A criticism when discussing the risk-adjusted returns of direct real estate, as measured by appraisal based indexes such as the NCREIF NPI, is that volatility is understated because appraisal based valuations "smooth" volatility due to their backward looking nature.

Interest rate policy has buoyed many types of assets over the recent past, including property. Prices of apartments, like all other property types, has been a beneficiary of low interest rates and given that we're near a long term floor in rates, it's sensible to be concerned that a reversal of that trend will drag prices back down. How far along is the party? Is the clock nearing 12 when we'll return to pumpkins and mice? Probably not.

Since the inception of the United States government, citizens have been granted (and encouraged) to exercise the right to own real estate. In the 1800’s, the Homestead Acts were designed to encourage people to take ownership and care for the land that represented the United States of America.

Both publicly traded REITs and private real estate offerings can present valuable opportunities for an investor looking for real estate exposure. A logical question a client may ask is "what's the difference between investing in REITs and direct real estate"? There are key differences and portfolio implications that should be understood. Here are the top three: