Why Real Estate?
What are the benefits to having an allocation to commercial real estate within an overall portfolio and why should investors consider such an allocation? This is still a question commonly faced by investment managers, consultants and investors alike. The slide deck accessible at the link below presents a brief outline of standard arguments in favor of a real estate allocation along with illustrative numbers updated on a continuing basis, and with links to more detailed resources available to members on the PREA website.
Common arguments in favor of a real estate allocation include:
- Good returns with relatively low volatility
- Income generation
- Inflation hedge
- Important component of the investable universe