PENSION REAL ESTATE ASSOCIATION (PREA)

The countdown is on—less than one week until the PREA Fall Conference in Boston. We look forward to reconnecting with members and exploring the ideas shaping the future of institutional real estate. See you there! #PREA #FallConference #InstitutionalRealEstate #Community #Leadership

“From Core to Complexity: The Investment Landscape for Real Estate Gets More Complicated” Featured in the 2025 special real estate issue of The Journal of Portfolio Management, presented by PREA. As the real estate investment landscape continues to evolve, institutional investors are facing a growing set of challenges and opportunities. The lead article of this year’s special issue, written by the editors, offers a comprehensive overview of how the asset class has grown more complex, and what that means for capital allocation, strategy selection, and performance expectations. Key takeaways include: 1.     From Core to Complexity Real estate today represents a dynamic and diverse ecosystem of property types, strategies, and structures. Investors are required to navigate multi-dimensional decisions, often under rapidly changing market conditions. In this environment, research is critical for identifying and capitalizing on new opportunities. 2.     Generating Alpha Isn’t Getting Easier The evidence is clear: delivering consistent outperformance, particularly through development or non-core strategies, is difficult. To maintain target returns, investors are turning to more operationally intensive strategies. Increased operational intensity spans property types, but is particularly pronounced in alternative sectors which show potential to enhance portfolio performance. 3.     The Wrapper Matters How you invest matters as much as where you invest. The structure of the investment vehicle, and how manager incentives align with LP interests, can significantly impact realized returns. Research highlighted in the article reveals that manager decisions and misaligned incentives often lead to suboptimal outcomes. Surprisingly, underperforming managers in private equity real estate continue to raise new funds, challenging traditional assumptions around manager selection and market discipline. This article sets the stage for the entire issue, framing the discussions and analyses that follow. It is essential reading for anyone involved in institutional real estate investing, offering a clear and research-backed view of how the market is shifting and what strategies may define success going forward. PREA members can read the full article at the link in the comments. UNBIASED INSIGHTS. RIGOUROUS RESEARCH. SMARTER INVESTING. Thanks to the editors of the 2025 special real issue, who were instrumental is bringing the issue to life and authored the lead article: Thomas Arnold , Jim Clayton , Frank Fabozzi , Michael Giliberto , Jacques Gordon , Youguo Liang, Greg MacKinnon , and Asieh Mansour.  #RealEstateResearch #PrivateEquityRealEstate #CommercialRealEstate #CRE #RealAssets

The 2025 Private Real Estate in Defined Contribution Survey reports that 88% of DC inflows in 2024 went to dedicated DC vehicles, underscoring their central role in the market. Other highlights from the 2025 Survey: · The typical DC vehicle holds 87% in private real estate, 11% in listed REITs, and 2% in cash equivalents · Nearly 70% of funds have liquidity caps, averaging 9.6%, most commonly rebalanced quarterly · Most firms reported having just one dedicated DC professional, often with backgrounds spanning both real estate and DC The 2025 Survey - released by the DC Real Estate Council (DCREC), NAREIM, NCREIF, and PREA - is now live. Access the full report at PREA.org. https://lnkd.in/gS5cMNFU #DefinedContribution #PrivateRealEstate #PensionFunds

Unbiased insights. Rigorous research. Smarter investing. Since 2003, PREA has proudly sponsored The Journal of Portfolio Management’s Special Real Estate Issue, published every two years. The 2025 edition is now live — continuing our commitment to bringing institutional investors the highest quality, unbiased research on practical real estate investment issues. Authored by leading academics and industry experts, this issue explores topics shaping today’s market, including: ·     Real estate fund performance ·     Alternative property sectors ·     Fee structures ·     Non-core strategies ·     Multifamily rent growth ·     Macro drivers of returns ·     Physical property risk This is essential reading for investors and investment managers seeking the latest evidence-based insights. PREA members can access the full issue via the link in the comments. Thank you to our sponsors of this issue: Capright, Green Street, Hines, IREI-IQ (Institutional Real Estate, Inc.) and TGM #RealEstateResearch #CommercialRealEstate #InstitutionalInvesting #PortfolioManagement #CRE

According to a recent survey released by the DC Real Estate Council (DCREC), NAREIM, NCREIF, and PREA, defined contribution capital in private real estate topped $45bn at year-end 2024 – with $37.5bn in dedicated DC vehicles and $7.8bn in institutional open-end funds. Other highlights from the 2025 Survey: ·  Net positive inflows of $418mn into private real estate during 2024 ·  21 firms participated, representing $1.3 trillion of gross AUM ·  Outflows tracked closely to inflows, with 53% from dedicated DC vehicles and 47% from institutional strategies The results are out. Download the full 2025 Private Real Estate in Defined Contribution Survey at PREA.org. https://lnkd.in/gS5cMNFU #DCInvesting #RealEstate #InstitutionalCapital

PREA extends its thanks and appreciation to Tucker McCrabb (Teacher Retirement System of Texas) and Bradley Petersen (Jamestown LP) for their superb leadership of PREA's Innovation Affinity Group. This group focuses on cutting-edge innovations, disruptive technologies, and ESG factors that affect real estate occupiers, investment managers, and investors. During PREA's 2025 Spring Conference, they toured a major data center campus in Plano. This interactive group will be meeting next at PREA's 2025 Annual Investor Conference, October 22-24 in Boston. If you have not yet registered for the conference, you can do so at this link: https://lnkd.in/ebcbRGwH We look forward to seeing members of the Innovation Affinity Group and all who attend the upcoming conference! For more information on PREA’s Affinity Group Program, click here: https://lnkd.in/dgmv5Myt

