CRE Delivers Durable Returns Over the Long-Run
CRE Outshines Alternatives
- Economic volatility and near-term uncertainty are weighing on the broader investment outlook
- CRE’s has historically delivered comparably low volatility, and sturdy performance
How CRE Compares to the Stock Market
- CRE yields have been relatively stable over the last two decades
- While the stock market is down 24% so far this year, CRE has sustained momentum
Favorable Characteristics of CRE
- Underlying demand drivers remain sound, providing some insulation against wider economic turbulence
- As a hard asset, CRE offers some inflation resistance
- Investors favor CRE cash flows and the range of financing options
*Estimate through September 28
Wilshire 5000 Total Market Full Cap Index used for stock market capitalization
Commercial real estate total return includes apartment, retail, office, and industrial properties $1 million and greater; includes non-leveraged weighted average returns on property price appreciation and cumulative cash flow; S&P 500 total return based on price index appreciation and cumulative dividends (dividends not re-invested)
Sources: Marcus & Millichap Research Services, Wilshire Associates, BEA, National Bureau of Economic Research, Moody’s Analytics
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