Market
Memos From Howard Marks: What’s Going on in Private Credit?
Private Real Estate
Investing in the Real Estate Recovery
Real estate investing today is about positioning for what comes next.
History has shown that in certain periods, market downturns have been followed by subsequent recoveries and improved performance. The prior two downturns (in the 1990s and 2000s) were succeeded by sustained periods of positive returns, which averaged approximately 10% annually.*
We believe we may be in the early phase of a new real estate cycle, which has historically been associated with positive long-term outcomes.
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*Past performance does not guarantee future results. Based on certain market observations. The periods referenced are based on selected historical downturns and may not be representative of all market cycles. Indexes are unmanaged, and investors cannot invest directly invest in an index. Private real estate represented by NCREIF NPI and NFI-ODCE U.S. indexes, Q3 2024–Q4 2025.
Source: National Council of Real Estate Investment Fiduciaries. As of December 31, 2025.
Three Factors Currently Supporting Real Estate
Commercial real estate is showing signs of stabilization this year as financing conditions improve, transaction activity recovers and valuations remain compelling. These three factors are supporting optimism across the market today.
Easing Credit Conditions
Easing credit conditions are reviving deal activity
As debt costs have eased and lending markets have reopened, institutional capital has returned to real estate markets, supporting a broad-based recovery in transaction activity and renewed investor confidence.
Global Transaction Volumes
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Historical analysis does not guarantee future results.
Source: Jones Lang LaSalle. As of Q3 2025.
Stabilizing Rates
Stabilizing Rates May Present Opportunities
As interest rates stabilize and financing conditions improve, average cap rates remain well above prior-cycle levels—creating higher entry yields.
Real Estate Average Cap Rates
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Past performance does not guarantee future results. Represents all real estate sectors.
Source: Green Street. As of March 2026.
Relative Value
Real Estate Has Offered Attractive Relative Value
While pricing across real estate markets has begun to stabilize, valuations remain below prior peaks, creating opportunities relative to equities.
Private Real Estate vs. U.S. Equities Price
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Past performance does not guarantee future results. U.S. equities represented by S&P 500 Index; private real estate represented by NCREIF NPI. Indexes are unmanaged, and investors cannot directly invest in an index. Private real estate and public equities have different liquidity, valuation methodologies, and risk characteristics, and therefore may not be directly comparable.
Source: Green Street, S&P Global. As of March 31, 2026.
The Brookfield Advantage
Real estate may provide upside potential for investors, but fully capturing this opportunity requires a manager with scale, a strong local presence and deep operational expertise.
As one of the world’s largest real estate investors, Brookfield draws on its global scale, differentiated market insights and deep owner-operator expertise to invest across sectors, geographies and market cycles. We believe our integrated approach helps support our investment decisions and provide risk-management value to investors.
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Global Scale
$277B AUM
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Differentiated Insights
650 On-the-Ground Real Estate Specialists
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Owner and Operator
24K Operating Employees
An Industry-Acclaimed Platform
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Private Equity Real Estate (PERE) Awards 2025
Firm of the Year (Global)
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PERE Awards 2025
Capital Raise of the Year (Global)
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PERE Awards 2025
Multifamily Lender of the Year
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PERE Awards 2025
Logistics Investor of the Year (Asia-Pacific)
確かな実績を持つプラットフォーム
2025年プライベート・エクイティ・リアル・エステート（PERE）グローバル・アワードは、PEIグループによって授与されるもので、2024年11月7日に終了する12か月間の活動を対象としています。受賞者は、業界からの提出資料および独自の編集リサーチに基づき、定性的・定量的基準を踏まえた主観的評価により、PEIグループの社内編集パネルによって選定されています。これらの賞はパフォーマンスのみに基づくものではなく、将来の成果を示唆または保証するものではありません。本資料は広告または募集を目的としたものではありません。これらの賞に関連して、ブルックフィールドは一切の対価を支払っていません。詳細については、PEIグループが提供する以下のリンクをご参照ください：2025 PERE Global Awards、2025 PERE Credit Awards。
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プライベート・エクイティ・リアル・エステート（PERE）アワード 2025年
ファーム・オブ・ザ・イヤー（グローバル）
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PERE アワード 2025年
キャピタルレイズ・オブ・ザ・イヤー（グローバル）
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PERE アワード 2025年
ロジスティクス・インベスター・オブ・ザ・イヤー（アジア太平洋）
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PERE クレジット・アワード 2025年
マルチファミリー・レンダー・オブ・ザ・イヤー
2025 PERE Global Awards are presented by PEI Group, covering activity during the previous 12 months from November 7, 2025, with winners selected by PEI Group’s internal editorial panel based on a subjective assessment informed by industry submissions and independent editorial research across qualitative and quantitative criteria; awards are not based solely on performance and are not indicative of future results. Not an advertisement or offering. No compensation was provided by Brookfield in connection with these awards. For further details, please visit the following links provided by PEI Group: 2025 PERE Global Awards, 2025 PERE Credit Awards.
Potential Benefits of Investing in Private Real Estate
Private real estate is an established asset class that we believe can help provide diversification within an overall portfolio. Its unique characteristics have long made it a common allocation for institutional investors. The historical data in the following charts show how private real estate can enhance income generation, risk-adjusted returns and inflation protection.
