Real estate is a diverse asset class. Real estate can be accessed through public, private, debt and equity investments. Major property types include office, industrial, residential, retail and hotel. Alternative property types such as senior housing, student housing, self-storage and other property types present opportunities for additional diversification. Real estate can be accessed globally.  Investor vehicles include open and closed-end private funds, institutional separate accounts and public securities. 

Institutional investors allocate to real estate to take advantage of the following: 

  • Portfolio Diversification: real estate provides diversification benefits given the low correlation of real estate returns with equities and fixed income.
  • Current Income and Appreciation: a significant portion of real estate return is from current income, but also includes the potential for long term appreciation.
  • Tangible Asset: real estate is a physical asset which can be seen and touched.
  • Inflation Hedge: real estate income can adjust with inflation due to the ability to raise rents in periods when the market is not oversupplied.
  • Leverage: real estate has historically benefited from favorable debt proceeds and interest rates.
  • Investment Vehicles-Alignment of Interests: institutional investors have access to investment vehicles which provide co-investment, incentive fees and other features to align manager-investor interests.

Based on the particular needs of a client, Courtland can tailor a strategy to provide investors with an effective, reasonable approach to investing in real estate. For more information on Real Estate, please contact our Real Estate Team.