While top global investors remained active in 2020, they backed off of one key asset class: offices.
The top 100 global investors purchased less in 2020 than they did in 2019, adding $65.4 billion of commercial real estate assets to their portfolios last year, according to Real Capital Analytics. That was a 22% decline from the $83.7 billion they purchased in 2019. Overall these investors added around one-fifth less commercial real estate to their portfolios in 2020. But in some sectors, the change in net additions was more pronounced.
Not surprisingly, the industrial sector led the way for the largest investors. The pace of net investment in the sector only fell 11% compared to 2019, while apartments only dropped 16%, according to RCA. Top investors added $14.5 billion more in apartments to their portfolios than they sold for the year.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