Income Generation
Private real estate has historically delivered higher income than bonds, along with capital appreciation.
20-Year Annualized Returns
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Past performance does not guarantee future results. These results are hypothetical and for illustrative purposes only, are based on assumptions, and do not reflect actual trading or the performance of any investor. Actual results may differ materially. U.S. equities represented by S&P 500 Index, private U.S. real estate represented by NCREIF Fund Index – Open End Diversified Core Equity (NFI-ODCE), international equities represented by MSCI EAFE Index and U.S. fixed income represented by Bloomberg U.S. Aggregate Bond Index. An investor cannot invest in an index.
Source: Bloomberg, MSCI, National Council of Real Estate Investment Fiduciaries, S&P. As of December 31, 2025.
Enhanced Risk/Return
Adding private real estate to a traditional portfolio has historically increased returns and lowered risk.
Returns and Risk (Trailing 20 Years)
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Past performance does not guarantee future results. These results are hypothetical and for illustrative purposes only, are based on assumptions, and do not reflect actual trading or the performance of any investor. Actual results may differ materially. These comparisons are based on historical data across selected time periods and may not reflect future performance or all market environments. Asset class characteristics and risk differ and may not be directly comparable. Risk measured by the standard deviation of quarterly returns. Standard deviation measures the degree to which an investment's return varies from its mean return. U.S. equities represented by S&P 500 Index, international equities represented by MSCI EAFE Index, U.S. fixed income represented by Bloomberg U.S. Aggregate Index and private U.S. real estate represented by NCREIF Fund Index – Open End Diversified Core Equity (NFI-ODCE). An investor cannot invest in an index.
Source: Bloomberg, MSCI, National Council of Real Estate Investment Fiduciaries and S&P. As of December 31, 2005– December 31, 2025.
A Hedge Against Inflation
Private real estate has generated positive returns amid high inflation.
Average Quarterly Returns When U.S. Consumer Inflation Was Higher Than Average
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Past performance does not guarantee future results. These comparisons are based on historical data across selected time periods and may not reflect future performance or all market environments. Asset class characteristics and risk differ and may not be directly comparable. Higher-than-average inflation measured from when the year-over-year U.S. Consumer Price Index exceeded 2.5%. During those periods, we examined the average returns of U.S. equities, represented by the S&P 500 Index, private U.S. real estate represented by NFI-ODCE and U.S. fixed income represented by the Bloomberg US Aggregate Bond Index. An investor cannot invest in an index.
Source: Bloomberg, National Council of Real Estate Investment Fiduciaries and S&P. As of December 31, 2005–December 31, 2025.
不動産デットの有効性
Important Disclosures
Real estate investing is subject to some degree of risk. The value of an investment will fluctuate over time, and an investor may gain or lose money, or the entire investment. Past performance is no guarantee of future results. Real estate debt is sensitive to property-market conditions, borrower performance and interest-rate changes; adverse developments can cause values to fall and returns to trail traditional fixed-income securities. Income distributions are not guaranteed and subject to change.
Certain information herein includes selected historical data and examples that may not be representative of all investments or market conditions. Comparisons across asset classes are provided for illustrative purposes only and may not reflect the experience of any investor.
Diversification does not guarantee a profit or protect against loss.
The information contained herein is for educational and informational purposes only and does not constitute, and should not be construed as, an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This material discusses broad market, industry or sector trends, or other general economic or market conditions, and it is being provided on a confidential basis.
It is not intended to provide an overview of the terms applicable to any products sponsored by Brookfield Corporation and its affiliates (together, “Brookfield”). Information and views are subject to change without notice. Some of the information provided herein has been prepared based on Brookfield’s internal research, and certain information is based on various assumptions made by Brookfield, any of which may prove to be incorrect. Brookfield may not have verified (and disclaims any obligation to verify) the accuracy or completeness of any information included herein, including information that has been provided by third parties, and you cannot rely on Brookfield as having verified any of the information. The information provided herein reflects Brookfield’s perspectives and beliefs as of the date of this material.
The opinions expressed herein are the current opinions of Brookfield, including its subsidiaries and affiliates, and are subject to change without notice. Brookfield, including its subsidiaries and affiliates, assumes no responsibility to update such information or to notify clients of any changes. Any outlooks, forecasts or portfolio weightings presented herein are as of the date appearing on this material only and are also subject to change without notice. Past performance is not indicative of future performance, and the value of investments and the income derived from those investments can fluctuate.
Forward-Looking Statements
The information herein contains, includes or is based on forward-looking statements within the meaning of the federal securities laws, specifically Section 21E of the Securities Exchange Act of 1934, as amended, and Canadian securities laws. Forward-looking statements include all statements, other than statements of historical fact, that address future activities, events or developments, including, without limitation, business or investment strategy or measures to implement strategy, competitive strengths, goals, expansion and growth of our business, plans, prospects and references to our future success. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe” and other similar words are intended to identify these forward-looking statements. Forward-looking statements can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining our actual future results or outcomes. Consequently, no forward-looking statement can be guaranteed. Our actual results or outcomes may vary materially. Given these uncertainties, you should not place undue reliance on these forward-looking statements. BPW-936881
