More Money is Coming
Optimism is still the name of the game. The latest survey from Investment Program Association found that 83% of high-net worth investors believe commercial real estate will outperform or equal the equity markets’ return over the next five years. Non-listed REITs are really feeling the love; more investors than ever are familiar with them, 80% rate the vehicle as positive or neutral, and 45% say they plan to include non-listed REITs in their future portfolio. IPA prez Kevin Hogan says non-listed REITs are particularly favorable for their annual distributions (usually between 4% and 6%) and tax status. 2013 saw nearly $20B in total sales of non-listed REITs, a record.