Doug Weill, founder and co-managing partner at Hodes Weill and Associates, joined the REIT Report podcast to discuss findings from the 2025 Institutional Real Estate Allocations Monitor.
Weill noted that institutions decreased target allocations by 10 basis points this year, although allocations are expected to increase by about the same amount in the coming 12 months. The survey showed market conviction “tick up a bit,” he added. “That to us indicates that institutions are increasingly ready to deploy capital and are viewing the next couple of years as potentially good vintages, which is what we hear over and over from institutions.”
Weill also highlighted that about one in three institutions are actively allocating to REITs. “When we ask them about what it is about REITs that is most appealing, the two main or top objectives are liquidity and a proxy for core,” he noted.
Larger institutions are more actively allocating to REITs, according to Weill, using dedicated in-house teams.
“Increasingly we're seeing institutions look at public and private means of investing in real estate as complementary and REITs again as a good way to access core and core-plus strategies and also certain sectors that may be hard to access on a private basis,” Weill said.
Hodes Weill publishes the Institutional Real Estate Allocations Monitor in conjunction with Cornell University's Baker Program in Real Estate.