real estate portfolios grew significantly over the past 12 months and, despite an increase in actual allocations, institutions remain meaningfully under-invested relative to target allocations.

Following two years of moderating portfolio investment returns, performance increased in 2017, while institutional conviction for th