One of the biggest trends over the last few years has been the resurgence of private real estate funds or so-called non-listed REITs. In exchange for a lack of liquidity, investors have been promised better returns and higher dividends. As such, many investors have gobbled up offerings from BlackRock, Brookfield and other investment managers.
Well, investors may want to reconsider.
While private real estate has long been a portfolio allocation in endowments and other institutional portfolios, public REITs might be the better option. According to new data, they simply perform better. And many institutions are taking notice. For investors looking at real estate, public REITs might still provide a better deal.