Despite significant headwinds in the commercial real estate market over the past five years—including the pandemic, rising interest rates, and shifting workplace trends—SWIB’s $12 billion real estate portfolio remains a strong, long-term asset for the WRS.

SWIB Head of Real Estate Jason Rothenberg said having a well-positioned real estate portfolio is vital to the long-term investment strategy SWIB has put in place for the WRS Trust Funds.
“Commercial real estate has seen a lot,” said Rothenberg. “But it continues to play a critical role in our portfolio by delivering diversification, income, and inflation protection.”
The real estate portfolio, which represents about 8% of the Core Trust Fund, sits within SWIB’s Private Markets & Funds Alpha Division.
The portfolio has a variety of different types of properties, including apartments, industrial facilities, data centers, and office buildings. The majority of the investments in the portfolio are domestic, with nearly 60% of the portfolio dedicated to the residential and industrial sectors.
Rothenberg said the portfolio has moved away from traditional retail and office properties toward more resilient and growth-oriented sectors.
“Alternatives like senior housing and self-storage aren’t really ‘alternative’ anymore—they’re mainstream and essential to diversified institutional portfolios,” he noted.

While the office sector has experienced challenges, including changing workplace trends, Rothenberg said the portfolio’s strategic positioning and diversification have allowed it to be resilient, and that there are ongoing signs of recovery in cities like San Francisco, Seattle, and New York.
“Office buildings are experiencing a ‘flight to quality.’ Tenants want less space, but newer and nicer space—amenities, open design, flexible layouts,” Rothenberg said. “It’s become a block-by-block market of winners and losers.”
Higher interest rates also continue to challenge office properties and the real estate market as a whole.
“Increased rates lead to lower real estate values, even if a building is performing well,” said Rothenberg.
Yet, he sees opportunity in this recalibration. “We’re at a more attractive starting point to acquire assets now versus three years ago.”
Rothenberg sees growing opportunities in sectors driven by demographic and technological trends like the demand for senior-focused real estate and the exponential growth of data requiring more infrastructure like data centers.
He said SWIB is actively investing in these spaces, aided by its ability to act quickly and its trusted network of managers and partners.
Despite the continued macroeconomic uncertainty, Rothenberg remains optimistic.
“We’re a long-term investor,” he said. “We’re focused on stable growth, and I’m confident that our portfolio is positioned to deliver income and performance for the WRS in the years ahead.”
Hear more from Rothenberg about SWIB’s Real Estate Portfolio in Episode 34 of The SWIB Podcast.