Investors have a love/hate relationship with real estate. They dislike the management fees. They dislike the illiquidity. They dislike the complexity. But they love the cashflow. They love the boost a good investment gives their portfolio. They love that, as an asset class made up of tangible assets, it is a relatively-safe harbour in an inflationary environment. So despite the grumbling about fees and illiquidity, they are committing capital to real estate funds, joint ventures, club deals and other vehicles at an unprecedented pace. It is hard to argue that real estate is still an alternative investment class. It appears pretty mainstream.

Investors lost a lot of money in the recent crash, but they learned an important lesson — all managers are not equal. Though all faced challenges, some responded better than others. As we have come out of the crash, the fan favorites are rising to the top. Institutional real estate is becoming — or has become — a bifurcated market w