Corporate overview

CBRE Investment Management is a leading global real assets investment management firm with $155.3 billion in assets under management* as of June 30, 2025, operating in 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.

*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.

Investment principles & strategy

CBRE Investment Management’s (the “Firm’s”) investment philosophy is to deliver superior performance by applying the Firm’s knowledge advantage through a disciplined investment process. The Firm’s investment philosophy is founded on the following principles:

Risk must be understood before it can be managed 

  • A rigorous risk framework for each mandate is formulated and then portfolios that will meet the Firm’s clients’ risk/return requirements are carefully constructed.

Market conditions change 

  • By combining a global view of capital markets with an in-depth insight into local asset fundamentals, the Firm invests in the markets and strategies that offer the best relative value at different stages of the cycle.

Every asset is unique 

  • The Firm utilizes its local information networks to understand the drivers and risks of the future cash flow of an asset, enabling the ability to see opportunities where others do not, and to be a disciplined seller.

Asset management creates value 

  • A deeper understanding of occupier requirements enables the Firm to maximize each asset’s potential through innovative and sustainable management.

Consistency counts over the long run 

  • A superior investment track record is built through consistent outperformance across cycles.

The Firm offers a range of strategies across the risk-return spectrum.

Sector forecasts

INDUSTRIAL: The industrial sector continues to lead national-level return forecasts over the next five years, both on an absolute and risk-adjusted basis. Demand is being driven by structural trends including reshoring, supply chain redundancy, and the rapid adoption of automation and AI. Occupiers are increasingly seeking facilities with enhanced specifications—such as solar power generation, EV fleet charging, and high-load electrical capacity—to support operational efficiency and automation. Trade policy is supporting increased domestic production, particularly along the I-35 corridor and in manufacturing hubs across the Sunbelt and Midwest. Construction starts have declined significantly, with logistics under-construction volumes falling below historical averages as of Q1 2025. Net absorption is concentrated in modern logistics facilities (built post-2011, ≥20,000 sf ), while legacy assets continue to lose tenants. This bifurcation is expected to persist, reinforcing rent growth and income resilience in modern logistics. Cap rates for modern logistics assets are currently at 5.2%, offering a narrow spread to the 10-year Treasury yield of 4.1%, underscoring the importance of income growth over capital appreciation.

OFFICE: The office sector remains deeply bifurcated, with performance diverging sharply between modern and legacy assets. All positive net absorption is occurring in modern stock, which is expected to hold value and begin improving. As of January 2025, vacancies have declined in over half of the 41 tracked metro markets, driven by limited new supply and a gradual return of demand. Legacy office assets continue to face structural headwinds, including obsolescence and tenant flight to quality. Cap rates for modern office assets are currently at 6.6%, while legacy office assets are priced at 11.2%, reflecting investor caution and obsolescence risk. Investment strategies are highly selective, focusing only on best-in-class modern offices in submarkets with demonstrated demand and limited competitive supply. These assets are expected to benefit from income growth, while legacy properties are largely avoided due to limited prospects for recovery.

RESIDENTIAL: Residential real estate remains a high-conviction strategy, particularly in formats that address affordability and accessibility. This includes multifamily, single-family rentals (SFR), student housing, and manufactured housing communities. Most multifamily markets have moved past peak supply, and the sharp decline in new starts supports a favorable medium-term outlook. Markets where rent-to-income ratios remain below 25% are prioritized, aligning with affordability-focused investment frameworks. Rising delinquency rates suggest growing owner distress, creating opportunities to acquire assets below replacement cost. Build-to-rent communities are well-positioned to meet demand from both young families and downsizing households, while manufactured housing offers a scalable solution to the affordability crisis. Cap rates for apartments are currently at 5.1%, closely aligned with modern logistics, indicating strong income potential. The sector is expected to benefit from both structural demand and cyclical acquisition opportunities.

RETAIL: Retail is undergoing a strategic transformation, with neighborhood and community centers (NCCs) emerging as the preferred format. These assets are benefiting from resilient consumer spending, strong labor markets, and historically low vacancy rates. Transaction volumes rose significantly in Q4 2024, contributing to an 11% year-over-year increase in overall commercial real estate transactions. Cap rates for NCC retail are currently at 5.7%, offering attractive income returns in supply-constrained submarkets. Investment is focused on metros with strong job and population growth—such as Atlanta, Charlotte, Raleigh, Tampa, and Nashville—where retail vacancy is low and new supply is limited. Assets anchored by non-discretionary retailers and those with high reversionary rent potential are prioritized. Enclosed malls remain out of favor. The retail of the future is envisioned as a multifunctional marketplace—integrating retail, delivery, and service functions tailored to local demographics. Redevelopment and repositioning strategies are key to unlocking value in this evolving sector.

Strategic corporate development 

CBRE Investment Management seeks to be a leader in global real assets investment management by consistently delivering outstanding performance and exceptional client solutions. The Firm continues to bolster its existing global platform and grow purposefully over time.

In particular, the Firm is focused on growing the following programs over the next three to five years in alignment with investor appetite and objectives:

  • Open-end, diversified core real estate funds in the U.S. and Europe
  • Open-end, diversified global core-plus funds in real estate and infrastructure
  • Open-end, sector-specific core-plus funds in logistics and residential in the U.S. and Europe
  • Closed-end, enhanced return real estate fund series in the U.S., Europe, and APAC, plus a global opportunistic secondaries fund series
  • Listed real assets strategies across real estate and infrastructure
  • A select number of premier separate accounts across asset classes, regions, and/or execution formats.

CBRE Investment Management does not place absolute limits on growth in any of the above areas, with the exception of selective hard ceilings on closed-end funds based on overall capacity of the investment opportunity. In general, the Firm would limit growth if the expected high level of performance or service could not be provided or when growth would jeopardize the performance of existing investments.

We do not foresee any potential conflict of interest that could arise from managing this particular account.

COMPLIANCE STATEMENT

Senior management of CBRE Investment Management is responsible for ensuring compliance with a code of ethics, regulatory requirements, and fiduciary obligations.

CBRE Investment Management is an investment adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. It also is authorized and regulated in certain European and Asian countries to undertake certain regulated activities in conjunction with its investment advisory and fund management services.

The firm has designated compliance officers across the regions and has adopted, implemented, and provided for reviews of adequacy and effectiveness of its written policies and procedures.

All employees are required to comply with the Investment Management Policies and Procedures, which include legal and compliance policies.

This information is for informational purposes only. Past performance is not indicative of future results, and the value of investments can go down as well as up. Investing involves risk, including the loss of your entire investment.