The State of Real Estate: An Era of Normalization?

August 15, 2017 | Jeremy Zirin, CAIA, Senior Research Analyst, Real Assets

Core real estate investments have flourished since the financial crisis. Since delivering six consecutive double-digit annual returns through 2015, the NCREIF Open-end Diversified Core Equity Index (NFI-ODCE) returned a positive 8.8% in 2016 and a positive 3.5% YTD through June 2017. While overall returns are moderating, the relatively lower high single-digit returns remain consistent with our longer term expectations for the asset class and real estate remains an attractive investment relative to other assets classes. Investors may be wondering how much longer the real estate cycle can continue and if it is time to pull back on their allocations. In this newsletter, we address these questions by examining critical drivers of the real estate market, including performance, valuation, leverage, income, and capital flows.

Download PDF

Jeremy Zirin, CAIA
Senior Research Analyst, Real Assets

Get to Know Jeremy

Related Content


Healthcare Organizations’ Top 3 Investment Concerns for Balance Sheet Assets

Historically, healthcare organizations have covered their cost of debt by investing in a conservative mix of fixed income securities. However,…


Don’t You Know, We’re Talking About An Evolution? Addressing The New Challenges Facing The Diverse Manager Community

In recent years, some proactive and thoughtful pieces have spurred constructive dialogue within the investment consulting and plan sponsor communities…


The Fiduciary Duties of 457(b) Defined Contribution Plan Sponsors

This article offers governance best practices for public sector plan sponsors to consider. The fiduciary duties imposed on state and…


A Roadmap for Defined Contribution Plan Sponsors

Defined Contribution (DC) plan assets continue to grow and now total $7 trillion, with over 90 million Americans maintaining a…


How Currency Risk Can Impact Portfolios

International investment strategies such as emerging markets debt and unconstrained fixed income have seen significant volatility over the last few…


What Will Drive Real Estate Returns in the Coming Years?

Core real estate investments have flourished since the financial crisis. The NCREIF Property Index (NPI), since returning six consecutive double-digit…

More articles

Subscribe to Research Email Alerts

Research Email Alert Subscription

Research alerts keep you updated on our latest research publications. Simply enter your contact information, choose the research alerts you would like to receive and click Subscribe. Alerts will be sent as research is published.

We respect your privacy. We will never share or sell your information.

Thank You

We appreciate your interest in Marquette Associates.

If you have questions or need further information, please contact us directly and we will respond to your inquiry within 24 hours.

Contact Us >