Unlocking Alternatives: Investing Beyond the Major CRE Asset Type

ALTERNATIVE SECTORS TRANSACTION VOLUMES OVER TIME While total volume has slowed ($15.7B YTD ‘23 vs $41.8B YTD ‘22), alternatives remain at a resilient 10% of total volume—comparable to historical average

• Combined, alternatives represent a comparable size to that of the major asset types—historically hovering near retail but now surpassing both office and retail in total size. • While having fallen from record peaks in 2021 and 2022, the overall alternatives sector has remained relatively resilient to limited debt availability and cautious capital over the past year. • As a percentage of total transaction volume, alternatives have ranged from 9%-17% since 2020. Previously, alternatives made up 6%- 15% between 2017 to 2019. • The largest alternative sectors are in the residential space with student and senior / age-restricted routinely topping the list. • In recent years, self storage, R&D/life sciences and healthcare / MOB have seen significant growth.

Quarterly Transaction Volume by Asset Type

-$10 $10 $30 $50 $70 $90 $110 $130 $150 $170

Billions

Office

Apartment

Industrial

Retail

Alternatives

Quarterly Alternatives Transaction Volume and % Volume Share

$0 $20 $40 $60

5.0% 10.0% 15.0% 20.0%

Billions

% of Transaction Volume

‘

'17

'18

'19

'20

'21

'22

23

Medical Office

Mobile/Manufactured Housing

R&D

Self Storage

Student Housing

Tech/Data Center

(RHS)

Cold Storage

Age-Restricted

Alternatives as % Total CRE Transaction Volume

Source: Single + Portfolio trades on MSCI / Real Capital Analytics, Cushman & Wakefield Research

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