Market
Memos from Howard Marks: Is it a Bubble?
A Diverse and Evolving Investment Opportunity
Private Real Estate
In today’s uncertain market, private real estate stands out for its resilience.
Unlike public markets, which can be highly sensitive to headlines and sentiment, private real estate is anchored in fundamentals such as rental income, occupancy rates and long-term demand drivers.
Private real estate, once the domain of institutional investors, is now increasingly accessible to individuals through modern investment platforms. Historically, high capital requirements, long holding periods and complex property management made private real estate investment impractical for most investors. Today, those barriers are eroding, allowing access to the benefits that have long made private real estate a core institutional allocation: diversification, inflation protection and reduced volatility.
Potential Benefits of Investing in Private Real Estate
Real estate, with its unique characteristics, is an established asset class that we believe is an essential component in a well-diversified portfolio. In fact, institutional investors have long appreciated the benefits of allocating to private real estate, especially during periods of public market volatility and high inflation.
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. As of December 31, 2024. 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. Indexes do not reflect the impact of transaction costs, management fees and other investment-entity fees and expenses, or the costs associated with raising capital or being a public company, which lower returns. The NFI-ODCE is a capitalization-weighted, gross-of-fees, time-weighted return index that measures the performance of the largest open-ended commingled funds pursuing a core real estate investment strategy.
Source: Bloomberg, MSCI, National Council of Real Estate Investment Fiduciaries, S&P.
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. Display shows total return and risk of a hypothetical portfolio as measured by the standard deviation of quarterly returns for 20 years ending as of December 31, 2024. This hypothetical example is for illustrative purposes only and does not represent actual investment results. The growth shown for each maturity segment is based on assumptions that may not materialize. Longer-term allocations shown with higher growth potential also typically involve higher volatility and risk of principal loss. Actual investment performance will fluctuate, and there is risk that investments may lose value. Different market conditions could result in growth that is significantly lower than illustrated or even negative returns. 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. Indexes do not reflect the impact of transaction costs, management fees and other investment-entity fees and expenses, or the costs associated with raising capital or being a public company, which lower returns.
Source: Bloomberg, MSCI, National Council of Real Estate Investment Fiduciaries, S&P.
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. December 31, 2004–December 31, 2024.
* 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 (as measured by the S&P 500 Index), private U.S. real estate (as measured by the NFI-ODCE) and U.S. fixed income (as measured by the Bloomberg US Aggregate Bond Index).
Source: Bloomberg, National Council of Real Estate Investment Fiduciaries, S&P.
Themes Reshaping Long-Term Opportunities
Shifting global dynamics are unlocking new and attractive investment opportunities.
Demographics
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Creating opportunities in: Housing, Science & Innovation, Self-Storage
The New Normal
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Creating opportunities in: Data Centers, Hospitality, Entertainment, Logistics/Fulfillment
Deglobalization
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Creating opportunities in: Science & Innovation, Logistics/Fulfillment
The Case for Real Estate Debt
Real estate equity and real estate debt each play a distinct and complementary role in a well-diversified portfolio. Adding real estate debt in addition to real estate equity potentially brings attractive benefits, including:
In our view, private real estate has historically delivered higher income than public equities and fixed income, along with capital appreciation.
While some equity strategies can rely on property appreciation for gains, debt strategies are anchored in contractual cash flows, giving investors a clearer view on income and total return potential.
Private real estate debt’s uncorrelated returns to core real estate equity can provide diversification benefits to your portfolio.
不動産デットの有効性
The Brookfield Advantage
As one of the world’s largest and most successful real estate investors, Brookfield builds, owns and actively manages high-quality properties diversified across sectors and geographies.
We believe our operational expertise, global reach and access to large-scale capital allow us to find value—and manage risk—across market cycles.
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Global Scale With Local Presence
On-the-ground specialists bring insights and proprietary deal flow.
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Owner and Operator
Driving value by leveraging deep expertise built over a century of managing real assets.
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Proven Approach
Invest in high-quality assets on a value basis, and enhance value through hands-on management.
