{"id":1004717124,"date":"2024-06-13T03:20:38","date_gmt":"2024-06-13T11:20:38","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004717124"},"modified":"2024-06-18T01:55:10","modified_gmt":"2024-06-18T09:55:10","slug":"the-top-alternative-asset-class-on-institutional-investors-radar","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/the-top-alternative-asset-class-on-institutional-investors-radar\/","title":{"rendered":"The Top Alternative Asset Class on Institutional Investors\u2019 Radar"},"content":{"rendered":"\n<p>Life science real estate is one of the leading alternative assets for institutional investors, and has grown from less than 1 percent to over 6 percent of institutional holdings over the past decade.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"899\" height=\"600\" data-attachment-id=\"1004686611\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/alexandria-launches-202m-life-science-campus\/10-19-23-are-woodlands-lab-1005-2\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/10\/Laboratory-space-at-the-Alexandria-Center-for-Advanced-Technologies.jpg\" data-orig-size=\"899,600\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;Alexandria Real Estate Equities,&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;Move-in-ready, cost-effective laboratory space at the Alexandria Center\\u00ae for Advanced Technologies at The Woodlands, Greater Houston. Courtesy of Alexandria Real Estate Equities, Inc.&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;10-19-23-ARE-Woodlands-Lab-1005-2&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"10-19-23-ARE-Woodlands-Lab-1005-2\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;Laboratory space at the Alexandria Center for Advanced Technologies at The Woodlands. Image courtesy of Alexandria Real Estate Equities&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/10\/Laboratory-space-at-the-Alexandria-Center-for-Advanced-Technologies.jpg?w=899\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/10\/Laboratory-space-at-the-Alexandria-Center-for-Advanced-Technologies.jpg?w=899\" alt=\"Laboratory space at the Alexandria Center for Advanced Technologies at The Woodlands\" class=\"wp-image-1004686611\" style=\"width:400px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/10\/Laboratory-space-at-the-Alexandria-Center-for-Advanced-Technologies.jpg 899w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/10\/Laboratory-space-at-the-Alexandria-Center-for-Advanced-Technologies.jpg?resize=300,200 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/10\/Laboratory-space-at-the-Alexandria-Center-for-Advanced-Technologies.jpg?resize=768,513 768w\" sizes=\"auto, (max-width: 899px) 100vw, 899px\" \/><figcaption class=\"wp-element-caption\">Laboratory space at the Alexandria Center for Advanced Technologies at The Woodlands in Houston. <em>Image courtesy of Alexandria Real Estate Equities<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>Its real estate assets now comprise more than one-third of the value of alternatives in institutional real estate portfolios, surpassing all other alternative assets, according to a new CBRE report. <\/p>\n\n\n\n<p>The firm said it\u2019s because the <a href=\"https:\/\/www.commercialsearch.com\/news\/attracting-life-science-tenants-in-core-markets\/\">life science real estate sector<\/a> has achieved better risk-adjusted returns than any other major asset types over the past decade, posting a 12.2 percent average annual total return for institutional holders compared to 7.3 percent for institutional holders across all real estate asset types.<\/p>\n\n\n\n<p>Joint ventures have been an effective way for more investors to increase their capital allocations, according to the report, with 30 percent of life science sales in 2022\u20132023 involving a joint venture buyer.<\/p>\n\n\n\n<p>\u201cInstitutional investors with limited sector experience, leveraged strategic partnerships, such as joint ventures to allocate more to life sciences real estate,\u201d CBRE said.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-cyan-bluish-gray-color has-alpha-channel-opacity has-cyan-bluish-gray-background-color has-background is-style-wide\"\/>\n\n\n\n<p><strong>READ ALSO<\/strong>: <a href=\"https:\/\/www.commercialsearch.com\/news\/office-debt-the-underwater-mountain\/\">Office Debt \u2013 The Underwater Mountain<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-cyan-bluish-gray-color has-alpha-channel-opacity has-cyan-bluish-gray-background-color has-background is-style-wide\"\/>\n\n\n\n<p>\u201cThese partnerships combine an institutional investor&#8217;s capital and financial expertise with an experienced operators\u2019 subject-matter expertise, limiting risk and maximizing returns.\u201d<\/p>\n\n\n\n<p>Despite recent market challenges, life science industry investment remains steady. Venture capital debt and equity offerings <a href=\"https:\/\/www.commercialsearch.com\/news\/vc-investment-in-life-science-sector-is-healthy-but-slowing\/\">have slowed over the past few years<\/a>, although strategic alliances, M&amp;A and grants have largely sustained total capital value.<\/p>\n\n\n\n<p>\u201cOngoing investment should boost tenant demand and confidence among real estate investors,\u201d CBRE said.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-cyan-bluish-gray-color has-alpha-channel-opacity has-cyan-bluish-gray-background-color has-background is-style-wide\"\/>\n\n\n\n<p><strong>READ ALSO<\/strong>: <a href=\"https:\/\/www.commercialsearch.com\/news\/emerging-life-science-markets-stake-a-claim\/\">Emerging Life Science Hubs Stake a Claim<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-cyan-bluish-gray-color has-alpha-channel-opacity has-cyan-bluish-gray-background-color has-background is-style-wide\"\/>\n\n\n\n<p>New interest in this real estate sector should keep the value growing as strong public and social sector support should bolster the life science industry over the next decade.<\/p>\n\n\n\n<p>Meanwhile, the National Institutes of Health anticipates $500 billion in investment from the federal government from 2024 to 2034, according to the Congressional Budget Office.<\/p>\n\n\n\n<p>Helping that so are long-term structural demand drivers such as the aging population, and emerging technology are spurring innovation in the U.S. life science real estate sector.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over the past decade, this sector has achieved better risk-adjusted returns than any other major property type.<\/p>\n","protected":false},"author":3568,"featured_media":1004686611,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21783,23891,21742,21747,51037],"tags":[32789],"class_list":["post-1004717124","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-investment","category-national","category-latest","category-office","category-trends","tag-cbre"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - 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