Strategic Growth & Financial Overview
CRE is a Growing Asset Class for Newmark's Institutional Clients
10-Year Annualized Total Returns¹ of Private CRE
are Attractive on an Absolute and Relative Basis
Allocations to CRE at All-time Highs²
Risk-Adjusted Returns
Quality of Return (Sharpe Ratio)
Private CRE, 1.77
Bonds, 0.41
CPI, 0.21
Public CRE, 0.55
Stocks, 0.92
11.0%
9.6%
5.6%
4.5%
3.7%
2.1%
1980
1990
2000
2010
2015
2022E
CRE Dry Powder at or Near All-time Highs³
Rest of World
North America
$409B
$155.0
$235B
$157B
$97.5
$74.7
$253.5
0%
2%
4%
6%
8%
10%
12%
14%
16%
10yr CAGR
$20B
2000
$137.6
$82.6
2010
2015
Jul-22
Institutions are increasingly investing in Commercial Real Estate, with double-digit CAGRs in global real estate assets under management over the past 5-, 10-,
and 15-year periods².
This creates long-term tailwinds for nearly all CRE services.
1. Trailing annualized 10-year total returns reflect the period ended December 31, 2021. The indices included are the NCREIF Property Index, the Bloomberg US Aggregate Bond Index, the S&P 500, and the U.S.-focused Dow Jones Equity All REIT Index. Source: Bloomberg.
2. Allocations to CRE are per Cornell University - Hodes Weill & Associates, December 2021 (latest available). AUM data for 2005-2021 is from the "ANREV/INREV/NCREIF Fund Manager Survey 2022".
3. Source: Preqin.
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