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Portfolios see substantive shift from office to industrial
Commercial real estate investment has seen a dramatic shift in portfolio allocations to various property types, according to a review of partnership data by Juniper Square in its 2022 CRE Market Pulse. Industrial’s share of holdings rose by nearly 14 percent, while office and hotels’ combined share declined by nearly 12 percent, according to Juniper Square. The report tracked shifts in commercial real estate investments by property type over the past decade, as well as trends in transaction volumes, acquisitions, fundraising and more.
Driven by the rise of ecommerce, the share of industrial land and properties in GP portfolios has grown from less than 4 percent to nearly 18 percent since 2013. Industrial transaction volume increased 70 percent from 2020 to 2022.
Meanwhile, the ability to meet virtually and work from home has decreased demand for office space and hotels, resulting in the share of office and hotel properties in GP portfolios decreasing from