Episode 347: Investors Should Prioritize Listed Real Estate Market Over Private: LaSalle
b"
Investors looking to allocate to real estate today should consider the listed market first, with REITs in particular priced to deliver annual returns in the high single digit range for the next several years, says Lisa Kaufman, head of global securities at LaSalle.
\\u201cWe see public real estate as unequivocally more attractive than private real estate today,\\u201d Kaufman told Nareit\\u2019s REIT Report podcast.
Kaufman said the REIT market has been \\u201creally very rational\\u201d through the recent period of tightening financial conditions, \\u201cand financial conditions do remain in the driver's seat.\\u201d She noted that REIT returns \\u201care attractive and we have a higher level of conviction in our outlook today just given the material tightening of financial conditions and the repricing that's already occurred in the REIT sector.\\u201d
REITs are underrepresented today in institutional real estate portfolios, Kaufman said. Listed real estate represents around 45% of institutional quality real estate worldwide, but only about 20% of investors\\u2019 real estate allocation. REITs have the additional benefit of being disproportionately weighted toward non-traditional property types like self-storage, health care, and data centers, she said.