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NAV REITs Gain Role in Wealth Portfolios, CEO Says
JLL Income Property Trust allocates about 38% of its portfolio to industrial and warehouse assets, tied in part to data center and AI-driven demand for storage space.
JLL Income Property Trust CEO Allan Swaringen said NAV REITs are playing a growing role in wealth management portfolios by offering exposure alongside traditional listed REITs, helping firms diversify beyond conventional equity and fixed-income allocations. Swaringen, who also chairs Nareit’s Public Non-Listed REIT Council, described the shift as a response to client demand for alternatives beyond the typical 60-40 stock and bond model, noting that private-market real estate exposure can complement publicly traded REIT holdings.
According to Nareit, Swaringen said greater allocations to alternative investments have been a trend for about a decade and he expects it to continue. He said wealth management firms are looking to move clients beyond the traded market by using NAV REITs to provide that additional private exposure.
Swaringen also highlighted JLL IPT’s tilt toward industrial and warehouse properties. He said industrial and warehouse assets now make up about 38% of the portfolio, with new construction and development of data centers cited as a key demand driver for warehousing and for storing components used in those facilities.
He further noted the portfolio’s sector change over time, saying JLL IPT was about 50% office 15 years ago, compared with roughly 3% today. Swaringen attributed the industrial shift partly to the sale of residential properties, which allowed reinvestment into higher-cap-rate warehouse assets, and he linked demand between AI growth and warehouse growth to a “symbiotic” relationship, as described by Nareit.