JUNE ISSUE: Where in the World …?

Global Fund Raiser Ron Dickerman Evaluates Capital Flows into Real Estate

Ron Dickerman, president & founder of Madison International Realty L.L.C., spoke with CPE editorial director Suzann Silverman about where real estate investment dollars are coming from and where they are being invested today.

Q. What countries’ investors do you find are most interested in commercial real estate right now?

A. Real estate has really become a structural component of almost any institutional real estate portfolio. If you walk into any institutional investor, no matter where they are, and you say, “What is your percentage allocation for real estate?” virtually everybody will have an answer. The other thing going on is real estate is becoming a larger component of what they do. So we’ve been seeing quite a lot of announcements of XYZ Pension Fund is raising their real estate allocation bucket from 6 percent to 9 percent or 8 percent to 12 percent. Those may sound like small movements, but when you’re talking about a $20 billion pension fund, that is a fair amount of capital. So that’s point one.

Read the full article in the June 2014 issue of CPE. Access is free!