Public equities have performed phenomenally in recent years with annual returns well above the long-term (three-decade) average.

Public equities have performed phenomenally in recent years with annual returns well above the long-term (three-decade) average. This performance contrasts starkly with other asset classes where returns have hovered around long-term averages. Although total returns for CBRE EA’s investible universe, or private real estate, have only recently matched long-term averages, they are poised for better performance due to improved liquidity, NOI growth and valuations. In fact, CBRE forecasts annual returns for private real estate assets averaging 9% through 2030—on par with historic trends. Improved private real estate performance will likely boost returns for publicly listed real estate assets as well.

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