Feb. 16, 2018
Strong corporate growth and recently-passed tax legislation are among the factors keeping commercial real estate investors in a “buy” mode for 2018, according to the recent National Investor Sentiment Report released by Real Capital Markets. Recent surveys and interviews revealed that 76.7 percent of commercial real estate investors characterized their investment strategy as “buy.” More than 41 percent said they were in full buy mode, while 35.3 percent said they were buyers, but trending toward holding.
“Investors across the country continue to see great opportunity and benefit in commercial real estate investing,” said Steve Shanahan, Executive Managing Director, Real Capital Markets. “Regardless of the product type or whether the strategy is core or value add, the focus is on finding assets that can deliver strong yields that outpace other investment options.”
Some of the highlights of the report include:
- Multifamily assets are seen as the most attractive, with 35 percent of investors ready to buy them. Industrial is close behind with 33 percent of investors interested.
- E-commerce continues to drive industrial growth, creating a need for more warehouse space, sometimes at the expense of retail real estate.
- Investors are looking for value-add, but those properties are difficult to find.
- Investors are concerned about unrealistic pricing and the availability of quality product.
- Southern and Western regions are attracting the highest number of investors.
- Overall, 48.4 percent of investors say that their attitudes about investing have not changed in the last 12 months. 5 percent say they are even more of buyers no than they were one year ago.
Overall, investors are optimistic going into the first quarter of 2018, which is likely to give rise to another good year for capital markets.
To read the full report, click here.