Law Office of Henry B. LaTorraca Civil Trial Attorney

Pension funds are making more real estate investments

Employee pension funds are an important part of many California residents' retirement plans. The money that is contributed to a pension fund is invested on an employee's behalf with the goal of returning profits for retirement. In the past few years, pension funds have been investing more money in commercial real estate than they used to.

Many commercial real estate analysts say that the market is maturing, and total returns for commercial real estate investments are expected to decline over the next couple years. Despite this trend, pension funds are continuing to allocate more money to commercial real estate investments. When there have been similar market conditions in the past, institutional investors have turned away from commercial real estate and invested in other markets.

The director of research at Pension Real Estate Association says that pension funds are holding more real estate investments in their portfolios because real estate is now a more mainstream class of alternative asset. According to PREA's annual Investment Intentions Survey, pension funds held an average of 9.4 percent of their investments in commercial real estate at the end of 2015. A spokesman for American Realty Advisors said that institutional investors are looking for more private investments, like real estate, to reach their return objectives in the current low-yield environment.

People may be able to save for retirement by making their own investments in commercial real estate. Depending on a person's goals, a real estate investment could be used to reach long-term retirement goals or generate regular rental profit. Investing in commercial real estate can be a complex undertaking, so people who are considering doing so may want to have the help of an attorney when reviewing a potential transaction.

No Comments

Leave a comment
Comment Information

Creative Solutions for Complex Legal Issues

Map email us for a response

Contact the Law Office of Henry B. LaTorraca

Prospective clients are invited to contact attorney LaTorraca at 562-216-2942 for an initial lawyer consultation to discuss their legal matter.

*AV Preeminent is a certification mark of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies. Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the Bar and the judiciary. Martindale-Hubbell ratings fall into two categories - legal ability and general ethical standards.

Contact Us

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Follow Henry B. LaTorraca Via Social Media

400 Oceangate Suite 700 Long Beach, CA 90802-4306 Phone: 562-216-2942 Fax: 562-216-2943 Map & Directions

facebook google plus LinkedIn directions