Within the Preqin database, there are over 280 investment consultants worldwide offering real estate consultancy services. Through their wide-ranging knowledge of the alternative investments space, these consultants are able to provide investors with the necessary tools to make informed decisions with regards to investment choices. With investors looking to increase their long-term exposure to the real estate asset class, as noted in the December 2014 issue of Preqin Real Estate Spotlight, the role of investment consultants in the real estate space is set to become ever more important.
Preqin data shows that an overwhelming majority (92%) of consultants providing real estate consultancy services are located in the North America and Europe, with 64% and 28% headquartering in these regions respectively. The location of these consultants’ clients follows a largely similar pattern; for example, 78% of real estate investment consultants on the Preqin database have active clients in North America.
In terms of the nature of the service offered to clients, over one-third (36%) of real estate investment consultants advise on a non-discretionary basis, with only 6% solely providing discretionary services. The remaining 58% of consultants in Preqin’s database provide both types of service to their client base.
One of the largest consultants by real estate assets under advisement is Cleveland, Ohio-based Townsend Group, which has allocations to the asset class of $152bn. Townsend Group provides custom investment solutions exclusively within real estate. It tailors its objectives to clients’ needs by using primary fund investments as well as suggesting activity in the secondaries and co-investment markets.