Commercial real estate can serve as an important part of a well-diversified portfolio. That’s one reason why many institutional investors—such as endowments and pension funds—have long included direct real estate investments in their portfolios.* Allocating a portion of your investment portfolio to funds or vehicles that invest in direct real estate may help you reach your long-term financial goals because direct real estate has the potential to provide asset class diversification, income and modest growth.1, 2, 3
Find out more in the "Why Invest in Commercial Real Estate" and "Why Diversify Globally" sections. You can find out how an investment in direct real estate can add diversification which offers the potential to reduce the overall volatility in a portfolio. You’ll also see how, when it comes to investing in real estate, a global strategy increases your diversification potential.1
*Source: 2016 Global Investor Survey by Institutional Real Estate, Inc. and Kingsley Associates. Used with permission. It is important to note that institutional investors invest on substantially different terms, including lower fees and expenses, than those offered by Hines Global REIT II. Hines Global REIT II does not have and does not expect to have a material number of institutional investors because less than 5% of investors in Hines REIT and Hines Global REIT I were institutional investors.
1Asset allocation/diversification does not guarantee a profit or eliminate the risk of loss.
2An economic slowdown, rise in interest rates or other unfavorable changes in economic conditions in the markets in which Hines Global REIT II operates could adversely impact our business, results of operations, cash flows and financial condition, our ability to make distributions to you and the value of your investment.
3A direct investment in real estate is subject to risks and may be impacted by changes in economic, demographic, capital and real estate market conditions. The development of other negative economic conditions in the markets in which Hines Global REIT II operates may significantly affect occupancy, rental rates and Hines Global REIT II’s ability to collect rents from its tenants, as well as property values.