19 associations. 1 workforce survey. That is the impact of collaboration in real time. As we enter the final week for submissions for the fourth edition of the Global Real Estate Workforce Survey, we should reflect on how this collaborative effort has helped support the #CRE industry. This Survey is not only a testament to the work being done to support talent recruitment, retention and career development by CRE firms. But also to the work being done by these association to help our industry build, support, and grow its talent base. Because without our people, our teams, we are nothing. The Survey closes this Friday, Sept 19 so we invite you all to get involved and submit data now. Results will be released no later than Jan 15, 2026. To get involved reach out to PREA or Ferguson Partners' Lindsay Wilhusen. Huge thanks go to Ferguson Partners for conducting the survey on behalf of the 19 global CRE associations sponsoring and supporting the research. They include: AFIRE, The American Institute of Architects (AIA), Asia Pacific Real Assets Association (APREA), AREF (The Association of Real Estate Funds), BOMA International, British Property Federation, CFMA, CoreNet Global, CREW Network, EPRA (European Public Real Estate Association), NAIOP, NAREIM, National Council of Real Estate Investment Fiduciaries (NCREIF), OSCRE International, Property Funds Association of Australia, PENSION REAL ESTATE ASSOCIATION (PREA), RICS, REALPAC, and Urban Land Institute. #RealEstate #GlobalCRE #WorkforceInsights #Benchmarking

So what's the next big trend expected in data centers? Is it backing colossal hyperscale data centers that are costing $15bn to develop or smaller, inference data centers, located next to the cities where users are located? For PREA members attending tonight's PREA Near You in Austin, they heard that inference data centers could be the next opportunity emerging from the world of AI. Gathering for a night of conversation and cocktails (just round the corner from the fantastic Rainey St neighborhood) members discussed the challenges of obsolence, power and talent in today's data center markets. And how that could all pivot, dramatically, as the technology evolves towards inference applications. Seen as the "commercialization of large language models", inference data centers are small centers, around 50 to 100 megawatts, located much closer to the users. They will likely be located in primary and key secondary markets - such as Sacramento, Kansas, Pittsburg, Richmond and Austin - and closer to entrepreneurs, members heard. Other highlights of the conversation included: * Traditional real estate managers and investors are nervous and anxious around data centers because it's an operating business unlike any other #CRE sector given its highly technical nature. * New players are focused on creating an exit for data center developments - by creating net lease strategies targeting stabilized data centers. * West Texas has become a hub for new AI data center development owing to the supply of power and talent - two of the most critical factors in any new deal. Members were advised to centralize operations as much as possible in one area owing to power and talent. Too few areas have the talent and expertise, notably electricial workers, to build at scale. And too many cities and regions are running out of power. * Fears we're in an AI bubble equivalent to the dot.com era were rejected, as the counterparty risk was less. The credit quality of tenants in today's data centers is much higher than in the 2000s, with tenants such as Microsoft, Amazon and Meta. The challenge is in the users - and how the technology will evolve in the future. * But fears of obsolesence were also tempered, with members told some firms were actively looking at how to introduce liquid cooling to older air-cooled data centers. Thanks go to George Z., Teacher Retirement System of Texas and Sam Mysock, Pennybacker for leading the discussion in Austin. To the PENSION REAL ESTATE ASSOCIATION (PREA) team for hosting the gathering Amy Laffargue, Reeve Furgueson, Greg MacKinnon and Zoe Hughes. And to all members who attended the Near You.

PREA is pleased to spotlight the excellent work of Wendy Pryce (DigitalBridge Group, Inc.) and JP Rachmaninoff (Tennessee Consolidated Retirement System) leading PREA's Development Affinity Group. This group examines best practices in product design, development financing, and project delivery strategies across property types. During PREA's 2025 Spring Conference, they toured the Victory Park District in Dallas. This interactive group will be meeting next at PREA's 2025 Annual Investor Conference, October 22-24 in Boston. If you have not yet registered for the conference, you can do so at this link: https://lnkd.in/ebcbRGwH We look forward to seeing members of the Development Affinity Group and all who attend the upcoming conference! For more information on PREA’s Affinity Group Program, click here: https://lnkd.in/dgmv5Myt

There are just two weeks left to get involved in the Global Real Estate Workforce Survey, which closes for submissions on Sept 19. This is the most comprehensive workforce benchmarking effort in commercial real estate—tracking demographics, culture, hiring and retention across the globe. For more information on getting involved reach out to PREA or Lindsay Wilhusen at Ferguson Partners. Gain insights to guide workforce and talent strategies and access anonymized industry data. Huge thanks to Ferguson Partners for conducting the survey on behalf of the 19 global CRE associations sponsoring and supporting the research. AFIRE, The American Institute of Architects (AIA), Asia Pacific Real Assets Association (APREA), AREF (The Association of Real Estate Funds), BOMA International, British Property Federation, CFMA, CoreNet Global, CREW Network, EPRA (European Public Real Estate Association), NAIOP, NAREIM, National Council of Real Estate Investment Fiduciaries (NCREIF), OSCRE International, Property Funds Association of Australia, PENSION REAL ESTATE ASSOCIATION (PREA), RICS, REALPAC, and Urban Land Institute. #RealEstate #GlobalCRE #WorkforceInsights #Benchmarking