Our Investments Around the World
From New York's Manhattan West to London’s Canary Wharf and Berlin’s Potsdamer Platz, Brookfield’s diversified real estate portfolio spans over 25 countries.
Explore some of our assets on the map.
187 Bartram Parkway—Franklin, IN
A prime logistics facility located in the Johnson County submarket of Indianapolis, Indiana, within the historic Franklin Tech Park.
The property, spanning over 300,000 sq. ft., is fully leased through 2034 to the fifth largest Tier 1 supplier of automotive car parts and systems in the world—the sole tenant since the property was built in 2004. The facility serves as the company’s primary center for distributing parts to manufacturing plants across North America, and is a vital location for overall operations.
The Indianapolis industrial market has experienced unprecedented demand in recent years, and opportunity for ample future growth remains. The facility is well-positioned in the bustling Franklin Tech Park area—a growing business park that continues to attract top institutional tenants.
Reflection—Atlanta, GA
A 741-bed high-rise student housing property in downtown Atlanta, GA.
Units range from one to four fully furnished bedrooms, each with individual full bathrooms. It also features impressive resident amenities, including a state-of-the-art fitness center and yoga studio, luxury pool with jumbotron television, game room and podcast studio.
The property benefits from the strong supply and demand dynamic at neighboring GSU, the largest university in the state, where approximately 50,000 students are currently enrolled. Enrollment growth is forecasted to outpace supply growth over the next several years, with no new projects expected to be delivered.
Domain—Orlando, FL
A premium 23-acre apartment complex situated in the outdoorsy city of Kissimmee, southwest of Orlando.
Located just minutes away from local attractions including Disney World, and a 30-minute drive to Orlando, one of the fastest-growing metropolitan statistical areas in the U.S., the property features 324 luxuriously appointed studio, one-, two-, and three-bedroom apartments. Tenant amenities include a resort-style pool with cabanas, grills and fire pits, a clubhouse with communal workspace, a movie theater, designated pet park, fitness center and beach volleyball courts.
The complex utilizes Brookfield Properties’ multifamily revenue program to increase rental revenue and transition out of tenant concessions.
Principal Place—London, U.K.
A trophy triple net lease property leased 100% to Amazon under a 15-year lease.
Situated between the bustling City of London and creativity-focused Shoreditch, this mixed-use property houses Amazon’s U.K. headquarters; 25,000 sq. ft. of public space offering arts and events; and 20,000 sq. ft. of high-quality retail.
It benefits from proximity to local attractions such as Old Spitalfields Market and easy access to public transportation including Shoreditch High Street Tube Station (five-minute walk) and Liverpool Tube and Train Station (less than 10-minute walk).
ICD Brookfield Place—Dubai, UAE
A mixed-use property that is Dubai’s gold standard for lifestyle-led workplaces.
Situated in the heart of Dubai’s financial district, this LEED Platinum–certified building offers 990,000 sq. ft. of sustainable office space and 160,000 sq. ft. of curated retail, dining, and community amenities across four acres.
With over 98% occupancy from global firms, the property’s ongoing enhancements to its retail, arts and wellness amenities continue to strengthen performance and engagement.
The Leela Palaces, Hotels and Resorts—Multiple locations, India
In 2019, Brookfield acquired The Leela Palaces, Hotels and Resorts, India’s only pure-play luxury hotel brand and platform.
The platform consists of 12 operational hotels, representing approximately 3,400 keys, located in top business and leisure markets across India, one of the fastest-growing major economies in the world, with structural tailwinds supporting the hospitality industry and tourism.
In June 2025, Brookfield successfully executed the initial public offering of The Leela.
Ala Moana Center—Honolulu, HI
The world’s largest outdoor shopping center, offering premier shopping, dining and leisure experiences.
Located just steps from Waikiki Beach, this shopping center boasts an unparalleled mix of global retailers, beloved local brands, and luxury names including Hawaii’s only Nordstrom, Neiman Marcus and Bloomingdale’s stores. Home to over 310 shops and restaurants, the center also features a multimillion-dollar art collection, live music, hula performances and family-friendly attractions.
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.
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.