Real estate execs choose U.S. over global investments

These days, commercial real estate executives are more confident in the U.S. economy than in global investment prospects, says the 2016 Real Confidence survey. The survey asked C-suite level executives about economic trends, demographics, consumer preferences, and the supply and demand levels of commercial real estate assets.

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Out of a possible 100, the executives polled rated their confidence in the U.S. economy as 63.3, compared to 45.4 for the global economy. They rated the state of the U.S. real estate industry, in particular, as 68.5, and showed better-than average confidence (58.9) that real estate development will increase.

Additionally, executives were asked to allocate a theoretical $1 billion in capital into a mix of real estate investment options that would yield the highest return in 2016. The portfolio they created included private equity, with a 49.3% allocation, followed by REITs with 31.2% of total capital. On the debt side, private debt received a 13.3% allocation, which was more than twice the allocation to public debt of 6.2%.

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The survey was commissioned by Altus Group Limited, in partnership with the National Association of Real Estate Investment Trusts and the National Council of Real Estate Investment Fiduciaries. Respondents represented a variety of real estate funds, private equity firms, listed REITs and debt-driven organizations that have a combined AUM of $700 billion.

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