Commercial Real Estate VS S&P 500
CRE Delivers Durable Returns Over the Long-Run
CRE Outshines Alternatives
Economic volatility and near-term uncertainty are weighing on the broader investment outlook
CRE’s has historically delivered comparably low volatility, and sturdy performance
How CRE Compares to the Stock Market
CRE yields have been relatively stable over the last two decades
While the stock market is down 24% so far this year, CRE has sustained momentum
Favorable Characteristics of CRE
Underlying demand drivers remain sound, providing some insulation against wider economic turbulence
As a hard asset, CRE offers some inflation resistance
Investors favor CRE cash flows and the range of financing options
*Estimate through September 28
Wilshire 5000 Total Market Full Cap Index used for stock market capitalization
Commercial real estate total return includes apartment, retail, office, and industrial properties $1 million and greater; includes non-leveraged weighted average returns on property price appreciation and cumulative cash flow; S&P 500 total return based on price index appreciation and cumulative dividends (dividends not re-invested)
Sources: Marcus & Millichap Research Services, Wilshire Associates, BEA, National Bureau of Economic Research, Moody’s Analytics