Cadre Survey Finds High Income Investors are Considering New Options to Protect Against Economic Headwinds
Amidst market instability, the survey finds that 62% of commercial real estate investors (CRE) are confident in their current strategy compared to only 23% of those not invested in CRE.
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NEW YORK, NY– May 25, 2023 – Cadre, a leading technology-driven real estate investment manager, today announced the results of a survey on current investment and retirement attitudes among U.S. investors. The survey found that nearly 8 in 10 American investors are rethinking their financial future – especially high earners.
While most investors (62%) already have a strategy to build wealth, many respondents have suffered investment losses over recent turbulent periods. Those with $150,000 in stock portfolios were hit particularly hard, with more than 80% losing money in the last two years.
Amidst turbulent financial markets, respondents are increasingly interested in the advantages of investing in commercial real estate, with 52% expressing interest in the potential for steady income, 50% stating inflation protection, and 48% stating tax benefits or incentives.
The survey found that of those invested in commercial real estate, 62% are very confident that their current investment strategy will help them reach their wealth goals, while only 23% of those not invested in commercial real estate say the same.
“Our research shows people are continuing to explore alternative investments, especially in response to increasing economic instability,” said Ryan Williams, Founder, CEO, and Executive Chairman of Cadre. “While common investments such as stocks and bonds are impacted by market cycles, commercial real estate is one asset class that can potentially offer a hedge against inflation and steady cash flow for future-minded investors.”
Cadre offers investors risk-adjusted returns as well as the flexibility of choice between individual projects or diversified funds, giving investors looking to secure their financial futures reimagined opportunities to invest in commercial real estate.
Since its inception, Cadre has earned its investors 27.6% net IRR in more than $5 billion real estate transactions across the US.[1], [2] Cadre distinguishes itself by incorporating data science and technology to reengineer the investment experience. The platform is proprietary and unique in its ability to gather, analyze and leverage information. Cadre’s offerings provide investors with a highly focused and targeted approach to investing and capitalizes on the ever-changing commercial real estate market with an eye toward microenvironments.
Survey Methodology
This random double-opt-in survey of 1,000 U.S. adults who invest was commissioned by Cadre and conducted between March 27 and March 31, 2023. It was conducted by market research company OnePoll, whose team members are members of the Market Research Society and have corporate membership to the American Association for Public Opinion Research (AAPOR) and the European Society for Opinion and Marketing Research (ESOMAR).
About Cadre
Cadre is a commercial real estate investment manager that invests alongside individuals and institutions on our tech-driven platform. As a fiduciary, we have a distinct responsibility to investors. Our highly disciplined process features innovations in market selection, asset management, and rigorous due diligence. We are committed to expanding access to this essential asset class, which has long contributed to legacy wealth.
Since inception, Cadre has earned investors 27.6% realized net IRR in $4 billion of real estate transactions across the U.S. [1:1],[2:1] To learn more about Cadre and view the full track record and important disclosures, visit cadre.com/track-record.
- Data as of December 31, 2022. IRR calculation represents an equity-weighted average annualized internal rate of return (IRR) for all single-asset realized real estate investments of offerings firm-wide by Cadre since the formation of our Investment Committee on March 31, 2016, through to the date of calculation, after deduction of fees and expenses. Calculations assume no fee breaks or concessions were applied to any underlying offering. Equity multiple represents the investment multiple on equity, which is calculated by dividing the aggregate realized proceeds for the applicable investment after deduction of fees and expenses. Realized and updated target returns are inclusive of all of Cadre’s completed dispositions. Realized returns are subject to change following final distributions on sold assets. Calculations are generally made as of the date of the sale of the applicable asset and may include targeted proceeds that are to be distributed to the vehicles managed by Cadre (but which have not been realized by the vehicle as of the date of calculation). The calculation of net return figures for each investment pertains to single-asset investment vehicles only. The calculation of net return figures for each investment in a multi-investment fund vehicle is difficult, if not impossible, to prepare with accuracy due to the estimation of fund-wide expenses and other variable fees applicable to each investment that are necessary for such calculations. Returns reflect net performance and are not audited. Other vehicles, such as the Cadre Direct Access Fund LP and parallel vehicles, are also participants in these investments. ↩︎ ↩︎
- Gross Distributions to Investors refers to the sum of any income distributions, sale gains, and return of capital without deduction for any investor-specific withholding or preferred equity payments. Updated on December 31, 2022. ↩︎ ↩︎
Disclaimer
Educational Communication
Not AdviceThe views expressed above are presented only for educational and informational purposes and are subject to change in the future. No specific securities or services are being promoted or offered herein.
Not Advice
This communication is not to be construed as investment, tax, or legal advice in relation to the relevant subject matter; investors must seek their own legal or other professional advice.
Performance Not Guaranteed
Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are not guaranteed and may not reflect actual future performance.
Risk of Loss
All securities involve a high degree of risk and may result in partial or total loss of your investment.
Liquidity Not Guaranteed
Investments offered by Cadre are illiquid and there is never any guarantee that you will be able to exit your investments on the Secondary Market or at what price an exit (if any) will be achieved.
Not a Public Exchange
The Cadre Secondary Market is NOT a stock exchange or public securities exchange, there is no guarantee of liquidity and no guarantee that the Cadre Secondary Market will continue to operate or remain available to investors.
Opportunity Zones Disclosure
Any discussion regarding “Opportunity Zones” — including the viability of recycling proceeds from a sale or buyout — is based on advice received regarding the interpretation of provisions of the Tax Cut and Jobs Act of 2017 (the “Jobs Act”) and relevant guidances, including, among other things, two sets of proposed regulations and the final regulations issued by the IRS and Treasury Department in December of 2019. A number of unanswered questions still exist and various uncertainties remain as to the interpretation of the Jobs Act and the rules related to Opportunity Zones investments. We cannot predict what impact, if any, additional guidance, including future legislation, administrative rulings, or court decisions will have and there is risk that any investment marketed as an Opportunity Zone investment will not qualify for, and investors will not realize the benefits they expect from, an Opportunity Zone investment. We also cannot guarantee any specific benefit or outcome of any investment made in reliance upon the above.
Cadre makes no representations, express or implied, regarding the accuracy or completeness of this information, and the reader accepts all risks in relying on the above information for any purpose whatsoever. Any actual transactions described herein are for illustrative purposes only and, unless otherwise stated in the presentation, are presented as of underwriting and may not be indicative of actual performance. Transactions presented may have been selected based on a number of factors such as asset type, geography, or transaction date, among others. Certain information presented or relied upon in this presentation may have been obtained from third-party sources believed to be reliable, however, we do not guarantee the accuracy, completeness or fairness of the information presented.
No U.S. or foreign securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through us.
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