Six in 10 institutional investors expect to increase their commercial real estate holdings, according to a survey conducted by marketing firm Siegel+Gale on behalf of J.E. Robert, a global real estate investment management company. “It is encouraging to learn that despite the current turmoil in the overall financial markets, investor appetite for commercial real estate continues to grow," observed Michael E. Pralle, President and Chief Operating Officer of J.E. Robert Companies in a press release.
Private equity was the most popular form of investing in commercial real estate among respondents, with 42% saying they invested between $10 million to $500 million in private equity over the past year, compared with 29% in the same asset range invested in REITs and 29% through direct investments.
North America was the top choice for regions to invest in commercial real estate, at 44%; followed by Asia at 30% and Europe at 18%.
Siegel+Gale surveyed 254 investors, made up of “decision-makers” at large pension funds and executives at financial institutions, endowments and foundations, Sept. 15-26. Seventy-one percent of respondents were U.S. investors, 26% were European investors and the remainder came from other regions. Pension fund representatives comprised 48% of the respondents, followed by financial institutions at 25%, endowments at 10%, and foundations at 4%.
