Pledges to commercial real estate vehicles from U.S. pensions plunged by 50% in 2023 to about $33B, down from $65B the previous year, which was a record.
The tally from commitments to funds and separate accounts last year was the lowest since 2013, when pensions gave less than $28B to CRE and the fourth-lowest total since Ferguson Partners began tracking the sector in 2011, according to a Green Street alert.
The momentum for pledges withered in the second half of 2023, when barely $14B in commitments were made in the third and fourth quarters combined, which is 25% than the quarterly record of nearly $19B in Q3 2022.
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