MSCI reports that global commercial property reached $13.5 trillion in 2025, but target allocations to real estate have declined for the first time in 13 years, signaling a shift in how institutional investors view real estate's role in their portfolios.
This matters because it highlights the need for clearer strategic asset allocation and performance justification, especially as real estate competes with other asset classes like infrastructure and private credit. Investors must now focus more on individual asset selection and evidence-based investment strategies to maintain portfolio relevance.
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