The Real Estate Reel: Institutional allocations and CRE debt

Welcome to 2nd edition of The Real Estate Reel from Cohen & Steers for October. Institutional investors have increased their allocations to real estate, CRE debt delinquency rates are increasing but remain relatively low, and CRE valuations are down more than 16% so far this year. Watch this month’s Real Estate Reel to find out what these data points mean for real estate investing. KEY TAKEAWAYS - Institutional investors increased their allocations to real estate in the first half of 2023, and we see a backdrop where large investors are buying real estate to meet their allocation targets as positive for real estate prices. - Commercial Real Estate (CRE) debt delinquency rates are on the rise but remain relatively low, indicating the headwinds facing CRE debt markets are lower than feared in March. - CRE valuations are down -16.4% year to date as of August, but there are wide variations in how much levered returns are down by sector.