Unlocking Alternatives: Investing Beyond the Major CRE Asset Type

BUYER TYPES FOR ALTERNATIVE ASSETS Increasing private capital involvement has been driving volume growth in alternatives

• For the past decade, private capital has been the dominant buyer across most alternative sectors. However, sectors with unique operational moats and proven pandemic resilience (e.g., data centers, life sciences) have driven greater institutional interest. Recently, as capital has grown more cautious due to overall economic factors, private capital has once again become the predominant buyer type as they seek opportunity a slow transaction landscape. • Institutional involvement fell to a low of 10% in 2019. Since then, there has been a substantial shift to reallocate investments away from office. Alternatives are among those poised to be the beneficiaries of these reallocations. • In certain alternative sectors, namely self storage, healthcare and R&D/life science, REITs continue to be key buyers. Often these were once early movers that aggregated portfolios and have maintained strong growth through to today.

Alternatives Buyer Type Breakdown Q3 2023

Alternatives % Transaction Volume Share

0% 50% 100%

1.2%

Tech/Data Center

Medical Office

11%

70%

6%

0.3%

Cold Storage

Mobile/Manufactured Housing

88%

2%

0.6%

Age-Restricted

R&D/Life Sciences

3%

66%

12%

2.7%

Student Housing

Self Storage

17%

80%

2%

1.9%

Self Storage

Student Housing

95%

5%

2.1%

R&D/Life Sciences

Age-Restricted

80%

Mobile/Manufactured Housing

0.8%

Cold Storage

90%

2.6%

Medical Office

Tech/Data Center

100%

0.0% 1.0% 2.0% 3.0%

Institutional/Fund Private Listed/REIT

Cross-Border

2022 2021 Avg '17-'19

User/Other

Source: RCA, Cushman & Wakefield Research

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