01.23.2025
New Year, New President…Same Outlook?
From an investor’s perspective, the current environment feels lot like it did twelve months ago: U.S. equity markets returned over…
This chart examines the most recent property type sector breakdown within the NFI-ODCE¹ including apartments, industrial, office, retail and other. While the actual “other” sector only represents 4% of the NFI-ODCE index exposure and typically includes land, parking and self-storage, what’s not that apparent is the “other” allocations within apartments and office.
Over the past several years, NCREIF has been trying to capture and measure “other” subtypes such as student housing and medical office, life sciences, manufactured housing and senior living under a field labeled for usage, but the reporting among ODCE managers has been inconsistent across the board. For example, a manager may report a student housing asset as “apartment” with a classification for garden, high rise or low rise, while at the same time submit the asset under the “usage” field making it unclear how much student housing is represented within the apartments sector.
With that said, managers have started and are likely to increase their exposures to these “other” property types given their unique risk-adjusted return profiles in this mature market cycle. For example, medical office and life science tenants tend to be much stickier and sign longer-term leases compared to traditional office tenants making them a more attractive tenant to have. The question going forward will be whether or not these “other” sectors develop into more mainstream standalone sectors and how much they will represent within the ODCE over the coming years.
¹The NCREIF Fund Index – Open End Diversified Core Equity (“NFI-ODCE”) – is an index of fund-level investment returns reporting on both a historical and current basis.
The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.
The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.
01.23.2025
From an investor’s perspective, the current environment feels lot like it did twelve months ago: U.S. equity markets returned over…
01.22.2025
Earlier this month, wildfires broke out across Los Angeles County, California, destroying more than 12,000 homes, businesses, schools, and other…
01.13.2025
Over the last few years, a cup of coffee has become much more expensive as the costs of the two…
01.06.2025
Large-scale government programs aimed at stabilizing the nation’s economy in the wake of the pandemic, higher interest costs, and an…
01.02.2025
This video is a recording of a live webinar held January 16 by Marquette’s research team analyzing 2024 across the…
12.31.2024
This week’s chart details each calendar year return for the S&P 500 Index dating back to 1928, with consecutive 20%+…
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.
If you have questions or need further information, please contact us directly and we will respond to your inquiry within 24 hours.
Contact Us >