New Report Quantifies U.S. Commercial Real Estate Universe, Including the Institutional Portion

December 05, 2024

Note to visitors: CRELIX tracks the size of the commercial and multifamily real estate market. You can learn more on the “Our Market: Overview” page of this website. The report referenced below is from a highly credible industry source, so we’re pleased to share it here.

Clarion Partners, a leading real estate investment manager, has partnered with Rosen Consulting Group, an independent real estate economics consulting firm, to explore the universe of investable commercial real estate (CRE) in the U.S.

Key findings of the report include:

The overall U.S. CRE universe has grown to $26.8 trillion, with the institutional-quality portion representing $11.7 trillion, or 44%.
Of the total investable universe, approximately $17 trillion is in “traditional” property sectors (office, retail, multifamily, hospitality and industrial), while $10 trillion is in alternative uses (data centers, self-storage, senior housing, life science, cold storage, etc.).
Altogether, alternatives make up $3.6 trillion, or 31%, of the institutional-quality universe. Residential alternatives (single-family rentals, student housing, age-restricted housing and manufactured housing) are valued at $2 trillion, or 17%, of the institutional universe.

According to Clarion Partners and Rosen Consulting, viewing the CRE landscape through the lens of this new data helps institutional investors to better:

Assess the size and depth of individual property sectors
Quantify scale in emergent asset classes
Manage risk by enhancing diversification
Map for future growth opportunities, and more

The full report is available on the Clarion Partners website.