Market experts say nuance in CRE shows bright future for asset class

The commercial real estate (CRE) market is underperforming in the US, and has seen a correction in Europe; what is the future?

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Office or warehouse? Periphery or core? Modern or old? When it comes to CRE, nuance is the name of the game.

Commercial real estate (CRE) as an investment asset class is facing strong headwinds. However, some in the market say the nuances of the asset class mean there are still good deals to be had.

The Financial Times recently reported that asset managers are cutting their real estate holdings amid the market downturn.

This matters to insurers as real estate holdings make up swathes of many portfolios.

Mike Bessell, Investment Strategist at Invesco, said that different market forces were at play for the reasons behind any reported cut to holdings.

“A lot more of what we are seeing I would put in the category of broader portfolio restructuring and rebalancing," he told Insurance Investor.

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