New commingled funds continue to close amid historically sluggish capital commitments, thanks in large part to the concessions managers are making to investors: management fees falling toward 1.5 percent or even 1.0 percent; incentive compensation structures adjusting to eliminate overfunded carried interest; and manager and fund termination decisions tilting toward majority LP control.

As real estate investment professionals across North America and around the globe have seen all too clearly during the past several calendar quarters, tax-exempt investor commitments to in-the-market commingled real estate funds are off dramatically. Contrarian opportunities notwithstanding, decision makers find it tough to pull the trigger when property values continue falling ---— not to mention the deflation they’ve also felt in most other portfolio asset classes. So, to sweeten the deal in hopes of luring investors, general partners are adjusting management fees, incenti