Perceptions of the CRE Investment Market

Written By Marc Nicholson

Will A Wave Of Distress Hit CRE Markets This Year?

Investor Sentiment Is Adapting

  • Some institutional investors believe CRE values will fall further, but many private investors see opportunity

  • Property performance is generally strong, meaning a wave of distress and significantly discounted sales remains unlikely

CMBS Delinquency Rates Are Below Historic Norms

  • Apart from office, property type specific delinquency rates are either near modern lows or trending lower

  • Apartment and industrial stress are both below 2%, while retail property delinquencies have trended lower in 2024

Less Competition From Institutions Could Aid Private Buyers

  • Institutional investors largely remain on the sidelines, reducing property acquisition competition – a window of opportunity for private investors

  • Long-term CRE drivers remain sound, and investors should consider where the economy will be in 5 to 10 years

Sources: Marcus & Millichap Research Services, Federal Reserve

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Marc Nicholson
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