The commercial real estate universe often seems like it’s made up of two worlds—the world of publicly-traded REITs and institutions such as pension funds, where every deal becomes public knowledge almost as soon as it happens, and the world of private commercial real estate investment, where the goings on are more under the radar. But the private markets can be a good indicator of industry trends.
For example, did you know that in the second quarter of this year, there were $8.4 billion in private real estate offerings in the U.S., according to intelligence firm Monetarex, which bases its figures on Form D filings submitted to the Securities and Exchange Commission? Most of the private placement offerings (38.5 percent) came from the commercial property sector, followed by the residential property sector (19.2 percent), other real estate (23.4 percent), REITs (17.0 percent) and the construction sector (1.5 percent).
By far, the biggest segment of security offerings took the form of equities, at $6.8 billion. Pooled investment fund interests were also popular, coming in at $1.1 billion, as was debt, at $600 million.
Monetarex also looked at which states saw the greatest amount of private real estate offerings in the second quarter. To find out where most of the activity is taking place, click through our gallery.