Not all investors are opting to take advantage of the stronger hand they have in today’s market, “We haven’t seen significant downward pressure on fees or carry,” says Justin Cornelius, London Real Estate partner, which according to PERE has advised on $9.7 billion of real estate fund closings in the qualifying period. “There’s an acknowledgment that fee levels are not excessive – they’re set at the right level to enable managers to essentially run the business and meet their overhead costs, but there aren’t huge profits being taken out of management fees at the moment, ” he says. “We’re at a level where everyone understands that the cost basis is appropriate relative to the fee, and there’s no need to put more pressure on that.” Even for existing funds where he has seen extensions to both the investment period and fund term most managers have been able to continue to charge fees on the same basis.