via the NAIC Capital Markets Bureau Special Report
"U.S. Commercial Real Estate Valuation Trends"
Commercial real estate (CRE) assets are a key component of the U.S. investment landscape. They can reward investors with incremental yield relative to other asset classes, such as bonds, and provide diversification benefits to an investment portfolio. U.S. insurers, in particular, historically have been active investors in CRE assets, resulting in one of the larger asset classes for the industry. For the purposes of this report, the insurance industry’s CRE exposure consists of properties owned by insurers, as well as mortgage loans.