Current Inflation-Adjusted Institutional Real Estate Values are Back to Near GFC Levels

After a substantial value decline in U.S. institutional real estate due to rising interest rates, capital values have now reached 2010 levels, after adjusting for inflation. Based on returns in 2010 and the years following, it would have been one of the best times ever to invest in the asset class. Additionally, current inflation-adjusted values are 15% lower than in 1994.

Inflation Adjusted (=100 in Q4 1994)

Source: Original chart courtesy of AEW Research and Strategy, U.S. Economic and Property Market Perspective, Q3 2024

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