Articles from Hodes Weill & Associates

For the first time since the survey’s inception in 2013, institutional target allocations to real estate have declined, dropping 10 basis points to 10.7% in 2025, finds the 13th annual Institutional Real Estate Allocations Monitor, published by Hodes Weill & Associates and Cornell University’s Baker Program in Real Estate. Despite this recent reduction, institutions expect to increase target allocations by 10 basis points in 2026, led by EMEA-based institutions that are reporting the highest conviction in the asset class this year.

The third annual Institutional Infrastructure Allocations Monitor, released today by Hodes Weill & Associates and Cornell University’s Program in Infrastructure Policy, revealed continued growth in institutional allocations to infrastructure, even as geopolitical concerns reshape investment strategies and geographic targets. Target allocations rose to 5.9% in 2025, representing a 40-basis-point increase over the past 12 months and an 80-basis-point increase since 2023, highlighting infrastructure’s expanding role in institutional portfolios. This growth represents a 7.1% increase in capital allocations year-over-year, implying the potential for an additional US$43 billion of investment (from survey participants).

After remaining flat for two consecutive years, institutional target allocations are expected to decrease in 2025, finds the 12th annual Institutional Real Estate Allocations Monitor, published by Hodes Weill & Associates and Cornell University’s Baker Program in Real Estate. Target allocations held at 10.8% in 2024, with institutions expecting to lower targets by an average of 10 basis points next year in favor of other allocations including private credit and infrastructure.

Despite institutions’ under-allocation to infrastructure, 2023 was the most challenging year for private infrastructure fundraising since 2015, according to the second annual Institutional Infrastructure Allocations Monitor released today by Hodes Weill & Associates and Cornell University’s Program in Infrastructure Policy. However, in light of growing target allocations to infrastructure and positive investor sentiment, the pace of annual investments is expected to accelerate over the medium-term. Globally, institutions are under-invested in infrastructure by an average of 123 basis points versus target allocations. Over the past 12 months, the gap between actual and target allocations narrowed, as actual allocations grew faster than targets among repeat respondents.

Amidst the backdrop of a tumultuous economy, rising interest rates and frozen transaction markets, institutional target allocations to real estate have remained flat for the first time in 10 years, at 10.8%, finds the 11th annual Institutional Real Estate Allocations Monitor, published by Hodes Weill & Associates and Cornell University’s Baker Program in Real Estate. Institutions have chosen to spend 2023 focused on managing their existing portfolios in an environment in which investors are waiting for valuations to find a bottom. While the survey finds that institutions expect to hold target allocations steady in 2024, investors believe the next few years will prove to be good vintage years to capitalize on expected dislocation and distress.

While institutions have become increasingly cautious over the past several quarters in the face of heightened market volatility and denominator effect concerns, sentiment towards private infrastructure remains relatively strong and institutions are still trailing their infrastructure target allocations, according to the inaugural Institutional Infrastructure Allocations Monitor released today by Hodes Weill & Associates and Cornell University’s Program in Infrastructure Policy. On average, global institutions are under-allocated to the asset class by 98 basis points relative to their targets, supporting expectations of increased capital flows into the sector.

Institutions continue to increase target allocations to real estate, with the expectation that attractive buying opportunities will emerge over the next several years – finds the 10th annual Institutional Real Estate Allocations Monitor, published by Hodes Weill & Associates and Cornell University’s Baker Program in Real Estate. This comes despite the fact that economic turmoil, geopolitical risk, and rising inflation and interest rates have contributed to the first decline in institutional investor confidence in real estate in five years. Decreased conviction coupled with portfolio overallocation has resulted in a slowdown of deployment pacing. But while today’s investment environment is challenging, institutions are expecting to increase allocations to real estate by 30 basis points to 11.1% in 2023.

Hodes Weill & Associates (Hodes Weill), a global capital advisory firm specializing in the real estate and real assets funds management industry, today announced that it has expanded its European operations to focus on the growth of institutional capital allocations in the region. Hodes Weill has hired Barbara Maltha as Principal from CBRE Capital Advisors, where she covered the European institutional market with responsibility for capital raising, fund structuring and advisory assignments. Maltha will lead the firm’s recently opened office in Amsterdam and will play an integral role in the growth of Hodes Weill’s broader European platform by deepening its institutional coverage and business development activities.

Despite decreased returns in 2020, institutional investor confidence in commercial real estate remains strong, reaching a nine-year high in 2021, according to Hodes Weill & Associates and Cornell University’s Baker Program in Real Estate’s ninth annual Institutional Real Estate Allocations Monitor. Pensions, sovereign wealth funds, insurance companies and other institutions continue to look to real estate as an important portfolio diversifier, hedge against inflation and source of stable income.

Hodes Weill & Associates (Hodes Weill), a global advisory firm focused on the real estate and real assets investment and funds management industry, today announced that Michael Mendelsohn has joined the firm as Principal. In this role, he is responsible for covering institutional investors and consultants in North America, and will work closely with Partner Matt Hershey to grow the firm’s industry-leading global distribution platform.