PLANSPONSOR - August/September 2019 - 58
Real Estate Has Been a Haven
DB FOCUS
Experts say it may be time to move out
B
ack in the 1980s, real estate was the
original alternative asset for U.S.
defined benefit (DB) plans. It has
remained an important side dish on sponsors'
menus, making up a steady 10% or
so for the plans that rely on it.
" A lot of that demand is driven
by pension plans wanting an asset
that produces income and diversifies
the volatility of equities, " notes Sheila
Ryan, managing director at consultants
Cambridge Associates in Boston.
While real estate as a broad asset
class may be intact, important changes
are influencing its role in a less physical,
more digital global economy. It remains an
investment haven, however: Commercial
property transaction volumes in the U.S.
rose 11% in first half of last year and 13%
globally, says a survey from consultants at
Deloitte. And, among U.S. investors, 13%
plan to increase their commitments over
the next 18 months.
Commercial real estate is traditionally
split into four major categories: office buildings,
multifamily residences, retail stores
and industrial properties. In first quarter
2014, each major group delivered strong
performance coming out of the financial
crisis. Since then, though, industrial properties
have topped the performance charts,
with a cumulative five-year return of 90%,
vs. roughly 50% for apartments, offices
and retail. But over the more recent past-
two years or so-retail has delivered little
more than break-even results.
" Industrial real estate has been
the top-performing sector for the same
reasons retail has seen the least interest, "
says Kevin Faxon, head of real estate
in the Americas for J.P. Morgan Asset
Management in New York City. " Retail
sales are moving to online commerce,
which calls for a warehouse and fulfillment
center rather than a physical store. "
The office sector is evolving as well.
58 PLANSPONSOR.com August - September 2019 Art by Ryan Peltier
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PLANSPONSOR - August/September 2019
Table of Contents for the Digital Edition of PLANSPONSOR - August/September 2019
Reality Check
2019 PLANSPONSOR Target-Date Fund Survey
2019 PLANSPONSOR Participant Survey
2019 PLANSPONSOR National Conference
Opportunities Grow
Real Estate Has Been a Haven
Health Savings Strategies
PLANSPONSOR - August/September 2019 - C1
PLANSPONSOR - August/September 2019 - FC1
PLANSPONSOR - August/September 2019 - FC2
PLANSPONSOR - August/September 2019 - C2
PLANSPONSOR - August/September 2019 - 1
PLANSPONSOR - August/September 2019 - 2
PLANSPONSOR - August/September 2019 - 3
PLANSPONSOR - August/September 2019 - 4
PLANSPONSOR - August/September 2019 - 5
PLANSPONSOR - August/September 2019 - 6
PLANSPONSOR - August/September 2019 - 7
PLANSPONSOR - August/September 2019 - 8
PLANSPONSOR - August/September 2019 - 9
PLANSPONSOR - August/September 2019 - 10
PLANSPONSOR - August/September 2019 - 11
PLANSPONSOR - August/September 2019 - 12
PLANSPONSOR - August/September 2019 - 13
PLANSPONSOR - August/September 2019 - 14
PLANSPONSOR - August/September 2019 - 15
PLANSPONSOR - August/September 2019 - 16
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PLANSPONSOR - August/September 2019 - 18
PLANSPONSOR - August/September 2019 - 19
PLANSPONSOR - August/September 2019 - 20
PLANSPONSOR - August/September 2019 - 21
PLANSPONSOR - August/September 2019 - 22
PLANSPONSOR - August/September 2019 - 23
PLANSPONSOR - August/September 2019 - Reality Check
PLANSPONSOR - August/September 2019 - 25
PLANSPONSOR - August/September 2019 - 26
PLANSPONSOR - August/September 2019 - 27
PLANSPONSOR - August/September 2019 - 28
PLANSPONSOR - August/September 2019 - 29
PLANSPONSOR - August/September 2019 - 2019 PLANSPONSOR Target-Date Fund Survey
PLANSPONSOR - August/September 2019 - 31
PLANSPONSOR - August/September 2019 - 32
PLANSPONSOR - August/September 2019 - 33
PLANSPONSOR - August/September 2019 - 34
PLANSPONSOR - August/September 2019 - 35
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PLANSPONSOR - August/September 2019 - 37
PLANSPONSOR - August/September 2019 - 38
PLANSPONSOR - August/September 2019 - 39
PLANSPONSOR - August/September 2019 - 2019 PLANSPONSOR Participant Survey
PLANSPONSOR - August/September 2019 - 41
PLANSPONSOR - August/September 2019 - 42
PLANSPONSOR - August/September 2019 - 43
PLANSPONSOR - August/September 2019 - 44
PLANSPONSOR - August/September 2019 - 45
PLANSPONSOR - August/September 2019 - 2019 PLANSPONSOR National Conference
PLANSPONSOR - August/September 2019 - 47
PLANSPONSOR - August/September 2019 - 48
PLANSPONSOR - August/September 2019 - 49
PLANSPONSOR - August/September 2019 - 50
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PLANSPONSOR - August/September 2019 - 54
PLANSPONSOR - August/September 2019 - 55
PLANSPONSOR - August/September 2019 - Opportunities Grow
PLANSPONSOR - August/September 2019 - 57
PLANSPONSOR - August/September 2019 - Real Estate Has Been a Haven
PLANSPONSOR - August/September 2019 - 59
PLANSPONSOR - August/September 2019 - Health Savings Strategies
PLANSPONSOR - August/September 2019 - 61
PLANSPONSOR - August/September 2019 - 62
PLANSPONSOR - August/September 2019 - 63
PLANSPONSOR - August/September 2019 - 64
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