Apart from real estate funds and REITs, investors, today can also, participate in CRE opportunities directly through tech-enabled platforms that list, manage and sell income-generating assets on an entirely online platform.
Commercial Real Estate (CRE) has been a popular asset class for HNIs and institutional investors around the world. CRE provides monthly cash yields linked to an underlying lease along with a capital appreciation kicker that can together lead to returns in the high teens for investors.
HNIs and institutional investors (like pension funds, sovereign wealth funds, endowments) have traditionally accessed CRE via blind-pool close-ended real estate funds that run for 7-10 years. Retail investors participate to a smaller degree through pooled vehicles like Real Estate Investment Trusts (REITs) that invest in a portfolio of real estate assets.