Emerging from the pandemic

As the country and economy begin to put the pandemic in the rearview mirror, the outlook for commercial real estate remains murky. While there is no shortage of opinions, outlooks, and forecasts – the distinct nature of the pandemic-induced crisis and robustness of the response that followed has left
many with more questions than explanations – the path forward remains uncertain.

In an effort to glean insights about how the “big money” market participants (“Big Money”) are positioned now and for the years ahead, this report looks at 35 major institutional real estate owners and their recent portfolio activity, to see how their portfolios have evolved leading up to and through the pandemic.

Key Findings

  • While most of the Big Money portfolios are diversified across property types, office is the largest concentrated position across Big Money portfolios.
  • Big Money investment activity, as measured by properties acquired and total dollar volume, was down 34% in 2020 compared with 2019.
  • Looking at the Big Money investment activity that did occur in 2020, the Big Money allocations did not deviate significantly from their pre-pandemic investment allocations.
  • In 2020, Big Money allocated a proportionally larger amount of investment dollars to office properties in major markets.
  • Despite the significant disruption caused by the pandemic to Big Money investment activity, Big Money showed interest in South and Western markets
  • Contrary to much of the recent media buzz around a great urban exodus, Big Money continued to make investments in many of the largest population centers.

This report and the Big Money analysis was made possible by Reonomy’s recently launched Ownership Portfolios, the first in a series of portfolio-focused offerings.

Download the report to learn more.