How Long Will CRE Prices Take To Recover

Many Investors Are Trying To Wait Out Downtrend

• Property prices have fallen by an estimated 2.3% to 12.5% year-over-year depending on property type

• Prices typically fall more quickly than they recover

Financing Limits Putting Downward Pressure On Prices

• Tighter and more costly financing caused price declines as prospective buyers calibrate to higher debt costs

• Investors should make sure consider contingency financing options incase the chosen lender falls through

Investors Waiting For Recovery Should Expect Longer Hold

• Investors should be prepared for an extended price recovery cycle

• Investors must consider their return on equity and relational returns of repositioning capital into other markets and asset types

*CPPI Core Index weighs Apartment, Retail, Office, and Industrial assets equally
Sources: Marcus & Millichap Research Services, Real Capital Analytics, Green Street

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