Why CRE Investors Need to Keep Their Eyes on the Horizon

CRE Provides Strong Returns Over the Long Run

• Long-term outlooks allow investors to focus on meaningful demographic and macro trends, not on daily noise
• Despite recent volatility, most CRE property types have outperformed the stock market over the last 20 years
• S&P returns since 2000 were 416%; Apartment returns came in at 458%, 461% for Retail, and 848% for Industrial

Trends That Will Drive CRE Performance Over Next 20 Years

• Millennials entering family formation age will place greater focus on single-family homes and the suburbs
• Aging Baby Boomers to drive MOB and Seniors Housing demand; will progressively transfer wealth to children
• Interest rate, economic and public policy cycles will constantly transform the real estate landscape

Key Considerations for Long-Term Investments

• Take note of demographic trends, not all property types and locations will benefit equally
• Actively and periodically trade assets to capitalize on interest rate cycles and maximize ROI opportunities
• Adapt to changing behaviors, technology & public policy

*Sources: Marcus & Millichap Research Services, S&P Global, NCREIF

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