After a five-year period of volatility in commercial real estate returns, U.S. real estate, broadly defined, is reemerging as an appealing area within private markets.
Unlike the days of COVID-19, when U.S. office buildings stood empty and a bruising rate-hiking cycle led to a correction in real estate valuations, opportunities are emerging in new and unexpected pockets of the market. Housing affordability concerns are spurring a generational shift toward rental properties. Artificial intelligence (AI) and domestic manufacturing are driving demand for state-of-the-art industrial assets. And a lingering capital shortage in the bank lending ecosystem has shifted the balance of power toward private real estate lenders, who are stepping in to fill the gap.
We view real estate as a key source of portfolio diversification, providing inflation-resilient income and upside potential. Historically, real estate has been an attractive, natural hedge under conditions such as todayâ
