Exploring Alternative Investment Opportunities
In recent years, alternative sectors have grown into a significant share of Commercial Real Estate (CRE) investment, totaling $289 billion in transaction volume from 2020 to 2023—a 79% increase. During that time period, 39% of capital raised has included alternatives as target sectors. Despite an overall economic slowdown affecting a wide variety of sectors, alternative assets maintain strong performance indicators, including national-level occupancies over 90%. Compared to traditional CRE asset classes, alternative sectors have shown proven resilience during the last three downturns and stand out as compelling arenas in the ever-evolving landscape of commercial real estate.
In this report, we assess the demand drivers and investment performance of these unique asset classes to unlock the potential we see in the road ahead.