Actually, Real Estate IS considered an "Alternative Investment". Alternative Investments encompass "anything" other than traditional investments such as Securities (Registered) to include: Stocks, Bonds, including T-Bills/Notes/Bonds, Mutual Funds, Money Market, and UTF's. However, a good comparison would be a REIT Fund, A Real Estate Fund, or even a comparison with a corporate bond.
The question should really be: What type of CRE? Office Building vs Industrial or TIC's within those assets.
As a past advisor, if you are trying to make a case for CRE vs Securities then show 20-30-100 year performance and concentrate on Standard Deviation and ALPHA measure. Real Estate has tipically had a negative correlation with markets.
Jul 10, 2009