The Current State of CRE Transactions
What Long-Run CRE Deal Flow Trends Mean For Investors in 2023
The Forces Restraining Transaction Flow
The Fed lifted rates by 300 bps in a 140-day span, forcing CRE investors to recalibrate their investment underwriting and strategies
While the rapid rise of debt capital costs slowed deal flow, interest rates remain below their long-term average; as investors acclimate, activity could revive
Since 2000, Investment in CRE Has Risen Dramatically
The retreat in transaction volumes in 2022 is negligible within the context of the sector growth over the last 2 decades
In this time, CRE investors have navigated numerous down cycles only to return stronger
What Will It Take For Transaction Velocity To Rise?
Investors have become increasingly sophisticated, information has improved dramatically and capital has become more prolific
CRE investing has become more mainstream, bolstering deal flow during both upcycles and downturns
Includes apartment, retail, office, industrial, hotel and seniors housing sales $2.5 million and greater
Sources: Marcus & Millichap Research Services, Real Capital Analytics
