Public pensions are facing challenges as real estate investments have underperformed, mirroring issues seen in venture capital for endowments. Many state plans, particularly in Connecticut, New Jersey, Washington, and Arizona, have struggled to meet benchmarks due to high real estate exposure, prompting a reevaluation of strategies. As private real estate continues to decline, pensions are shifting focus towards sectors with stronger fundamentals, such as industrial and multifamily properties, while moving away from distressed office and retail assets.
