NEW YORK--(BUSINESS WIRE)--Cadre, a leading technology-driven real estate investment manager, today announced its annual selection of top U.S. Commercial Real Estate (CRE) investment markets. Cadre’s lists of Most Valuable Places to Invest (MVPs) identifies high-growth markets across specific asset classes – multifamily, office, and industrial – based on the firm’s high-tech/high-touch approach that pairs advanced data forecasts with experienced industry insight. Cadre’s nuanced market identification is another way the firm is advancing innovation in CRE.
The U.S. private real estate market has grown to approximately $20.7 trillion in size, according to recent data from Nareit.1 As fundraising has spiked and property prices have appreciated in recent years, private real estate has drawn interest as an alternative investment strategy.2 Savvy investors will likely seek opportunities in markets with high-growth potential. Cadre’s MVPs place Charlotte, Raleigh, and Nashville among the top growing cities in each asset class – multifamily, industrial, and office. Cadre’s full list is as follows:
Multifamily |
Industrial |
Office |
Atlanta, GA |
Baltimore, MD |
Austin, TX |
Austin, TX |
Boston, MA |
Charlotte, NC |
Boston, MA |
Charlotte, NC |
Nashville, TN |
Charlotte, NC |
Miami, FL |
Philadelphia, PA |
Dallas, TX |
Nashville, TN |
Phoenix, AZ |
Denver, CO |
Philadelphia, PA |
Raleigh, NC |
Las Vegas, NV |
Raleigh, NC |
San Diego, CA |
Miami, FL |
Riverside, CA |
|
Nashville, TN |
Washington, D.C. |
|
Orlando, FL |
|
|
Phoenix, AZ |
|
|
Raleigh, NC |
|
|
San Diego, CA |
|
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Tampa, FL |
|
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Washington, D.C. |
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More information and analysis on Cadre’s approach to market selection is included in Cadre’s MVP Report, at cadre.com/mvp.
To determine the MVP markets, Cadre evaluates thousands of U.S.-based investment opportunities every year. Cadre references historical returns, forecasts growth two years into the future, and determines the potential for liquidity in each market. Incorporating the experience of Cadre’s Investments team, three lists of markets with high growth potential across each property type (multifamily, office, industrial) are produced.
“This market identification process and resulting list are critical as we refine our approach to selecting high-growth, high affordability markets around the country, and especially in light of the prospect of dislocations that may emerge,” said Ryan Williams, Founder and Executive Chairman of Cadre. “In an industry marked by antiquated data practices, we have equipped a world class Investment Team with forecasts to help move ahead of the curve. In today’s macro environment, it is even more important to be agile and informed as markets shift. Our MVPs empower our team to move with conviction and provide more institutional-grade assets for our investors.”
In 2020, Cadre launched the results of its first data-driven market selection process — a list of high-growth commercial real estate markets known as the ‘Cadre 15’. The Cadre 15 identified 15 markets that proved remarkably resilient over the course of the pandemic. The Cadre MVP is the next evolution of the Cadre 15, ultimately using more rigorous back-testing, separating selections based on property type (multifamily, office and industrial), adding emphasis to market liquidity, and incorporating even more experienced insights from the Investments team.
This year, Cadre’s data has revealed a number of timely themes driving growth in U.S. markets. For multifamily assets, Cadre is bullish on markets with enduring job and population growth where apartment rents are priced more affordably than the price of home ownership. In office, Cadre expects to focus on Southern growth markets where office utilization rates remain strong. Among industrial assets, Cadre is focused on essential locations that benefit supply chain needs. Ultimately, these factors – in concert with broad swaths of transaction, demographic, and fundamental data – highlight the expected top growers among U.S. markets.
“The Cadre MVPs allow Cadre to look forward as a more nuanced approach to market selection, helping determine where our next investment properties should be,” said Dan Rosenbloom, Head of Investments at Cadre. “Cadre directs approximately 80% of our acquisition efforts to properties in our MVP markets, so investors can feel confident in Cadre’s ability to identify the trends in CRE and increase the value in these opportunities year over year.”
To learn more about Cadre MVPs or current ways to invest with Cadre, please visit www.cadre.com.
About Cadre
Cadre is a commercial real estate investment manager that provides individuals access to invest alongside institutions in handpicked assets on their tech-driven platform. The firm uses proprietary models and machine learning to supplement the insights of their experienced investment professionals. They follow a highly disciplined process, which includes innovations in market selection, active ownership, and rigorous due diligence. Cadre’s mission is to expand access to this essential asset class, which has long contributed to legacy wealth.
As a fiduciary, Cadre has a distinct legal responsibility to investors. Cadre employees co-invest alongside clients to align their financial interests, tying capital to joint investment success. Since inception, Cadre has earned investors $27.5% realized net IRR in more than $5 billion of real estate transactions across the U.S.3 To learn more about Cadre and view our full track record and disclosures at cadre.com/track-record.
Disclaimer
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 investments 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.
1 Source: Data retrieved from 2021 Nareit report.
2 Source: Underground Research. Survey in April 2022 among n=1,181 respondents. “Mass affluent” is defined as consumers with a HHI of $75-$500k.
3 Data as of 9/6/2022. IRR calculation represents an equity-weighted average annualized internal rate of return (IRR) for realized real estate investments of offerings by Cadre since the formation of our Investment Committee through to the date of calculation, after deduction of fees and expenses. 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. View our full track record and important disclosures at cadre.com/track-record.
