Why Institutions Are Under-Allocated to Retail Real Estate

Retail real estate is outperforming — so why are institutions still under-allocated to it? In this episode of What's In Store?, Karly Iacono and Chris Ressa look at retail through an institutional lens: how institutional investors underwrite, price, and allocate capital to retail differently than private buyers, and why retail still lags multifamily and industrial in institutional portfolios. Topics covered:-Why retail sits at just 13% of institutional holdings vs. 29% for multifamily and 34% for industrial (NCREIF data)-How the allocation gap traces back to the 2008 financial crisis, not today's fundamentals-Co-tenancy clauses demystified: what triggers a violation, what remedies apply, and why newer leases increasingly favor landlords-CAM billing and operational complexity — real underwriting concern or overstated risk?-The NOI growth story: why rising rents and tight vacancy make the case for retail right now-Is retail "the next multifamily" from a cap rate and stability standpoint? Whether you're an institutional allocator or a private investor, this episode breaks down why the smart money is starting to take a second look at retail. 🔔 Subscribe to stay informed at the intersection of retail and real estate. #CommercialRealEstate #RetailRealEstate #InstitutionalInvesting #NetLease #CRE #CapitalMarkets #WhatsInStore Warning-IRS Circular 230 Disclosure: CBRE and its affiliates do not provide tax advice and nothing contained herein should be construed to be tax advice. Please be advised that any discussion of U.S. tax matters contained herein is not intended or written to be used, and cannot be used, by the recipient of any Information for the purpose of avoiding U.S. tax-related penalties; and was written to support the promotion or marketing of the transaction or other matters addressed herein. Accordingly, any recipient of this video should seek advice based on your particular circumstances from an independent tax advisor. You also agree that the information herein down not constitute legal or other professional advice and you should obtain legal advice from a qualified attorney licensed in your state. The opinions contained in this video are those of Karly Iacono and may not represent those of CBRE. All content is for educational purposes only. The following content may contain the trade names or trademarks of various third parties, and if so, any such use is solely for illustrative purposes only. All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with, endorsement by, or association of any kind between them and CBRE or Karly Iacono.