PIMCO’s real estate platform is one of the largest and most diversified in the world, with $177.1B1 in assets and a broad set of solutions that leverage decades of expertise across public and private equity and debt markets. Drawing upon a vast market presence, proprietary investment processes and deep asset level expertise, we aim to deliver differentiated insights and a broad set of solutions across the real estate platform investment spectrum.

PIMCO real estate platform by the numbers1:

  • $177.1bn real estate AUM, including:
  • $81.9bn private equity
  • $35.7bn private debt
  • $57.2bn public debt
  • $2.2bn public equity
  • 125+ acquisition and origination investment professionals
  • 130+ asset management professionals
  • 30 global offices in 19 countries with real estate experts on the ground

As of 30 June 2025. All figures in USD. 1AUM includes $94.1B in estimated gross assets managed by PIMCO Prime Real Estate, which includes PIMCO Prime Real Estate GmbH, PIMCO Prime Real Estate LLC, and their subsidiaries and affiliates. PIMCO Prime Real Estate LLC is a wholly-owned subsidiary of Pacific Investment Management Company LLC, and PIMCO Prime Real Estate GmbH and its affiliates are wholly-owned by PIMCO Europe GmbH. PIMCO Prime Real Estate LLC investment professionals provide investment management and other services as dual personnel through Pacific Investment Management Company LLC. PIMCO Prime Real Estate GmbH operates separately from PIMCO.

Sector forecasts (as of June 2025)

INDUSTRIAL: Industrial real estate has become central to global trade and e-commerce. While the rapid rent growth of recent years is slowing, demand remains strong for assets near key logistics corridors and urban centers. Institutional capital continues to flow, particularly into such niche segments as urban logistics and cold storage. Geography and tenant profile influence the sector’s outlook; U.S. East Coast ports are experiencing changes due to reshoring, and properties near major logistics corridors tend to have higher values. Urban demand in Europe and Asia supports the development of infill and sustainable facilities, however, there are still regulatory and cost challenges.

OFFICE: The office sector is undergoing a slow recalibration amid high interest rates, tight credit, and shifting workplace norms. Leasing and use are showing tentative signs of stabilization, though recovery remains uneven and uncertain. Prime office buildings in central districts attract tenants because of return-to-office policies and sustainability goals, while older properties face growing risk of obsolescence unless upgraded. In the U.S., some cities show improvement, but oversupply and cautious refinancing continue to pressure weaker assets, with slow recovery and ongoing distress for noncore properties. In Europe, availability of class A properties is constrained by regulatory factors and ESG requirements. Asia-Pacific maintains demand, though momentum varies across markets.

RESIDENTIAL: The living sector offers durable income potential driven by urbanization, aging populations, and shifting household structures. Rental housing demand remains strong globally, supported by high home prices, mortgage rates, and evolving renter preferences, boosting interest in multi-family, build-to-rent, and workforce housing. Japan stands out for its mix of urban migration, affordable rental housing, and institutional depth – offering a stable market for long-term residential investment. Student housing is also attractive, benefiting from enrollment growth, limited supply, and international mobility, especially in English-speaking countries.

RETAIL: Retail real estate is showing selective resilience, driven by necessity, location, and adaptability. Essential services are proving durable and attractive amid high interest rates. The sector is divided: prime assets with steady traffic and long leases attract investment, while secondary assets decline from obsolescence. In the U.S., grocery-anchored centers remain strong, while department-store malls face secular decline. Europe sees essential-service centers outperforming and spaces being repurposed for logistics. In Asia, tourism has contributed to the recovery of high street retail in Japan and South Korea, while suburban malls have experienced slower growth due to inflation.

DATA CENTRES (DIGITAL INFRASTRUCTURE): Digital infrastructure is now central to the global economy, driven by AI, cloud computing, and data-intensive applications. This brings challenges such as power limitations, regulatory complexities, and rising capital demands. In mature hubs, hyperscalers are securing capacity years ahead, especially for AI and cloud workloads, but facilities focused on intensive AI training have risks related to grid reliability, scalability, and long-term cost efficiency. Europe sees investment moving to Tier 2 and 3 cities due to power shortages and permitting delays in traditional hubs. Asia-Pacific markets attract capital for their stability and ESG alignment.

Investment principles & strategy

The PIMCO real estate platform offers strategies across public and private markets and in both equity and debt: (all data as of end March 2025):

  • Real Estate Equity: We invest in real estate equity across the risk spectrum, from core and core+ to opportunistic and special situations strategies. Our platform combines the expertise of PIMCO Prime Real Estate in high-quality, performing core /core+ investing, with the higher-yielding, opportunistic focus that PIMCO has developed over the past 15+ years.
  • Real Estate Credit: PIMCO’s credit-based strategies seek to capitalize on opportunities across the real estate lending markets. This includes transitional lending, which provides flexible financing for properties undergoing repositioning, tenant acquisition, or redevelopment. PIMCO invests in senior loans, mezzanine loans, participating debt, B-notes, loan portfolio term financing, construction loans, structured, sub- and non-performing loans, and distressed debt.
  • Public real estate: As part of broader mandates, PIMCO manages over $60B in public real estate assets. Investments include CMBS, CRE CDOs, secured and unsecured debt, and REIT preferred/common equity

COMPLIANCE STATEMENT
This material is provided for informational purposes only and does not constitute an offer to sell or solicitation of an offer to buy interests in any PIMCO trading strategy or investment. The investment strategies discussed are speculative and involve a high degree of risk, including loss of some or all capital. Statements on financial market trends are based on current market conditions, which will fluctuate. The views expressed are those of PIMCO and are subject to change without notice. There is no guarantee that these views are correct or that these trends will continue. PIMCO has no obligation to update the information contained herein. PIMCO is a trademark of Allianz Asset Management of America LLC in the United States and throughout the world. ©2025, PIMCO.