Investor Opinions on CRE Pricing

Written By Marc Nicholson

DID REAL ESTATE MARKETS ALREADY REACH THE BOTTOM OF THE CYCLE?​

Private and Institutional Investors Are Thinking Differently​

  • While many institutional investors believe CRE sales prices will contract further, many private investors believe the market is turning​

  • If institutions wait on the sidelines, private investors can benefit from reduced bidding for acquisitions​

Should Investors Adjust Portfolios For Next Cycle​

  • Investors may sell performing assets to shift into markets and asset types and properties with greater upside potential​

  • This could mean executing a 1031 exchange to get capital into stronger growth-oriented properties or market​

Pricing Beginning To Rise For Some Markets and Property Subtypes​

  • Average pricing is down from peak by between 5% and 30% for major property types, but certain segments appear to be back on the rise​

  • Will investors look back at 2024 and wish they’d bought more?​

*Sources: Marcus & Millichap Research Services, Real Capital Analytics​

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Marc Nicholson
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